This paper quantifies the impact of changes in U.S. monetary policy on sovereign bond spreads in emerging market countries. Specifically, the paper explores empirically how country risk, as proxied by sovereign bond spreads, is influenced by U.S. monetary policy, country-specific fundamentals,...

This paper quantifies the impact of changes in U.S. monetary policy on sovereign bond spreads in emerging market countries. Specifically, the paper explores empirically how country risk, as proxied by sovereign bond spreads, is influenced by U.S. monetary policy, country-specific fundamentals,...

This paper empirically examines the extent to which a country's economic growth is influenced by the economies of its trading partners. Panel estimation results based on four decades of data for more than 100 countries show that trading partners' growth has a strong effect on domestic growth,...

The methodology used in this paper has three distinguishing features: the natural rate of unemployment and potential output are jointly estimated; the procedure integrates wage and price data with "real" and structural data; and the approach encompasses many of the methods found in the literature....

The random walk property of exchange rates is regarded as carrying implications for the kinds of shocks that have driven exchange rates and the models appropriate for analyzing their behavior. This paper describes the results of stochastic simulations of Dornbusch's (1976) sticky-price monetary...

Several questions are addressed about the time-series processes followed by dollar exchange rates. The stochastic process for exchange rates implied by structural models and the conditions under which they would be described by random walks are examined. Tests on the univariate time series for...

In the past few years, several countries have implemented rules that seek to adjust the nominal exchange rate in such a way as to prevent losses of competitiveness. Although the manner in which these rules have been implemented has varied among countries, exchange rate adjustments have typically...