With quarterly data from Israel and Turkey we estimate generalized impulse response functions to show that inflation has no long-run real effects on consumption, investment and the current account balance. The findings are robust even after allowing for inflation volatility obtained through...

This study tests the relative version of purchasing power parity (PPP) for a set of ten Asian developing countries using a panel cointegration framework. A 'between-dimension' dynamic OLS estimator as proposed by Pedroni is employed. The test results overwhelmingly reject the PPP hypothesis.

In this paper we develop an intertemporal optimizing model to examine the real effects of inflation induced by monetary policy in an open developing economy with external debt and sovereign risk. The economy faces an upward sloping supply curve of debt. In our model, households require real...

In this paper we examine the effects of monetary policy in a two sector dependent economy. The households consume both tradable and non-tradable goods with inelastic labor supply. The economy produces both goods with labor and capital as inputs. Factors of production are mobile across sectors....

The article begins with an examination of the many weaknesses of SAARC, such as its restrictive agenda and its weak Secretariat. The lack of a dispute settlement mechanism within SAARC has impacted adversely on regional peace, security and development. The asymmetrical configuration of the...

The effects of inflation are worked out for a small open economy with Cash-in-Advance (CIA) constraints on bond purchases. If all transactions are subject to CIA constraints, an increase in the inflation rate will reduce savings, bringing about a current account deficit, while the capital stock...