The median developing country has had significantly higher inflation than the median advanced country since the early 1980s. A model is presented in which a developing country may reduce inflationary expectations by pegging its exchange rate to the currency of an advanced country (or a basket of...

Analysis of cross-sectional data on tourism to Israel during the Intifada period reveals some of the factors driving the behaviour of tourists from different countries. A large part of the heterogeneity in the observed response of different nationalities can be explained by socio-economic...

International aid has an ambiguous effect on the macro-economy of the recipient country. To the extent that aid raises consumer expenditure, there will be some real exchange rate appreciation and a shift of resources away from traded goods production and into non-traded goods production....