Books reviewed: Finis Welch (ed.), The Causes and Consequences of Increasing Inequality S. Togan and V. N. Balasubramanyam (eds.), Turkey and Central and Eastern European Countries in Transition Towards Membership of the EMU Yair Mundlak, Agriculture and Economic Growth: Theory and Measurement...

We explore optimal monetary and macroprudential policy rules for a small open economy. Delegating 'lean against the wind' squarely to macroprudential policy provides a more robust policy mix to shock uncertainty—(i) if macroprudential measures exist, there are no significant welfare gains from...

This paper develops a two-country DSGE model to investigate the transmission of a global financial crisis to a small open economy. We find that economies hit by a sudden stop arising from financial distress in the global economy are likely to face a more prolonged crisis than sudden stop...