This paper proposes a “before-and-after” approach to empirical examination of the relationship between democracy and growth. Rather than the commonly used cross-country regression method, this paper compares the economic performances of forty countries before and after they became...

Macroeconomists traditionally focus on the aggregate consequences of disinflationary monetary policy, not its distributional effects. This paper considers these distributional effects. The evidence indicates that contractionary monetary policy harms interest rate-sensitive industries by...

This paper analyses the consequences of the Nixon Administration’s policy of wage-price controls and finds that the controls were essentially ineffective in reducing inflation.

We examine a model that generalizes the standard buffer-stock model of savings to accommodate durables, nondurables and a collateralized liquidity constraint, with and without adjustment costs in the durables market. Since there is no known analytical solution to the model, we solve it...

The enterprise where work sharing is carried out can achieve corresponding unemployment benefits. The efficiency wage theory considers that unemployment rate may increase productivity, But after the productivity reaches 100%, the productivity is still 100% when the unemployment rate arises...

Potential costs and benefits of a monetary union for the four MERCOSUR countries Argentina, Brazil, Paraguay and Uruguay are compared. Particular emphasis was put on the traditional and new approaches to optimum currency area theory which were reviewed and analyzed with respect to their validity...

We study the implementation of constrained-efficient allocations in labour markets where a basic coordination problem leads to an equilibrium matching function. We argue that these allocations can be achieved in equilibrium if wages are determined by ex post bidding. This holds true even in...

Based on the theories of Development Power([18]-[20]) and Partial Distribution([21]-[24]), and combining with the actual economic development, this paper discusses the main ways how the Development Power (DP) is accumulated or released, establishes the analytic models of DP and the model of...

Using Minsky (1986), this paper attempts to answer two questions: (1) How does policy affect real and nominal variables? and (2) How should monetary policy be conducted so as to improve the performance of the economy? Minsky asserted that rising interest rates, brought about by contractionary...

A panel data set for six Central and Eastern European countries (the Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia) is used to estimate the monetary exchange rate model with panel cointegration methods, including the Pooled Mean Group estimator, the Fully Modified Least Square...