This paper uses a stylized model of financial intermediation to characterize the exact circumstances along various paths of economic growth, financial development, and liberalization that can trigger a financial crisis. It shows how to avoid financial crises through proper sequencing of various...

This paper uses a stylized model of financial intermediation to characterize the exact circumstances along various paths of economic growth, financial development, and liberalization that can trigger a financial crisis. It shows how to avoid financial crises through proper sequencing of various...

There is surprisingly little empirical research on whether Balassa-Samuelson effects can explain the long-run behavior of real exchange rates in developing countries. This paper presents new evidence on this issue based on a panel-data sample of 16 developing countries. The paper finds that the...

The conventional growth-accounting approach to estimating the sources of economic growth requires unrealistically strong assumptions about either competitiveness of factor markets or the form of the underlying aggregate production function. This paper outlines a new approach utilizing...

The conventional growth-accounting approach to estimating the sources of economic growth requires unrealistically strong assumptions about either competitiveness of factor markets or the form of the underlying aggregate production function. This paper outlines a new approach utilizing...

There is surprisingly little empirical research on whether Balassa-Samuelson effects can explain the long-run behavior of real exchange rates in developing countries. This paper presents new evidence on this issue based on a panel-data sample of 16 developing countries. The paper finds that the...

Staff Papers has, since its inception in 1950, been an important vehicle for the dissemination of research done by staff of the IMF. The paper discusses three areas in which articles published in Staff Papers up until the 1970s made major contributions to the literature in international...

There is general puzzlement in both academic and policymaking circles about the supposed failure of the liberalization experiments that were undertaken in the mid- to late 1970s by some developing countries, particularly those located in the Southern Cone of Latin America (Argentina, Chile, and...

The behavior of private investment in developing countries has obvious implications, both for long-term development and for the design of shorter-term stabilization programs. What determines the rate of private investment and how this rate responds to changes in government policies are questions...