This paper estimates the output gap in Russia using a utilization-adjusted production function approach, which we argue is preferable to traditional output gap methods. The approach amounts to (1) using available surveys to estimate the "natural rates" of capacity and labor utilization above...

There are several theoretical arguments for why the adoption of a common currency (either a currency union or a currency board) may reduce the exchange rate pass-through (ERPT) to domestic consumer prices. This paper examines a broad panel of 101 countries over the period 1976-2006, using...

There are 22 countries in Sub-Saharan Africa (SSA) with floating exchange rate regimes, de jure. Statistical analysis on monthly data for the past decade reveals that in most cases these exchange rate regimes can be approximated surprisingly well by a soft peg to a basket dominated by the US...

Earlier studies have hypothesized that membership in a common currency arrangement (either a currency union or a currency board) is associated with larger current account imbalances (either deficits or surpluses) for participating countries. This paper examines a panel of 128 countries over the...

I present evidence that exchange rate fluctuations among the world's major currencies significantly affect the business cycles of small open economies. The impact of those fluctuations on any given country depends crucially on its exchange rate regime. The three Baltic countries in Central...

This paper examines two theories about the effects of UN sanctions on trade flows between land neighbors of the target country and the rest of the world. First, there have been claims that sanctions hurt neighbor countries by cutting off trading routes, increasing transportation costs, and...

This paper examines two hypotheses about the effects of UN sanctions on trade flows between land neighbours of the target country and the rest of the world. First, there have been claims that sanctions hurt neighbour countries by cutting off trading routes, increasing transportation costs and...

Yen-dollar fluctuations increase macroeconomic instability in small economies in East Asia. I investigate the choice of an exchange rate regime for these countries so as to minimize the adverse effects of this volatility. I build a sticky-price dynamic model of a small economy whose trade is...

Pritchett (J Econ Growth 5:361–384, <CitationRef CitationID="CR33">2000</CitationRef>) convincingly argued that the difference between investment cost and capital value is of first-order empirical importance especially for developing countries where public investment is the primary source of investment. This paper constructs a public...</citationref>

After a short-lived slowdown in the immediate aftermath of the global financial crisis and a swift rebound, emerging markets (EM) are now entering a period of slower growth. In fact, growth is now lower than the post-crisis peak of 2010-11, as well as the rates seen in the decade before the...