This paper analyses a stochastic international growth model with money and country-specific forcing processes to productivity and money growth rates. Monies are required, owing to cash-in-advance constraints for consumption goods, but the liquidity constraints need not be binding for all...

This, the first book in the Global Development Network series, brings together the views of researchers from the developing and developed world and provides models of successful research conducted in developing and transition countries.

The authors compare universal social programs with targeted social benefits. They define 'universality' as separability of the tax/transfer system in income and other nonmonetary attributes, and introduce the concept of 'parallel equity'--a requirement that like differences in needs should be...

We argue that the traditional question 'fixed vs. flexible exchange rates?' is not well-defined, because 'flexible exchange rates' does not explicitly specify any particular monetary policy. In traditional analyses, 'flexible exchange rates' was interpreted as implying a fixed money supply. But...

This paper presents a formal general-equilibrium model of a monetary economy in which agents' decision rules are derived from the underlying preferences, technology, endowments, and information. Firms face kinked demand curves for the reason given by J. Stiglitz (1979)-customers know the price...