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Why is GDP so much more volatile in poor countries than in rich ones? To answer this question, we propose a theory of …
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Why is GDP so much more volatile in poor countries than in rich ones? To answer this question, we propose a theory of …
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The latest boom in commodity prices fueled concerns about fiscal policies in commodity-exporting countries, with many claiming that it triggered loose fiscal policy and left no funds for a rainy day. This paper examines the links between fiscal policy and terms-of-trade fluctuations using a...
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