After more than a decade of pro-market reform in Latin America, symptoms of fatigue are evident among all the major players: public opinion polls show that most individuals think the reforms have not been beneficial, policymakers seem to have lost their reform zeal, and neither opinion leaders...

Recent empirical and theoretical literature on the impact of real exchange rate devaluations on economic performance questions the traditional expansionary effect generated within standard Mundell-Fleming models. Contractionary devaluations may arise when firms face maturity or currency...

This paper surveys the theoretical and empirical literature on the role of state-owned banks and also presents some new results and a robustness analysis. The paper shows that state-owned banks located in developing countries have fiscal costs because they are characterized by lower returns than...