Does Austerity Go Along with Internal Devaluations?

Optimal Devaluations

We analyze optimal policy in a simple small open economy model with price setting frictions. In particular, we study the optimal response of the nominal exchange rate following a terms of trade shock. We depart from the New Keynesian literature in that we explicitly model internationally traded commodities as intermediate inputs in the production of local final goods and assume that the small o...

Does COPI Go Both Ways?

from one Golgi complex to another under conditions that * Department of Molecular Cell Biology mirrored the conditions required for vesicle formation, Howard Hughes Medical Institute docking, and fusion. However, to many investigators University of California in the field, it remained uncertain whether the vesicles Berkeley, California 94720-3202 represented an obligatory intermediate in intra-...

Where Does GOTO Go to?

Although GOTO has long been criticized for being \unstruc-tured" and causing \unreliable" programs, it is still in use and even modern languages like Ada95 provide GOTO. Why? This paper presents the results of a study in which we examined 316 MB of Ada source code in order to nd the frequency and typical applications of GOTO. It turned out that about 99% of all examined les do not contain any G...

Does contour dynamics go singular?

Are Crisis-Induced Devaluations Contractionary?

Why are some currency crises followed by economic contractions while others are not? This paper is an attempt at answering this query. In particular, we investigate two closely related questions. First, we explore whether there is a difference in the output effects of a devaluation during “normal” periods versus crises ones; after all, during noncrisis periods, real exchange devaluation is seen...