Coverage of Russia in western newspapers leaves an overriding impression that the place is corrupt and doomed. Economists and pundits have focused on corruption, and the lack of the rule of law as the main causes of last year's crash. These structural problems definitely exist and they are...

We lay out a small open economy version of the Calvo sticky price model, and show how the equilibrium dynamics can be reduced to a tractable canonical system in domestic inflation and the output gap. We employ this framework to analyze the macroeconomic implications of three alternative monetary...

We lay out a small open economy version of the Calvo sticky price model, and show how the equilibrium dynamics can be reduced to simple representation in domestic inflation and the output gap. We use the resulting framework to analyze the macroeconomic implications of three alternative...