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This paper analyses the international dimension of fiscal policy using a small open economy framework in which the government finances its spending by levying distortionary taxation and issuing non-state-contingent debt. The main finding of the paper is that, once the open economy aspect of the...
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Empirical evidence indicates that high oil price volatility has a dampening effect on output in countries that import … of commodity price volatility in commodity exporting countries accounting for both oil and non-oil commodities. To that … aim, we construct country specific commodity price indices for a sample of oil and non-oil commodity exporters. We find a …
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This paper proposes a new perspective on international capital flows and countries' long-run external asset position. Cross-sectional evidence for 84 developing countries shows that over the last three decades countries that have had on average higher volatility of output growth (1) accumulated...
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In this paper we model foreign capital flow to Brazil as stemming from an investment decision that whose risk depends on the expected rate of loss of foreign reserves. This motivates the estimation of an empirical relationship between these two variables that is valid for "normal" periods (when...
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