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...

The literature on the impact of devaluation on domestic production includes many studies that have used aggregate output data such as real GDP. A few recent studies have began looking at the response of sectoral output to currency depreciation. In this paper we consider eight sectors of the U.S....

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...

This paper examines determinants of private consumption in a sample of developing countries. The empirical model includes income, a proxy for the cost of consumption, and the exchange rate. Anticipated movements in these determinants are likely to trigger adjustment in planned consumption, while...

This paper examines the asymmetric effects of exchange rate fluctuations on real output and price in developing countries. The theoretical model decomposes movements in the exchange rate into anticipated and unanticipated components. Unanticipated currency fluctuations determine aggregate demand...

The main purposes of this article are 3-fold. First, we construct measures of real and nominal effective exchange rates for 14 Middle East and North African countries over the 1970-2004 period. Second, we test the validity of the Purchasing Power Parity (PPP) by applying the ADF and KPSS tests...

Using data for a sample of 50 developing countries, the empirical investigation evaluates determinants and implications of asymmetric price flexibility. Price inflation is characterized by high flexibility to adjust towards full equilibrium. Further, price inflation accelerates flexibly with...