This paper reviews the literature on fiscal policy and the exchange rate--focusing on an expansionary fiscal policy that does not affect market expectations about the future course of monetary policy. It is shown that a few key elements determine the sign and magnitude of the relationship...

This paper studies the role of domestic and foreign savings in financing capital formation in 19 industrial countries during the years after World War II. The authors' interpretation of the statistical evidence is that there is very little support for the view that, over the medium term, goods...

The cost of interest payment guarantees is difficult to evaluate because guarantees are a contingent obligation that become effective only if a certain condition is met (that is, the debtor fails to make a certain payment). In this paper a technique to value interest payment guarantees on...