There is a range of formal approaches to the modelling of policy responses. This paper will give a very short summary of the broad approaches, which are currently used, then a new approach will be proposed. The main objective of this paper is to explain the motivation and workings of a new...

This paper investigates changes in the causal structure linking the G-7 short-term rates by using a sequential test for the constancy of the adjustment coefficients in error correction equations. This technique allows us to detect permanent structural breaks in the causal linkages. In this...

This paper reviews the theory of balance-of-payments crises, and its implications for identifying potential leading indicators of crises. It discusses and evaluates three different empirical approaches to balance-of-payments crises: the signalling, discrete-choice, and structural approaches....