fall in response to a transitory terms of trade shock, depending on the values of the intertemporal elasticity of …

. The relationship between these variables is theoretically ambiguous: an adverse transitory terms of trade shock can either …

sector development acts as a shock-absorber in poor countries, dampening the transmission of terms of trade shocks to growth … volatility. Expanding the sample to 121 developing countries confirms this result, although this role of shock-absorber fades … away as economies grow richer. Stock market development, by contrast, appears neither to be a shock-absorber nor a shock …

rather than a greater 'effort' to save it. Finally, we find evidence that, while savings during the boom help to increase … post-boom income, the composition of such savings matters. Specifically, in past episodes, savings allocated to foreign …

. Current accounts experience, on average, a contemporaneous variation of only about 1\2 of the magnitude of the price shock …

We study the optimal foreign exchange (FX) intervention policy in response to a positive terms of trade shock and …