We argue that there are sound theoretical reasons for believing that an inflation targeting central bank might improve macroeconomic performance by reacting to asset price misalignments over and above the deviation of, say, a two-year ahead inflation forecast from target. In this paper, we first...

The International Monetary Fund and the World Bank were created fifty years ago. Have they adapted efficiently to the changes that have taken place in the international monetary system since then, or should one contemplate significant changes in their statutes perhaps by merging the two...

A central aspect of the recent debate on global imbalances and the US current account deficit is the role of the exchange rate peg being followed by China and other Asian economies. While one view has stressed the need for Asian currency appreciation, another focuses on the importance of fiscal...

The paper analyzes the determinants of current account imbalances under floating exchange rates. An important goal of the analysis is to provide a framework within which the sources of, and the remedies for the current account imbalances between the United States, Japan, and the Federal Republic...