We examine how institutional and policy reforms affect the relationship between entrepreneurship and growth. We perform Arellano-Bond GMM estimations on annual data (over the period 1990-2002) from a large group of developing countries and focus in particular on the interplay between policy and institutional reforms and entrepreneurship. We find that the joint effect of trade reform and entrepr...

1 The Mexican crisis of 1994 and its unprecedented international spillover through global financial markets signaled the dawn of a new era in capital-markets crises that challenged, and defeated, both economists' theories and practitioners' policies. Around that time, there was heated debate as to whether this crisis differed from previous Mexican crises triggered by fiscal indiscipline and rea...

The following is a summary of the accompanying paper, A High Price to Pay: IMF Governance, Management of Developing Country Financial Crises, and Health Impacts, to which readers are referred for full details and supporting argumentation. The paper also includes discussion of possible counter-arguments to democratic reform of the IMF, and the historical context of IMF governance, which are omit...

Most economists and observers place the lack of fiscal discipline at the core of the recent Argentine crisis. This begs the question of how countries like Belgium or Italy (pre-Maastricht) could run large fiscal deficits and accumulate debts far beyond those of Argentina, without experiencing crises nearly as dramatic as that of Argentina? Why is it that Argentina cannot act like Belgium or Ita...

Many emerging market economies have used macroprudential policy to mitigate the risk of financial crises and the resulting output losses. However, macroprudential policy may reduce economic growth in good times. This paper introduces endogenous growth into a small open economy model with occasionally binding collateral constraints in order to study the impact of macroprudential policy on financ...

This article describes a model of financial crisis and explores its implications for public policy. The framework nests the key features of earlier models but is better able to address international architecture questions in a welfare setting. In particular, this framework is used to assess the welfare costs of creditor coordination failure and several recent public policy proposals on reformin...

EGINNING WITH THE stock market crash in October 1929, the United States suffered a series of financial crises that mark the Great Depression. In each crisis, the number of bank failures and the declines in bank reserves, the money stock and economic activity were greater than in the preceding episodes. Many researchers investigating the causes of financial crises during the Great Depression hav...