This paper analyzes the macroeconomic adjustment from the crisis in East Asia in a broad international prospective. The stylized pattern from the previous 160 currency crisis episodes over the period from 1970 to 1995 shows a V-type adjustment of real GDP growth in the years prior to and...

A general equilibrium model featuring multiple realistic sources of financial frictions is developed to study how different constraints interact in equilibrium. We highlight, distinguish, and evaluate their differential impacts and rich interactions. The economic impact of financial inclusion...

We use a forty-two country model of production and trade to assess the implications of eliminating current account imbalances for relative wages, relative GDP's, real wages, and real absorption. How much relative GDP's need to change depends on flexibility of two forms: factor mobility and the...

The pronounced and persistent impact of the global financial crisis of 2008 motivates our empirical analysis of the role of institutions and macroeconomic fundamentals on countries' adjustment to shocks. Our empirical analysis shows that the associations of growth level, growth volatility,...

Developing countries made considerable gains during the first decade of the 21st century. Their economies grew at unprecedented rates, resulting in large reductions in extreme poverty and a significant expansion of the middle class. But more recently that progress has slowed with an economic...

Introduction. And yet the Twain Meet: Great Convergence brings the East closer to the West -- Great Divergence and the Rise of the West -- Great Convergence and the Rise of the Rest -- The Great Convergence and Globalization: How the Former Colo-nies Became the World Economic Locomotives --...

In this paper we analyze the evolution of the Mexican economy between 1995 and 1998. The remarkable quick recovery seen in aggregate activity has not been uniform across the economy. The tradable sector has grown strongly, while the non-tradable sector has recuperated only sluggishly. This...

Economic growth across countries during the last 30 years or so has displayed 'dual' divergence between developed and developing countries, and among developing countries. The structural transformation has been either slow or of an anomalous nature. The study addresses these and suggests how...

“A must read for anyone interested in understanding complexities of development process.” -Fakhruddin Ahmed, former Governor of the Central Bank of Bangladesh “Policy makers and general readers including specialists would find this lucid analysis very useful.” - Nurul Islam, Deputy...

This book is the thirteenth volume in the International Papers in Political Economy (IPPE) series which explores the latest developments in political economy. A collection of eight papers, the book concentrates on the deregulation of domestic financial markets and discusses financial...