The paper examines the effects of exchange rate fluctuations on real output and the price level in a sample of 33 developing countries. The theoretical model decomposes movements in the exchange rate into anticipated and unanticipated components. Unanticipated currency fluctuations help to...

This paper sheds light on the quantitative behavioral responses of key economic variables in the Palestinian economy in the face of major economic shocks and draws implications for the choice of an exchange rate regime should a decision be taken to introduce a national currency. Time-series...

Using data for a sample of developing countries, we analyze the effects of external flows, namely migrants' remittances and FDI flows, on real output growth, price inflation, and components of aggregate demand. The historical evidence indicates unstable patterns of FDI inflows to a sample of...

Government spending has often varied with the business cycle to stimulate the economy and to revive economic conditions. However, the state of public finances has often necessitated higher borrowing to finance widening fiscal deficits. Indeed, recent austerity packages around the globe have...

This research shows that the manufacturing sector contains private information advantages for consumer confidence. It examines the consumer confidence--manufacturing link by comparing the U.S. national-level Index of Consumer Sentiment with identically constructed confidence indices from a key...

The paper investigates asymmetry in the slope of the aggregate supply curve in the face of aggregate demand shocks using annual data for ten countries of the Middle East. The evidence is contrasted to a sample of developing countries and a sample of more developed countries. The empirical...