Understanding macroeconomic developments and policies in the twenty-first century is daunting: policy-makers face the combined challenges of supporting economic activity and employment, keeping inflation low and risks of financial crises at bay, and navigating the ever-tighter linkages of...

Against the backdrop of the financial crisis that unfolded in 2008, this book deals with policy challenges going forward, focusing in particular on the ongoing catching-up process in Central, Eastern and South-Eastern European countries.

The paper examines the effects of aid and its volatility on consumption, investment, and the structure of production in the context of an intertemporal two-sector general equilibrium model, calibrated using data for aid-dependent countries in Africa. A permanent flow of aid mainly finances...

This paper analyzes the efficacy of alternative financial stabilization policies in response to disturbances from various sources. A model, appropriate to the institutional structure of a developing country, is estimated. The model is subjected to shocks from the domestic real economy, domestic...

This paper examines two questions: (a) What basket of currencies should a small developing country use as the exchange rate standard for its currency? and (b) When are discretionary changes of the value of its currency against the standard warranted? The exchange rate policy of a small,...

This paper examines stabilization policy options in an open, less developed economy that is subject to transitory shocks. Particular emphasis is given to exchange rate policy as an instrument of stabilization. It is shown by means of a simple model, in which the authorities seek to minimize...

This paper is concerned with the specification and estimation of a model of the world gold market. Two approaches to an understanding of the gold market are common. The first approach is to regard it as an ordinary flow market in which gold is traded for its intrinsic commodity value and buyers...