We explore monetary policy transmission by estimating VAR impulse response functions to illustrate the Belarusian economy's response to unexpected changes in policy and exogenous variables. We find a significant exchange rate pass-through to prices, and interest rate policy following, rather...

Gravity factors explain a large part of Foreign Direct Investment (FDI) inflows in Southeastern Europe a region not comprehensively covered before in econometric studies but host-country policies also matter. Key are policies that affect relative unit labor costs, the corporate tax burden,...

This paper examines the evolution, and impact on stabilization, of macroeconomic policies in Armenia during 1994-96. Fiscal and monetary policies have been effective in stabilizing the Armenian economy and facilitating significant growth, although they have not always worked in cohort....

This paper discusses the foundations for a medium-term fiscal framework for Bulgaria, a transition economy aspiring to join the European Union. The paper argues that a well-designed framework can help to enhance the credibility of macroeconomic policies and facilitate preparations for EU...

Gravity factors explain a large part of Foreign Direct Investment (FDI) inflows in Southeastern Europe - a region not comprehensively covered before in econometric studies - but host-country policies also matter. Key are policies that affect relative unit labor costs, the corporate tax burden,...

This paper explores the econometric implications of learning behavior. In an illustrative model the government maximizes the discounted sum of tax revenues subject to the constraint imposed by a Laffer curve involving a parameter initially not perfectly known but about which Bayesian learning...