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readers to combine knowledge of real world facts—of institutions, traditions, and culture, in addition to statistics - with … theory. One focus of this collection is on the role of credibility in policy-making. Calvo analyzes the origins and … macroeconomic consequences of credibility problems. He also shows how monetary and trade theory can fail when the public does not …
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This paper reviews the experience with capital controls in industrial and developing countries, considers the policy issues raised when the effectiveness of capital controls diminishes, examines the medium-term benefits and costs of an open capital account, and analyzes the policy measures that...
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