We analyze, in this paper, the optimality of pro-cyclical monetary policy in the presence of informal sector. Our findings suggest that monetary tightening only in case of severe shock with high leverage ratio and that conventional monetary policy favors both the formal and informal sectors...

An article about the impact of digital currency into the global economy processes. The author analyzes working principle of cryptocurrency and electronic commerce, as well as expected economic and scientific implications of integration cryptocurrency into economy of Russian Federation.

This paper examines the Saving-Investment (S-I) relationship and the extent of capital mobility in India during the period 1970-2010. We find that S-I are cointegrated, but the error correction model exhibits structural instability on the onset of balance of payment crisis in the 1990s and...

We present new data documenting European capital issues in major financial centers from 1919 to 1932. Push factors (conditions in international capital markets) perform better than pull factors (conditions in the borrowing countries) in explaining the surge and reversal in capital flows. In...

Transport sector is essential for every country and its society. It connects good and services to markets, it gives access to jobs, education, healthcare; it is the key of economic growth, contributing to the prosperity of a nation. The present article stresses the importance of indicators in...

We examine how workers’ remittances impact on the current account. In doing so, we focus on how remittances affect the sustainability rather than size of current account balances. We find that the presence of remittances make it more likely that exports and imports are cointegrated thereby...

This paper builds a dynamic stochastic general equilibrium (DSGE) model for Latvia that would be suitable for policy analysis and forecasting purposes at Latvijas Banka. For that purpose, the DSGE model with financial frictions of Christiano, Trabandt and Walentin (2011) is adapted to Latvia's...

This paper studies the dynamics of international trade flows at business cycle frequencies. We show that introducing dynamic considerations into an otherwise standard model of trade can account for several puzzling features of trade flows at business cycle frequencies. Our insight is that...

This article analyzes the participation of companies in the South-South Cooperation (SSC) of Brazil and Chile during the last decade. It proposes that economic interests attract the private sector into SSC -no exclusion being made of solidarity reasons- and that such interests are in line with...

Payne and Kumazawa (2005) examine the effect of domestic savings, foreign aid, the evolution of capital mobility over time, and openness on investment rates using a panel of sub-Saharan African countries. They find that capital mobility has increased over time and that foreign aid and openness...