With full stock/flow accounting respected, the two-country open economy portfolio balance model has just two independent equations for asset market clearing. It can determine home and foreign interest rates but not the exchange rate. If asset market equilibria vary smoothly over time, the...

A principal message of this paper is that external financial crises are not caused by an alert private sector pouncing upon the public sector’s foolish actions such as running an unsustainable fiscal deficit or creating moral hazards. They are better described as private sectors (both domestic...

Half the people and two-thirds of the countries in the world lack full control over their own economic policy decisions. To a great extent, expatriate "experts" managed by industrial country nationals and based in Washington DC regulate their macroeconomics, investment projects, and patterns of...

This paper takes up a question frequently raised but rarely addressed empirically - do macroeconomic policy changes and exogenous macro shocks have significant impacts on poverty and income inequality more generally? For 15 countries in Latin America and the Caribbean over the past two decades,...