The paper applies an aggregate supply and demand framework for the study of Israel's brand of stagflation. After a very rapid growth period between 1967-1973 Israel's subsequent share growth slowdown and accelerated inflation seem particularly marked by any international comparison. The...

Using structural VARs, I find that external shocks are an important source of macroeconomic fluctuations in emerging markets. Furthermore, U.S. monetary policy shocks affect quickly and strongly interest rates and the exchange rate in a typical emerging market. The price level and real output in...

This paper takes a first step in analysing how a monetary union performs in the presence of labour market asymmetries. Differences in wage flexibility, market power and country sizes are allowed for in a setting with both country-specific and aggregate shocks. The implications of asymmetries for...