Across a sample of 34 emerging countries, the evidence shows the frequent existence of a pro-cyclical fiscal impulse. However, the scope for counter-cyclical policy increases with the availability of international reserves, as it enhances credibility and mitigates concerns about the effect of...

The paper analyzes interactions between exchange rate fluctuations and the macro-economy in a sample of developing and developed countries. The effect of currency depreciation is particularly pervasive in decreasing consumption and investment across developing countries. Given the high...

Both time-series and cross-sectional regressions are estimated for 28 private two-digit standard industrial classification (S.I.C.) industries in the United States. Positive and negative aggregate demand shocks have varying effects on each of real output growth, nominal wage inflation, and price...

The paper investigates cyclical fluctuations in the current and financial accounts of the balance of payments and major underlying components for nine industrial countries. Explanatory variables are domestic output growth, price inflation, real exchange rate fluctuations, energy price inflation,...

In a sample of 32 countries in Latin America and the Caribbean, the evidence indicates the existence of a kinked supply curve, implying positive demand shocks feed predominantly into prices while negative demand shocks mainly affect output. High variability of aggregate demand in these...