This Selected Issues paper estimates both Guatemala’s potential output and output gap using a wide range of econometric techniques. The analysis suggests that Guatemala’s potential output growth is about 3.5 percent for the whole sample period and that the output gap is almost...

Output gap estimates are subject to a wide range of uncertainty owing to data revisions and the difficulty in distinguishing between cycle and trend in real time. This is important given the central role in monetary policy of assessments of economic activity relative to capacity. We show that...

The macroeconomic policy response in India after the North Atlantic financial crisis (NAFC) was rapid. The overshooting of the stimulus and its gradual withdrawal sowed seeds for inflationary and BoP pressures and growth slowdown, then exacerbated by domestic policy bottlenecks and volatility in...

In this study we show that the inflation rate and the current account behaved according to historical regularities, once the international crisis hit Romania in the second half of 2008. Inflation has decreased relatively fast for a long period of time, and the current account deficit has reduced...

ILO pub-WEP pub. Working paper discussing trade liberalization trade policies capable of promoting the integration of developing countries into the international economic system - comments on shortcomings of economic development associated with import substitution; examines the need to combine...

ILO pub-WEP pub. Working paper, comparison of the effects of trade and external debt on employment and income distribution in Ghana and Nigeria, 1970-1986 - examines economic growth trends in agricultural production and manufacturing, export earnings, public expenditure and basic needs...

In the preceding period, like nowadays, inflation targeting as a strategic frame for implementing monetary policy is subject to critics from the economists. Those critics refer primarily to an excessive focusing of the creators of monetary policy to “inflation only” targeting and neglecting...

This paper asks if when the monetary authority works under the rules of Currency Board, the weakness of IS–LM model for analysis the influence of monetary policy on the aggregate output reveals. The main result is that by the Currency Board the weakness does not exist. In this case the...

In this paper we explore the effects of monetary policy on the number of firms, firm market size, ination and growth in a Schumpeterian growth model with endogenous market structure and cash-in-advance (CIA) constraints on two distinct types of R&D investment - in-house R&D and entry investment....