This article studies optimal portfolio decisions with (long-term) liabilities for small-open economy based investors, including the optimality of currency hedging (Walker (2008a)). The representative investor is based in Chile, but results are likely to hold more generally. The problem is set up...

As in much of sub-Saharan Africa, Tanzania has attained rapid economic growth accompanied by only marginal reductions in poverty. Is this mismatch between high economic growth and less significant poverty reduction due to how growth and poverty are measured and reconciled, or more substantial...