This paper examines the pass-through of exchange rate changes to the domestic prices of imported consumer goods. Two distinct stages can be identified in the adjustment process. First, changes in the exchange rate are passed on to changes in the prices of imports over the docks. Second, these...

We present a model to explain why natural resource windfalls tend not only to lead to slower economic growth but to generate and reinforce authoritarian tendencies in Third World political regimes. In the model, the political elite's power over the populace is derived both from its own wealth...