We study the effect of short-term finance on firm growth and its aggregate implications. Using a unique firm-level dataset of a credit guarantee program in Morocco, we show that firms with guaranteed short-term loans expand their production scale homogeneously and sharply decrease their cash...

It is well known from anecdotal, survey and econometric evidence that the relationship between the exchange rate and macro fundamentals is highly unstable. This could be explained when structural parameters are known and very volatile, neither of which seems plausible. Instead we argue that...

It is well known from anecdotal, survey and econometric evidence that the relationship between the exchange rate and macro fundamentals is highly unstable. This could be explained when structural parameters are known and very volatile, neither of which seems plausible. Instead we argue that...