The author provides theoretical and empirical evidence of a negative association between income inequality and real exchange rates. First, he builds a theoretical model showing the transmission mechanism from inequality to real exchange rates. Second, using cross-country data, he demonstrates...

Although theoretical models make distinct predictions about the relationship between financial sector development and income inequality, little empirical research has been conducted to compare their relative explanatory power. The authors examine the relation between financial intermediary...

The Ukraine is now faced with economic crisis on an unprecedented scale. The government has to follow rigorous demand management policies, which entail lowering the population's standard of living. To design policies that protect the poorest and most vulnerable groups in the society, it is...

The literature argues that the presence of multiple veto players (government decisionmakers) with polarized interests increases the credibility of sovereign commitments, but reduces the ability of governments to adjust policies in the event of exogenous shocks that jeopardize their ability to...

Earlier studies of spillovers from international research and development (R&D) suggest how economies benefit from R&D conducted abroad. To the extent that countries importing new technologies do not pay in full for the increased variety in intermediate inputs in production, they are reaping an...

Drawing on experience with direct income-support programs recently introduced in the European Union, Mexico, and the United States, the authors highlight problems that may arise when a developing economy's agricultural sector moves from price-based subsidies to income support programs. They...

The author analyzes the role of federal agricultural credits and subsidies in Russia since the Gaidar reforms of January 1992. Pressure on the budget has led to a significant reduction in federal transfers to the agro-industrial complex. Transfers fell from 10 percent of gross domestic product...

Trade does not stimulate growth in economies with excessive business and labor regulations. The authors examine the effect of openness on growth using cross-country regressions in both levels and changes. Results from the levels regressions imply that increased openness is associated with a...

The authors investigate whether resident enterprise managers have an informational advantage about the countries in which they work. They propose a method for extracting information available to resident managers but unknown to investors and forecasters. They rest their hypothesis of...

The elderly in Russia have often been among those least able to cope with all the changes that have taken place during the transition. Unlike the situation prior to reform-when pensions were stable-they now face considerable uncertainty. If they have not been in poverty, many have been close to...