"According to the conventional wisdom, when an economy enters a recession and nominal prices adjust slowly, the monetary authority should devalue the domestic currency to make the recession less severe. The reason is that a devaluation of the currency lowers the relative price of non-tradable...

This report is the sixth in an annual series assessing development issues. It reviews recent trends in the international economy and their implications for the developing countries with a special focus on the management and institutional aspects of development. The early recovery in the world...