This paper is concerned with three interrelated aspects of financial development in Colombia‐first, the use of monetary correction, which involves the adjustment of various assets and liabilities for changes in the price level; second, the development of efficient capital markets; and, third,...

Recently the World Bank, aid donors, and others have shown greater interest in improving the income prospects of small farmers in LDC's. This interest springs in part from the fact that small farmers are at the bottom of the income ladder in many poor countries (though landless rural workers may...

Students of balance of payments theory are undoubtedly familiar with the various discussions concerning the use of monetary‐fiscal policies to attain internal and external balance. The seminal contributions to this particular branch of balance of payments theory are commonly associated with...

This paper attempts to clarify the issues involved in the recurrent debate on the justification for identifying growth with increased well‐being.

In his classic paper, “A Note on Profit Maximization and Its Implications,” Scitovsky [1943] examines the conditions under which “… the maximizing of profits leads to the maximization of the entrepreneur's satisfaction.” He finds that in order “… that maximum profits should...

The purpose of this paper is to show that three factors, the location, the direction and magnitude of variations in the unemployment rate, will affect the actual rate of inflation. A specific prediction of the expectations‐augmented trade‐off relation between unemployment and inflation may...

In a by now classic article, R.A. Mundell demonstrated that an open economy could maintain internal and external balance without using the exchange rate as a policy tool. This, he showed, could be done by using fiscal policy to produce internal balance, and interest rate policy to produce an...

The objective in this paper is to review several theoretical issues associated with fiscal policy and to test these theories via a reduced form real GNP equation using quarterly U.S. data from 1958 through 1966. Theoretical work by Friedman, Holmes and Smith, and others suggest (for different...

The view has been popular since the early or mid sixties that many developing countries are in the midst of “employment crises” resulting from low and stagnant demand for labour; major manifestations of this crisis are, according to this view, the rising open unemployment rates, falling...

The supply side of the labor market has too often been neglected in considering the effects of minimum wage legislation. Minimum wage effects on unemployment have been studied extensively, and the unemployment rate has been related in turn to the labor force participation rate. But the...