The chapter contains detailed forecasts to the end of 1989 and medium-term projections to 1992. These are followed by two special sections. The first presents three forecast variants using simulations of our world model GEM. In variant A the G7 prevent the steady decline in the dollar assumed in...

This paper begins by arguing that the 2007-8 credit crunch does not require a fundamental re-evaluation of monetary policy. The crunch occurred because regulation was too lax, and we need to develop new and more effective tools of regulatory control. To focus on current account imbalances or...

In this article we consider two arguments suggesting that monetary authorities in an open economy should target output price inflation and not consumer price inflation. The first suggests that output price inflation corresponds to the distortions caused by price rigidity. The second shows how...