The effects of the oil price shocks of the 1970s were critically contingent on the domestic arrangements that determined the incidence of the shocks--specifically whether labor income or capital income bore the brunt. This differed between the two shocks in some countries and differed between...

This paper examines the linkage between economic developments in industrial economies and the economic performance of six Asian countries. A simple model is constructed to investigate these links, with particular emphasis on developments in the Asian countries' external positions and their...

The significant increase in exchange rate variability over the last several years has made it necessary for all countries, regardless of their exchange rate policies, to consider the effect of multilateral exchange rate changes on their balance of payments. This study presents an attempt to...

Countries differed in their adjustment to the commodity price shocks of the 1970s. In some countries there was little wage adjustment, so that the brunt of the terms-of-trade loss was borne by profits; in others greater wage adjustment allowed the term-of-trade loss to be distributed more evenly...

Before the movement toward a generalized system of floating exchange rates, it was hoped that flexible rates would permit countries to pursue independent monetary policies. Experience with the system has led both policymakers and theoreticians to recognize the high degree of monetary...

Although there was considerable debate on the merits of fixed versus floating exchange rates before the advent of the current floating regime, many aspects of recent exchange rate behavior have still been puzzling. In particular, exchange rate movements have not been as smooth and mild as many...