The paper deals with the two parts of the short-run adjustment problem in developing countries: the improvement of the current account and the reduction of inflation, the main cause in both cases being usually a fiscal deficit. It is shown how the two parts are related. Distinctions are made...

In the 1990s, Argentina became known as a paradigm of neo-liberal policies. President Carlos Menem was lauded for his ideological zeal in implementing radical economic reforms. Yet, how much of his behavior was motivated by ideology? How much of it was spurred by political necessity? We argue...

Indicators of government activity must be carefully designed to be relevant, credible and accountable. Frustration with reform pressures suggests that measures of policy activity are not providing accurate information. In fact, indicators of product or labour market regulation fail to measure...