In this paper we present evidence that capital account reversals have become more severe foremerging markets. Because policy options are limited in the midst of a capital market crisisand because so many countries have already had crises recently, we focus on some of thepolicies that could...

In recent years, many countries have suffered severe financial crises, producing a staggering tollon their economies, particularly in emerging markets. One view blames fixed exchange rates--“soft pegs”--for these meltdowns. Adherents to that view advise countries to allow theircurrency to...

Organizado por: Banco de España

[This item is a preserved copy. To view the original, visit http://econtheory.org/] Dispersion in retail prices of identical goods is inconsistent with the standard model of price competition among identical firms, which predicts that all prices will be driven down to cost. One common...