This paper re-examines the empirical validity of the Prebish-Singer hypothesis of a secular decline in the relative price of primary commodities in terms of manufacturing goods. The empirical findings based on arithmetic and geometric commodity price indices are compared. When Grilli-Yang's...

This paper presents a model for analyzing potential conflicts between short-run output and employment effects and medium-run growth effects of various fiscal actions. In the model, both firms and households are intertemporal optimizers; short-run wage stickiness and interest rate controls...