In mid-2008, the real effective exchange rate of the dollar was close to its minimum level for the past 4 decades. At the same time, however, the U.S. trade and current account deficits remain large and, absent a significant correction in coming years, would contribute to a further accumulation...

In this study we show that the inflation rate and the current account behaved according to historical regularities, once the international crisis hit Romania in the second half of 2008. Inflation has decreased relatively fast for a long period of time, and the current account deficit has reduced...

This paper analyzes the impact of external price shocks on fiscal policy in Argentina during the last two decades. The paper evaluates, through VAR models with long-term restrictions, the effects of the terms of trade, and the output gap, in revenues, expenditures and the primary fiscal deficit,...