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Is the Chinese growth miracle - a remarkably high growth rate sustained for over twodecades - likely to persist or are the seeds of its eventual demise contained in the policiesthat have boosted growth? For all its presumed flaws, the particular approach tomacroeconomic and structural policies...
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Previous research has suggested that pegged exchange rates are associated withlower inflation than floating rates. In which direction does the causality run?Using data from a large sample of developing countries from 1984 to 2000, weconfirm that “hard” pegs (currency boards or a shared...
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This paper outlines a framework for analysing the interaction between financial frictions at the household and firm level, liability dollarization and optimal monetary policy in a small, open economy subject to productivity and capital inflow shocks. It is found that, first, for the shocks under...
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