Between 1987 and 1990, Mexico's current account and trade balance deteriorated by more than US$10 billion. Higher investment accounts only partly for this deterioration; nor can it be attributed to the...
Commodity stabilization funds are hard-currency savings to protect against a fall in income for commodity exports in the presence of borrowing constraints. The authors develop the optimal rules for deposits...
Traditional specifications of money demand have commonly been plagued by persistent overprediction, implausible parameter estimates, and highly autocorrelated errors. The authors argue that some of these...
The decline in private savings since 1982 is arguably the most important problem in high debt countries. A reversal of the trend is essential if growth is to be restored. Three factors predominate : 1)...