This paper examines the potential impact of theCentral America Free Trade Agreement (CAFTA) on macroeconomic fluctuations in Central America in light of Mexico's NAFTA experience. CAFTA and NAFTA share a number of common characteristics as both agreements envisage comprehensive tariff...

The U.S. Federal Reserve (Fed) is expected to start raising policy interest rates in the near term and thus commence a tightening cycle for the first time in nearly a decade. The taper tantrum episode of May-June 2013 is a reminder that even a long anticipated change in Fed policies can trigger...