We develop a model to study the macroeconomic effects of public investment surges in low-income countries, making explicit: (i) the investment-growth linkages; (ii) public external and domestic debt accumulation; (iii) the fiscal policy reactions necessary to ensure debt-sustainability; and (iv)...

Do structural reforms that aim to boost potential output also change the distribution of income? We shed light on this question by looking at the broad patterns in the cross-country data covering advanced, emerging-market, and low-income countries. Our main finding is that there is indeed...

The Maastricht inflation criterion, designed in the early 1990s to bring ""high-inflation"" EU countries in line with ""low-inflation"" countries prior to the introduction of the euro, poses challenges for both new EU member countries and the European Central Bank. While the criterion has...