We study optimal fiscal policy in a small open economy characterized by two main frictions – incomplete financial markets and an inability of the government to commit to policy. Our main contribution is to show that in this environment, the best sustainable policy can amplify and prolong shocks to output. In particular, the government’s credibility not to expropriate foreign capital endogenousl...

The objective of this document is to provide a sketch of my research topics and a brief description of my current work. The purpose of my thesis is to study the impact of US dollars as an international currency on the world economy, especially on US itself and the emerging market countries. Section 1 discusses the motivation and introduces the topics to be examined. Section 2 presents the paper...

We show how to decentralize constrained efficient allocations that arise from enforcement constraints between sovereign nations. In a pure exchange economy, these allocations can be decentralized with private agents acting competitively and taking as given government default decisions on foreign debt. In an economy with capital, these allocations can be decentralized if the government can tax c...

In South Africa, long-term interest rates have often been high in real terms and relatively volatile, although they declined somewhat in recent years (Figure 13.1). This chapter attempts to show that this decline is due not only to an improved external capital market but also to the strong progress made in macroeconomic management. In particular, the implementation of policy measures, such as d...

In Fiji, imports as a share of GDP has been rising strongly, particularly over the past three decades. Over these years imports have fluctuated considerably, generally in line with fluctuations in aggregate demand. Fiji is a small island state, heavily dependent on external trade for many of our essential goods. It is vital, therefore to always ensure that we have adequate foreign reserves to p...

Venezuela possesses the Western Hemisphere’s largest conventional proven oil reserves at 77.8 billion barrels and has proved natural gas reserves of 148 trillion cubic feet, the largest in Latin America and the seventh-largest in the world. Despite these abundant resources, economic performance of the country has been poor. Oil production declined steadily every year beginning in 1973 and by th...

This study ascertains the associations of macroeconomic variables with external debts, impacts debts on annual GDP, GDP growth, and per capita income, timing effects economic Bangladesh. The analysis is inferential eight hypotheses have been set tested regression analysis. To complete study, chi-squared test Durbin-Watson used along trends growth results reveal that budget deficit, current acco...

Plant seeds naturally accumulate storage reserves (proteins, carbohydrates, lipids) that are mobilized during germination to provide energy and raw materials to support early seedling growth. Seeds have been exploited as bioreactors for the production to foreign materials, but stable, high level expression has been elusive, in part due to the intrinsic bias for producing the natural reserves in...

1 Federal Reserve Bank of Atlanta E C O N O M I C R E V I E W Third Quarter 2001 diversify their portfolios into foreign markets. Indeed, the net new cash flow into international funds in 2000 was $49.9 billion (ICI 2001). Most advocates of international investing focus on the diversification benefits of adding assets that have relatively low correlations with domestic stock portfolios. Another...

Frank Morris was a good friend, a fellow-navigator in World War II, a fine economist, and a first-rate central banker. I am pleased to participate in this conference honoring him. First, this interesting and intensively researched paper by Richard Cooper and Jane Little is really mistitled. It goes far beyond the influence of foreign events and institutions on U.S. monetary policy. It deals wit...