Although an optimal exchange rate regime is dependent on country’s characteristics, intermediate regimes, especially the Managed Floating Plus (MFP) regime and Basket, Band and Crawling Peg (BBC) regime, seem to be viable options for developing countries. This work aims to analyze the issue of...

Despite the growing literature, central bank independence (CBI) is still one of the most controversial and frequently discussed issues in macroeconomics. This paper re-examines the role of central bank independence in macroeconomic outcomes, seeking to add to the existing empirical literature in...

This study estimates an aid-growth model and an aid-fiscal model to quantify the effects of foreign aid on GDP growth and fiscal behavior in Bangladesh over the 1973-1999 period. The aid-growth model applies the cointegration method to a neoclassical growth model and finds that aid has marginal...

Uruguay has consolidated economic gains, supported by strong macroeconomic policies and a broadly favorable external environment. Growth has exceeded expectations, unemployment has reached record lows, and poverty has continued to fall, while economic vulnerabilities have been significantly...

Sound policies and favorable external conditions have led to a strong economic recovery, but important challenges lie ahead. Uruguay’s near-term economic prospects are generally favorable. The main short-term challenge is rising inflation in the wake of vigorous growth and capital...

This 2005 Article IV Consultation highlights that the economic activity in Jamaica has been adversely affected by shocks. Real GDP contracted sharply in late 2004 following the devastating effects of Hurricane Ivan. Thereafter, while output recovered, it was dampened by the poor performance of...