The authors exploit three-dimensional panel data on prices for twenty seven traded goods, over eighty eight quarters, across ninety six cities in Japan, and the United States, to answer several questions: 1) Does the average exchange rate between countries stray further from zero, than that...

The salient characteristics of emerging market economies coupled with the increasing adoption of inflation targeting in these countries has stimulated much debate about the role of the exchange rate in inflation targeting regimes. The authors aim at shedding more light on this issue by...

To assess the impact of price and trade reform on the Polish market for autos and color televisions, the author has developed a differentiated product model in which consumers maximize utility and firms maximize profits subject to rationing constraints and price controls. This paper focuses on...

The author analyzes the macroeconomic effects of inflation in the nontradables sector of a small open economy to suggest how different macroeconomic policies would facilitate structural adjustment after price liberalization in a transition economy. She uses a Mundell-Fleming rational...

The author examines the role of the stock market as a signal to managers in undertaking capital expenditures. He concludes that while both managerial and market perceptions are integral, managerial perception is of greater importance. The evidence suggeststhat, as a statistic, the Q ratio is not...

The author studies the literature on how agricultural prices and macroeconomic policies affect agricultural supply and how that supply affects the environment. He addresses the question of how effective agricultural incentives are in boosting the agricultural supply, particularly in sub-Saharan...

The Argentine crisis witnessed, among other things, a deposit run, the suspension of deposit convertibility, and a"boom"in the stock market. The authors argue that this boom reflects the cost that depositors were willing to incur to get their money out of the banking system, in light of the...

The authors explore how Korea's financial structure affects the volatility of asset prices. Documented empirical evidence of the relationship between financial structure and financial crisis, sheds light on the relationship between asset price volatility - extreme variations in price - and...

The authors investigate the links between banking crises, and exchange rate regimes, using a comprehensive data set that includes developed, and developing countries over the last two decades. In particular, they examine whether the choice of exchange rate regime affects the likelihood, cost,...

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...