The work argues that poor macroeconomic control is an important cause of poor enterprise performance. The authors review the empirical evidence on the relationship between macroeconomic stability and the performance of the real economy both at the aggregate and the project levels, before...

The work argues that poor macroeconomic control is an important cause of poor enterprise performance. The authors review the empirical evidence on the relationship between macroeconomic stability and the performance of the real economy both at the aggregate and the project levels, before...

We analyse deflationary bubbles in a model where money is the only financial asset. We show that such bubbles are consistent with the households transversality condition if and only if the nominal money stock is falling. Our results are in sharp contrast to those in several prominent...

The Fiscal Theory of the Price Level (FTPL) rejects the fundamental 'Ricardian' proposition, that the government budget constraint must hold identically, that is for all admissible values of the variables entering the budget constraint. Accordingly, if the government is to meet its contractual...

This paper analyses the reform progress made in the energy-rich states of the Commonwealth of Independent States (CIS), Azerbaijan, Kazakhstan, Turkmenistan and Uzbekistan (AKTU for short) and contrasts their development to that in the resource-poor countries at the CIS periphery. The main...

Standard macroeconomic theory did not help foresee the crisis, nor has it helped understand it or craft solutions. This columns argues that both the New Classical and New Keynesian complete markets macroeconomic theories not only did not allow the key questions about insolvency and illiquidity...

We propose two new criteria to evaluate the appropriateness of a country joining a larger currency area. The first, asymmetric-shocks-on-its-head, argues that asymmetric shocks to real GDP provide an argument for adopting a common currency. The argument comes in three steps. First, independent...