A central puzzle in international finance is that real exchange rates are volatile and, in stark contradiction to effcient risk-sharing, negatively correlated with cross-country consumption ratios. This paper shows that incomplete asset markets and a low price elasticity of tradables can account...

In this note we demonstrate that in affine models for bilateral exchange rates, the nature of return interdependence during crises depends on the tail properties of the fundamentals' distributions. We denote crisis linkages as either strong or weak, in the sense that the dependence remains or...

This report presents the results of the evaluation of the European Communityu0092s support to private sector development (PSD) in third countries over the period 1994-2003. It aims to contribute to improving the coherence of the Commissionu0092s sectoral approach and also at enhancing coherence...