Financial crises accompanied by banking crises often entail heavy fiscal legacies. For the U.S., for example, the gross government debt to GDP ratio exceeded 100 % in 2012. Due to the unsustainability of public debt, both in the U.S. and in other advanced countries, moves towards a substantial...

Real exchange rates influence the competitiveness of tradable goods produced in a country, and thus the latter’s external balance. In the short-run, real exchange rates are influenced by real, as well as monetary variables. With a view to maintain their competitiveness in international...

We test the relationship between the current account and fiscal policy for a group of small open developing economies with fixed exchange rates some of which are oil exporters. Specifically, we test the viewpoint of a Ricardian infinite-horizon representative agent model in which lower public...

Die vorliegende Analyse der österreichischen Warenverkehrsbilanz diskutiert sowohl die zeitliche Entwicklung der Handelsbilanz und ihre zugrundeliegenden Faktoren als auch die bilateralen Bilanzen mit den wichtigsten Handelspartnern und die Handelsbilanz in ausgewählten Warengruppen. Mit...

This paper traces the evolution of the Federal Reserve and its engagement with the global economy over the last three decades of the 20th century: 1970 to 2000. The paper examines the Federal Reserve’s role in international economic and financial policy and analysis covering four areas: the...

This paper first describes the ingredients the present crisis in the euro zone and then evaluates the key options that policy makers face in resolving the crisis and avoiding similar crises in the future. I argue that the crisis should not be seen as caused by government profligacy alone. In...

Gross domestic product continued to grow in 2002, faster than in the economies of most of the Czech Republic's major partners, albeit at a slower pace than in 2001. The major driving force of economic growth was private consumption, followed by government consumption. Investment demand...

Domestic demand, especially private household consumption and fixed capital investment was the main engine of continuing economic growth. At the same time, strong domestic demand did not provoke regular inflationary pressures. Inflation has stopped to be a threat of macroeconomic stability since...

Economic growth was higher than expected in 2000. While in 1999 the upturn of Czech economy was driven mainly by exports, in 2000 domestic demand have taken over the role of main pro-growth factor. Czech industry showed great progress in 2000: rapid growth was accompanied by ongoing...

In the first part of this article is discussed a theoretic comparison of a standard Keynesian (income) approach and a monetary approach to the balance of payments. The monetary adjustment process is based on the monetarist assumption that money market imbalances affect the real economy and...