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Are Entrepreneurs Aware of Covered Interest Parity and Dollar Shortage?

Nariman, Farhad; Heshmati, Almas - 2022

The purpose of this study is demonstrating why entrepreneurs should monitor the broad dollar index. This paper explains the reason why the broad dollar index has become a risk (leverage) gauge since 2008 using the Covered Interest Parity (CIP). CIP can be viewed as a reflection of the shadow...

Persistent link: https://www.econbiz.de/10013351755

Equal Pay for Better Health: The Health Cost of the Gender Wage Gap

Averett, Susan L.; Biener, Adam; Ogrokhina, Olena - 2024

This paper explores the relationship between gender wage gaps and women's overall health. Using data from the 2011-2019 Current Population Survey, we employ entropy balancing to create comparable samples of men and women and estimate wage gaps for full-time employed working-age women. Adjusting...

Persistent link: https://www.econbiz.de/10015097058

Should easier access to international credit replace foreign aid?

Bandyopadhyay, Subhayu; Lahiri, Sajal; Younas, Javed - 2011

We examine the interaction between foreign aid and binding borrowing constraint for a recipient country. We also analyze how these two instruments affect economic growth via non-linear relationships. First of all, we develop a two-country, two-period trade-theoretic model to develop testable...

Persistent link: https://www.econbiz.de/10010282320

How Does Globalization Affect the Synchronization of Business Cycles?

Kose, M. Ayhan; Prasad, Eswar; Terrones, Marco E. - 2003

This paper examines the impact of rising trade and financial integration on international business cycle comovement among a large group of industrial and developing countries. The results provide at best limited support for the conventional wisdom that globalization has increased the degree of...

Persistent link: https://www.econbiz.de/10010276292

Employment, exchange rates and labour market rigidity

Alexandre, Fernando; Bação, Pedro; Cerejeira, João; … - 2010

There is increasing evidence that the interaction between shocks and labour market institutions is crucial to understanding the dynamics of employment. In this paper, we show that the inclusion of labour adjustment costs in a trade model affects the impact of exchange rate movements on...

Persistent link: https://www.econbiz.de/10010269855

Does openness to international financial flows contribute to productivity growth?

Kose, M. Ayhan; Prasad, Eswar S.; Terrones, Marco E. - 2008

Economic theory has identified a number of channels through which openness to international financial flows could raise productivity growth. However, while there is a vast empirical literature analyzing the impact of financial openness on output growth, far less attention has been paid to its...

Persistent link: https://www.econbiz.de/10010268841

Government Debt as Insurance against Macroeconomic Risk

Barbie, Martin; Hagedorn, Marcus; Kaul, Ashok - 2001

there an optimal maturity structure of public debt? Using a stochastic Diamond OLG model, we tackle these questions. We show … evidence that real world economies, while being dynamically efficient, are likely not to be interim Pareto optimal. We conclude … that there may be a welfareimproving role for a well-designed maturity structure of debt. …

Persistent link: https://www.econbiz.de/10010262613

Fiscal Policy, Sovereign Default, and Bailouts

Juessen, Falko; Schabert, Andreas - 2013

This paper examines fiscal policy without commitment and the effects of conditional bailout loans. The government relies on distortionary taxation and decides between full debt repayment and costly default. It tends to overborrow due to myopia, which induces default to be a relevant policy...

Persistent link: https://www.econbiz.de/10010328905

Completing the Monetary Union of Europe as Mid-term Solution of the Euro Crisis

Fischer, Justina A.V.; Pastore, Francesco - 2015

This research note discusses the Euro crisis in Greece in light of the referendum of July the 5th. It lays out the social and political costs of a GREXIT, but also of a continuing austerity policy. It proposes a reform policy fostering growth in Greece and discusses the role of conditionality....

Persistent link: https://www.econbiz.de/10011307457

Populism, Political Risk and the Economy: Lessons from Italy

Balduzzi, Pierluigi; Brancati, Emanuele; Brianti, Marco; … - 2020

We study the effects on financial markets and real economic activity of changes in risk related to political events and policy announcements in Italy during the 2013-2019 period that saw the rise to power of populist parties. We focus on events that have implications for budgetary policy, debt...

Persistent link: https://www.econbiz.de/10012180122