This survey of the recent literature asks: how important is trade policy for poverty reduction? We consider the effects of openness on poverty in two components: the effect of openness on average income growth, and the effect on distribution for a given growth rate. Evidence from a variety of...

This paper examines KOSPI200 options prices in order to investigate whether implied volatility implicit in options prices foreshadowed the 1997 financial crisis in Korea. A set of call and put implied volatilities are examined for evidence of expectations prior to October 23, 1997 of an...

This paper proposes a new method of measuring the degree of currency misalignment through the use of offshore forward exchange rates. Using default risk adjusted no­arbitrage conditions for forward exchange contracts, we calculate the spot exchange rates and the domestic interest rates that are...

Poland’s macroeconomic performance was strong during the global crisis, supported by sound economic policies. The previous Flexible Credit Line (FCL) arrangements served the Polish economy well and provided adequate insurance against negative spillover risks. Executive Directors...

The external imbalances that accompanied Latvia’s integration into the global economy have generated mixed effects. Stabilizing net foreign liabilities will require an improvement in the goods and services balance. Outward migration from Latvia has raised concerns about social and...

The staff report for the First Review Under the Stand-By Arrangement with the officials of Georgia highlights economic developments and policies. Sustaining economic growth and maintaining confidence in the currency and the financial system within the constraints of available external financing...

This 2007 Article IV Consultation highlights that Bulgaria’s large external imbalance has continued to widen. Driven by massive capital inflows, particularly foreign direct investment inflows, the current account deficit could reach a record level of 20 percent of GDP in 2007. Although...

This paper examines Georgia’s request for an 18-month arrangement for SDR 477.1 million, equivalent to about US$750 million, which would constitute exceptional access. IMF support to the government’s macroeconomic policies is intended to provide the needed financing to rebuild...