Summary How do international policies on aid, trade, and factor movements affect the international distribution of income? We calculate the impact by world decile of the actual level of aid flows and the effect on income of merchandise trade restrictions by high-income countries. We find that...

In recent years, an ample literature has emerged on the evolution of global inequality during the last two decades. A few stylized facts emerge. If one weights countries by their population, then inequality across countries has declined. However, if one treats countries equally – as in the...

The actual distribution of world income across countries is extremely unequal, much higher than the within country inequality faced by most countries. The question studied in this paper is: How do international policies on aid, trade, and factor movements affect the international distribution of...

This paper analyzes the spillover effects of U.S. monetary policy announcements on emerging market economies since end-2008, the period coinciding with the use of unconventional policy measures. Monetary policy surprises are measured by changes in two-year Treasury yields in short windows of...

This paper explores the hypothesis that the credibility of economic policy making in Argentina (or lack thereof) has impacted the volatility of economic performance. To establish the link, a historical review of economic policy making and economic outcomes over the quarter century is presented,...

The traditional theory of fiscal federalism assigns the role of macroeconomic stabilization to the federal government. In addition to this long-standing theoretical result, there is empirical observation that federal governments in developing countries typically have cheaper and more stable...