What is the pathway to development in a world with less international integration? This paper answers this question within a model that emphasizes the role of demand-side constraints on national development, which is identified with sustained poverty reduction. In this framework, development is...

The inertia of the local-currency prices of traded goods in the face of exchange-rate changes is a well-documented phenomenon in International Economics. This paper develops a framework for identifying the sources of local-currency price stability. The empirical approach exploits manufacturers'...