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...

This paper shows that the debt burden of households, as measured by the debt service to income ratio, is helpful in forecasting the future growth of consumption expenditures. Using data for the United States over the period 1960-97, I find a significant negative relationship between the...