In this paper, we provide a dynamic general equilibrium framework with an explicit investment-financing constraint. The constraint is intended as a reduced form to capture the balance sheet effects that have been widely regarded as an important determinant of financial crises. We derive a link...

In this paper, we provide a dynamic general equilibrium framework with an explicit investment-financing constraint. The constraint is intended as a reduced form to capture the balance sheet effects that have been widely regarded as an important determinant of financial crises. We derive a link...

This paper evaluates the performance of Consensus Forecasts of real GDP growth for a large number of industrialized and developing countries for the time period October 1989 to December 1999. The questions addressed are the following: How accurate are private sector forecasts? How does their...

This paper evaluates the performance of Consensus Forecasts of real GDP growth for a large number of industrialized and developing countries for the time period October 1989 to December 1999. The questions addressed are the following: How accurate are private sector forecasts? How does their...

This paper develops a model that captures important features of debt crises of the Brazilian type. Its applicability to Brazil lies in the facts that (1) macroeconomic fundamentals were relatively sound in the wake of the crisis (e.g., a nonnegligible primary surplus, a relatively low debt-GDP...

This paper develops a model that captures important features of debt crises of the Brazilian type. Its applicability to Brazil lies in the facts that (1) macroeconomic fundamentals were relatively sound in the wake of the crisis (e.g., a nonnegligible primary surplus, a relatively low debt-GDP...

Traditional analyses of budget deficits arising from tax cuts have focused on the size of the deficit and disregarded the underlying tax system. This paper examines the international effects of budget deficits under alternative tax systems. The key finding is that the consequences of tax...

Macroeconomic issues pertinent to the international and domestic effects of international VAT harmonization are highlighted, and VAT harmonization policies envisaged for Europe in 1992 are outlined. An intertemporal model is developed to analyze the incentive effects of various tax policies and...

The Mundell-Fleming model of international macroeconomics originated in the early 1960s and has been extended during the ensuing quarter century. This paper develops an exposition that integrates the various facets of the model and incorporates its extensions into a unified analytical framework....