This paper considers whether the Phillips curve can explain the recent behavior of inflation in the United States. Standard formulations of the model predict that the ongoing large shortfall in economic activity relative to full employment should have led to deflation over the past several...

During the period 1973-78, no SDR allocations were made. This period therefore presents researchers with an opportunity to study how countries adjust their SDR holdings in the absence of supply shifts caused by new allocations. Non-oil developing countries are particularly useful to study,...

The dynamics of the real exchange rate and the price of equity for a small open economy are analyzed using an optimizing model in which the process of capital accumulation entails adjustment costs. The analysis demonstrates how changes in fiscal policies or world interest rates can generate...