This paper describes some results obtained from simulating a computable general equilibrium model calibrated with 1960 data for Japan. Of the two closures used, the Keynesian type, which assumes unutilized resources, performs better than the neoclassical closure, which assumes full employment of...

The risks of falling into the Middle Income Trap have increasingly become a focus of discussions on the long-term economic and social development prospects of developing countries. These risks, and how to minimize them, are being debated at the highest levels of policy making in some of the...

Without the advantages of low wages or high skills, East Asian economies are following a new path of regional integration, led by China. Along this path, policy-makers must manage a migration of 2m people a month to East Asia's cities, a sharp and unprecedented increase in income inequality, and...

The shift in global goods production towards Asia is well documented. But global consumer demand has so far been concentrated in the rich economies of the OECD. Will that also shift towards Asia as these countries get richer? This paper defines a global middle class as all those living in...

With dual exchange rates, where a managed official exchange rate coexists with a floating black market rate, a given budget deficit may be consistent with many different inflation rates rather than two, which is the normal result in closed economy systems. Further, all these inflation equilibria...

Transparency of aid activity is being recognized to be one of the key areas whereby aid effectiveness can be improved. In this paper, we propose an index to measure and rank donors on the transparency of their aid activities. The Transparency Index rates 31 bilateral and multilateral donor...

The risks of falling into the Middle Income Trap have increasingly become a focus of discussions on the long-term economic and social development prospects of developing countries. These risks, and how to minimize them, are being debated at the highest levels of policy making in some of the...