The author aims to empirically determine the significant factors that affect the levels of budget deficits of central governments across time and across countries. He empirically tests two prominent theories of budget deficits-the Barro (1979) tax-smoothing approach, and the still-untested...

In analyzing the institutional environment for macroeconomic management, the author discusses monetary policy, fiscal policy, and subnational borrowing. In analyzing the macroeconomic dimensions of securing an economic union, he discusses the regulatory environment, tax coordination, transfer...

The federal authority for macroeconomic management in Brazil has experienced a profound change as a result of the institutional changes that culminated with the promulgation of a new Federal Constitution in October of 1988. This paper examines the implications of the new fiscal arrangements for...

The current economic crisis in Argentina is only partly the result of inappropriate domestic policies to cope with the recent external shocks. Years of inappropriate policies have damaged Argentina's economy. Even if no external shocks had occurred, the country would still have to change the...

Korea is an interesting case study in long-term and short-term adjustment. The country's rate of economic growth after 1965 was high at a time of rapid, fundamental economic restructuring. It's open, export-oriented economy was exposed to oil price shocks and interest rate hikes. To keep up the...

Current attempts at reform in Eastern European countries raise important issues of macroeconomic management in the transition from central planning to a market or mixed economy. This paper develops simple models, reviews empirical evidence and discusses policy issues associated with traditional...

By populism, this paper refers to an economic approach that emphasizes growth and income redistribution and deemphasizes the risks of inflation and deficit finance, external constraints and the reaction of economic agents to aggressive nonmarket policies. It analyzes two instances of populism -...

Latvia's experience over the past decade shows that economic growth and real convergence can no longer be assumedto be exogenously driven processes determined by given technological improvements and relatively higher factor returns. Instead, it is an endogenously driven process led by many...

One year is not enough time to draw conclusions about independent Slovenia's prospects, and it may not be easy for other countries to copy Slovenia's model. Slovenia is ethnically homogeneous, culturally and historically compatible with the West, and near (and somewhat protected from)friendly...

The author focuses on the effects of age structure changes on the size of budget deficits of national governments. More specifically, he determines whether differences in age structure can account for the observed differences in budget deficits across countries as well as across time. By way of...