Instrumenting for sovereign corruption, we find that Transparency International's Corruption Perceptions Index which 'ranges from 10 (highly clean) to 0 (highly corrupt)', is a significant predictor of the Standard and Poor's sovereign bond ratings ranging from 1 (Sovereign Default) to 22 (AAA)...

The authors examine the effects of consumption subsidies, public enterprise pricing, and price controls on the real exchange rate. Under plausible assumptions, they show that permanent reform in these areas leads to a permanent real exchange rate appreciation. An empirical application to the...

The construction and repair of highways are becoming very important in these days of crumbling infrastructure. Costs for these projects have continued to increase. In order for contractors to stay competitive, it is essential that their construction operations be as productive as possible. Money...

The Federal Reserve has increased communication about the future path of the federal funds target rate over time. The use of forward guidance as a policy tool has raised questions about changes in how it influences the economy.

The Federal Reserve increasingly has relied on forward guidance about the future path of the federal funds rate to implement monetary policy since the federal funds target rate reached its effective lower bound. The enhanced use of forward policy guidance has drawn attention to any change in its...