This paper surveys policy responses in recent years to capital inflows in a diverse group of countries that are represented by the Netherlands at the IMF Executive Board. Based on the findings from cross-country empirical literature, the paper distills some guiding principles for policy...

A dynamic dependent-economy model is developed to investigate the role of the real exchange rate in determining the effects of foreign aid. If capital is perfectly mobile between sectors, untied aid has no longrun impact on the real exchange rate. A decline in the traded sector occurs because...

This paper examines the effects of policy coordination in a two-country world with endogenous growth and imperfect capital mobility.Public investment and a public consumption good are financed by a source-based capital-income tax. By comparing the cases in which countries do and do not...

This paper develops a tractable two-country model with life-cycle structure to investigate analytically and quantitatively three potential determinants of the U.S. external imbalances in the last three decades: productivity growth, demographic factors, and fiscal policy. The results suggest that...

On July 1, 1990, when capital controls in the European Economic Community were removed, the path was paved for the introduction of the euro. This path was marked by a compromise between two schools of thought-those who assumed that the creation of the European Central Bank would be followed by...

Am 1. Juli 1990 wurde mit dem Wegfall der Kapitalverkehrskontrollen in der Europäischen Wirtschaftsgemeinschaft die erste Stufe auf dem Weg zum Euro genommen. Der Weg dorthin war auch durch einen Kompromiss zwischen zwei Denkschulen gekennzeichnet - derjenigen, die davon ausging, dass der...

Discussions about international capital movements raise extremely important and controversial questions. Why should countries open up their capital accounts, especially considering that unrestricted international capital movement is a relatively new phenomenon? For example, many OECD countries...

The institutional model used in the integration process between the European Union (EU) and Turkey was that of establishment of a customs union under an Association Agreement. In the context of the difficulties that have occurred in the membership negotiations between the EU and Turkey, the...

The aim of this paper is to analyse and evaluate the consequences of the establishment of free movement of capital between Poland and the other EU Member States, from the perspective of ten years of Poland's EU membership. Special attention is paid to the role of intra-EU foreign direct...