The focus of this investigation is on the cyclical response of the real wage to demand shocks. This response differentiates the empirical validity of major New Keynesian explanations of business cycles. The empirical evidence, across industrial countries, highlights a moderate positive...

In an open-economy extension of the seminal Solow growth model theory suggests a number of hypotheses to explain a country's experience with debt accumulation. The empirical analysis evaluates theory's implications using time-series data within countries and across countries. For majority of...

In a sample of 32 countries in Latin America and the Caribbean, the evidence indicates the existence of a kinked supply curve, implying positive demand shocks feed predominantly into prices while negative demand shocks mainly affect output. High variability of aggregate demand in these...

We explore a wide range of macroeconomic, fiscal and institutional factors in order to assess their relevance as determinants of financial development in MENA countries. A first interesting result is that bank and non-bank development are affected differently by the determinants under...

On the third anniversary of the Egyptian revolution and against the backdrop of lingering political instability and deteriorating economic conditions, we diagnose the constraints to sectoral growth in Egypt using the 2011 Egyptian revolution as a natural experiment. We combine quantile...

The paper studies the impact of globalization on financial development in a sample of 32 developed and developing economies over the period 1989-2012. Indicators of financial development include three banking indicators (private sector credit, domestic credit, and liquid liabilities) and three...

Using annual data, the paper studies the time‐series evidence regarding the allocation of fluctuations in the exchange rate between demand components, real growth and price inflation in a sample of developing and advanced countries. Subsequently, cross‐country correlations establish the...

Time series analysis of annual data for a sample of developing countries shows the allocation of government spending shocks, both positive and negative, between price inflation and output growth. Cross-country regressions evaluate determinants of the difference in the real effects of government...

The debate over the effectiveness of demand-side stabilizing policies has often centred over the relative effectiveness of monetary and fiscal policies. Demand- and supply-side constraints are both relevant. On the supply side, price flexibility may be the result of structural and/or...

The paper examines channels of interaction between exchange rate shifts and the macroeconomy. Exchange rate shifts are differentiated into anticipated and unanticipated components. Each component affects the demand and supply sides of the economy. Primarily, exchange rate shifts determine export...