Underdevelopment is often conceived as being reproduced domestically. This paper emphasizes the international forces that enable the persistence of underdevelopment. We first explore how the currency hierarchy imposes a dependency relation between developed and underdeveloped economies. We...

Persistent external deficits are a recurrent phenomena in low and middle income countries. We define a new empirical measure to identify balance of payment crises related to the accumulation of persistent external deficits. Using a non-parametric difference-in-differences estimator we identify...

This paper scrutinizes the well-known Marshall-Lerner (M-L) condition for a group of OECD countries (non-Asian) and Asian countries from 2000 to 2017. We apply a pooled mean group (PMG) estimator to overcome the shortcomings of the other methods, such as the most famous in the recent...

In September 2022, the diffusion indices of wages and of the order-book level looked quite optimistic – 54% and 53% correspondingly. The diffusion index of output decreased by 11 percentage points, but this year this indicator is particularly unstable. The diffusion indices of the expected in...

In this paper, we investigate the relationship between different loan types and the current account balance along with its sub-components. Our empirical results suggest that a rise in total loans inevitably leads to a deterioration in the current account balance. This relationship is preserved...