The paper by Faini focuses on the relationship between fiscal policy and interest rates. With reference to the European context, the paper addresses two issues. First, it investigates whether national fiscal policies either affect country specific spreads or the average level of euro-area...

Foreign aid has been on a downward trend since at least the early eighties. Despite the commitments of donor governments, the GDP share of foreign aid for DAC countries has fallen to slightly more than 0,2% in the early part of this decade. The purpose of this paper is to explore the macro...