This paper provides an explanation of the simultaneous occurrence in developing countries of a large accumulation of external debt, private capital outflows and relatively low domestic capital formation. We consider a general equilibrium model in which two types of government with conflicting...

This paper discusses possible strategies for developing countries in negotiations on trade in services in the ongoing WTO Doha Development Round (DR). The liberalization of service imports (including through direct investment) will generate benefits through higher quality, lower prices, and...

Hans-Werner Sinn plädiert für eine Begrenzung der Notfallkredite, die die EZB Griechenland gewährt, und für die Einführung eine Kapitalverkehrskontrolle durch die griechische Regierung.

The European Monetary Union is experiencing a serious balance-of-payments crisis. Private capital is flowing from the periphery countries into the core countries on a large scale. Public, inter-government credit and Target credit granted by national central banks is replacing private capital to...

Die Europäische Währungsunion steckt in einer tiefen Zahlungsbilanzkrise. Privates Kapital fließt imgroßen Stil von den Peripherieländern in die Kernländer. Um den Fortbestand des Euro zugewährleisten treten öffentliche, intergouvernementale Kredite und Target-Kredite der...

Traditional approaches to the etiology of financial crises focus on the fundamentals of an economy, more specifically on the disequilibrium in the balance of payments. The purpose of this paper is to extend this ‘first generation’ literature of financial crises with a general model that...

We construct an overlapping generations model to study the effect of capital controls on human capital investments and the incidence of redistributive politics in a growing economy. We argue that the conventional wisdom linking higher capital controls to lower growth is reproduced only when an...

De facto (unofficial) dollarization, defined as the holding by residents of assets and liabilities denominated in a foreign currency, is a policy concern in an increasing number of developing economies. This paper addresses the dollarization debate from this perspective, with the goal of setting...