We study the macroeconomic effects of fiscal policies in an open economy. We emphasize two transmission mechanisms: the cost channel, by which wage government spending and labor taxes raise the real wage firms must pay, and the exchange rate channel, by which the nominal exchange rate shifts...

We examine the link between the net foreign asset position, the trade balance and the real exchange rate. In particular, we decompose the impact of a country's net foreign asset position ('external wealth') on its long-run real exchange rate into two mechanisms: the relation between wealth and...

This paper reviews the demands of developing countries in the new round of WTO agricultural negotiations which began in Geneva in March 2000 based on the submissions to the Special Session up to November 2000. Two issues of principle are identified. The first is the developing country demand for...

This paper empirically investigates the relationship between public infrastructrue and international capital flows. Out of a sample of thirty countries a cross-sectional econometric model is constructed to estimate the effects. Different components of infrastructure variables are tested in...

This paper develops an empirical model of bilateral exchange rate volatility. We conjecture that for developing economies, external financial liabilities have an important effect on desired bilateral exchange rate volatility, above and beyond the standard Optimal Currency Area (OCA) factors. By...

Tariff rate quotas (TRQs) were introduced as a new market access instrument in the Uruguay Round Agreement on Agriculture. The purpose of this paper is to examine the case for using this instrument to target improved market access for developing country agricultural exports, using the EU as a...

This paper reviews the roles of monetary and fiscal policies in macroeconmic stabilization. In particular, we take acount of interactions between the two policy instruments and ask whether the extent of macroeconomic and policy uncertainty has changed over time, especially with the advent of...

Forthcoming in H. Kierzkowski (ed.), From Europeanization of the Globe to the Globalization of Europe (Palgrave, 2002).

This paper investigates the effects of exchange rate regimes and alternative monetary policy rules for an emerging market economy that is subject to a volatile external environment in the form of shocks to world interest rates and the terms of trade. In particular, we highlight the impact of...