Broadly speaking, European integration affects growth by stimulating the accumulation of physical capital and/or knowledge capital (i.e. technology). This paper surveys existing empirical work on integration and growth concluding that there is strong evidence that trade liberalization promotes...

The stumbling-block argument asserts that regionalism hinders MFN tariff cutting. If this was of first-order importance over previous decades, we should see a negative relationship between the level of MFN and preferential tariffs, i.e. MFN and PTA tariffs should be substitutes. Using tariff...

In a mode1 à la Rogoff, with independent fiscal (AF) and monetary (AM) authority, the Nash equilibrium is characterized by an infiation rate and by a fiscal surplus lower than the ones desired by the two authorities. In the contract of performance approach, the coordination problem between...

One of the most widely supported arguments against attributing supervision functions to a central bank is based on the conflict of interest hypothesis.However, in some circumstances, financial supervision enhances central bank's independence. In fact, when a central bank is goal independent, it...

This paper presents five theoretical openness-and-growth links that can account for trade-induced investment-led growth. The links are all demonstrated with neoclassical growth models developed in the context of trade models that allow for imperfect competition and scale economies. This sort of...

Simultaneous bank and exchange rate crises: the cases of Mexico (1994) and South-East Asian countries (1997) In recent years financial crises have been characterised by the simultaneous occurrence of exchange-rate and bank crises. This paper shows how, in a context of highly integrated...

In the period just after the Second World War, Italy experienced an increase in labour productivity bigger than the increase in real wages. The recurrent explanations of this phenomenon build on the weakness of labour trade unions due to a large “reserve industrial army”. With the passing of...

This paper presents five theoretical openness-and-growth links that can account for trade-induced investment-led growth. The links are all demonstrated with neoclassical growth models developed in the context of trade models that allow for imperfect competition and scale economies. This sort of...