Asia proved to be remarkably resilient in the face of the global financial crisis, but why was its output performance stronger than that of other regions? The paper shows that better initial conditions — in the form of lower external and financial vulnerabilities — contributed significantly...

This paper develops a comprehensive new framework to measure and analyze sovereign risk. Contingent claims analysis is used to construct a marked-to-market balance sheet for the sovereign and derive a set of forward-looking credit risk indicators that serve as a barometer of sovereign risk....

The authors test whether the time-series positive correlation of inflation and intermarket relative price variability is also present in a cross section of U.S. cities. They find this correlation to be a robust empirical regularity: cities that have higher than average inflation also have higher...

After the end of the Bretton Woods system in the early 1970s, exchange rate policy in Australia moved through several regimes over an extended period. The overarching theme was to increase flexibility and efficiency in the Australian currency market and the financial system more generally. This...

We test whether the time-series positive correlation of inflation and intermarket relative price variability is also present in a cross-section of US cities. We find this correlation to be a robust empirical regularity: cities which have higher than average inflation also have higher than...

The increase in the independence of the Reserve Bank of New Zealand in 1989 allows a test of the theoretical implications of the central bank independence literature. Furthermore, the similar inflationary experiences of Australia and Canada provide a rare set of controls. This paper shows that...

type="main" xml:lang="en" <title type="main">SUMMARY</title> </section> <title type="main">Inflation persistence
DOES IT CHANGE?</title> <p> Inflation has been low in many countries for at least a decade. But have inflation processes changed in ways that would help make low inflation permanent? Using both aggregate and disaggregated inflation data, we find...</p>

Previous tests for convexity in the Phillips curve have been biased because researchers have employed filtering techniques for the nonaccelerating inflation rate of unemployment (NAIRU) that have been fundamentally inconsistent with the existence of convexity. This paper places linear and...