This paper examines the determinants of currency crises with a panel annual dataset for 30 countries between 1975 and 1996. We estimate a probit model with random effects and find that high rates of seignorage, current account imbalances, real exchange rate misalignment, low foreign exchange...

This paper analyzes Export Processing Zones (EPZs) from a worldwide perspective and draws lessons from the accumulated experience in several countries. It argues that developing countries can take advantage of the opportunities provided by EPZs for the acquisition of superior technology,...

This paper reviews the foreign debt burden in Central America with special emphasis on Honduras and Nicaragua, which have a large debt overhang. Several indicators suggest that this foreign debt seriously impedes economic growth in both nations. Honduras and Nicaragua, the poorest countries of...

Recent macroeconomic models of developing countries have emphasized the possibility of contactionary devaluations, stressing that domestic aggregate demand is likely to be reduced by the devaluations while aggregate supply may respond only slowly to the change in relative prices brought about by...

This paper evaluates the repercussions of the Asian crisis for Latin America and discusses policy options available to some of the major countries in the region. The paper starts by reviewing the contributions of several theoretical models to our understanding of crises. Next, it discusses the...