This study envisages analyzing the convergence criteria in the context of recent macroeconomic developments, focusing on their sustainability. In order to highlight the sustainability of convergence indicators, the paper includes an analysis of the initial dynamics, both in terms of nominal and...

This postdoctoral research aimed to highlight sustainability convergence criteria in the context of financialisation, with impact on the prudential regulator. Based on complex analysis, the research work has revealed that countries in Central and Eastern Europe still face significant...

We prove that the change in welfare of a representative consumer is summarized by the current and expected future values of the standard Solow productivity residual. The equivalence holds if the representative household maximizes utility while taking prices parametrically. This result justifies...

One of the drawbacks of using household surveys to investigate macroeconomic issues has been a lack of a dataset that contains both adequate household expenditure data and comprehensive household wealth and income data. This paper compares alternative methods of imputing household expenditures...

In the last 25 years many thousands of formerly state-owned and operated firms have been privatized in developing and transition countries, generating over $400 billion (US) in sales proceeds. In addition, thousands of firms have been transferred by privatization processes in which no money was...

It is sometimes claimed that an increase in aid might cause Dutch Disease—that is, an appreciation of the real exchange rate which can slow the growth of a country’s exports— and that aid increases might thereby harm a country’s long-term growth prospects. This essay argues that it is...

The remarkable stability of low domestic inflation in many countries requires explanation. In this paper, a number of competing hypotheses are evaluated on a stand-alone basis, and all are found to be inadequate. This includes the view that this outcome has been solely the result of more...

In the now conventional view of the inflation process, the New Keynesian Phillips Curve (NKPC) captures most of the persistence in inflation. The sources of persistence are twofold. First, the driving process for inflation-the output gap or, more commonly, real marginal cost-is itself quite...

This paper discusses the likely evolution of U.S. inflation in the near and medium term on the basis of (1) past U.S. experience with very low levels of inflation, (2) the most recent Japanese experience with deflation, and (3) recent U.S. micro evidence on downward nominal wage rigidity. Our...

We show that a monetary policy in which the central bank commits to a randomized inflation target allows for potentially faster-expectations convergence than with a fixed target. The randomized target achieves faster convergence in particular in transition environments: those demonstrating...