This annual report covers the period from July 1, 2001, to June 30, 2002, and is prepared by the Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The first of two volumes discusses the World Bank's...

Foreword / Esther L. George -- Introduction / Jonathan L. Willis -- The moderators - James Poterba, Erica L. Groshen -- Customer markets and financial frictions: implications for inflation dynamics / Simon Gilchrist, Egon Zakrajšek -- Commentary / Peter J. Klenow -- The international price...