Debt and currency crises are closely interlinked through the government’s intertemporal budget constraint. The default tax and the inflation/devaluation tax can be considered as alternative means of financing. Our empirical analysis finds that high-debt countries choose default rather than inflation/devaluation for financing, while a high money stock reduces the probability of debt crises. Furt...

Using an optimizing model of a small open economy, this paper studies the macroeconomic effects of PPP rules whereby the government increases the devaluation rate when the real exchange rate—defined as the price of tradables in terms of nontradables—is below its long-run level and reduces the devaluation rate when the real exchange rate is above its long-run level. The paper shows that the mere...

This article analyses price shifts after currency devaluation in the Ivory Coast using a time-series modelling approach. Model results identify the liberalisation of the import-rice sector as the key factor for the transmission of price effects. Fixation of the imported rice price as a social compensatory measure hindered the adjustment of prices in the first year after the devaluation. As soon...

The paper analyzes the gender pay gap in private-sector management positions based on German panel data and using fixed-effects models. It deals with the effect of occupational sex segregation on wages, and the extent to which wage penalties for managers in predominantly female occupations are moderated by firm size. Drawing on economic and organizational approaches and the devaluation of women...

Cannabinoid CB1 receptor is abundantly expressed throughout the CNS and is implicated in numerous physiological and behavioral functions, including appetite and feeding. In the present study, wild-type and CB1 heterozygous and homozygous knockout mice were tested on an instrumental outcome-selective devaluation task to assess changes in acquired instrumental response levels for a distinct food ...

This paper estimates a new open economy macroeconomic model for South Korea to determine the output effect of currency devaluations. Three transmission mechanisms are considered: the expenditure-switching, the balance sheet, and a monetary channel associated to a nominal exchange rate target. Devaluations are defined as an increase in this target. This allows to isolate the effects of an explic...

If a person is induced to cease performing a desired action through the threat of punishment, he will experience dissonance. His cognition that he is not performing the action is dissonant with his cognition that the action is desirable. An effective way of reducing dissonance is by derogating the action. The greater the threat of punishment the less the dissonance—since a severe threat is cons...

Implementation and collapse of exchange rate pegging schemes are recurrent events. A currency crisis is often followed by an economic downturn while pegging often begets a boom. In this paper I study why a benevolent central bank should pursue a monetary policy that leads to those recurrent currency crises and subsequent periods of pegging. I show that the optimal policy induces a competitive e...

This paper investigates whether or not the J-curve hypothesis holds in Turkish agricultural sector. The analysis is conducted using the model the most commonly employed in j-curve literature. Based on the data covering the period from 1986: I to 1998: III, our results indicate that, following devaluation, agricultural trade balance initially improves, then worsens, and then improves again. This...

A 32-to-4% sucrose devaluation leads to suppression of consummatory behavior relative to unshifted 4% sucrose controls. This is accompanied by an emotional response inducing memory consolidation. Expression levels of phosphorylated cyclic adenosine monophosphate response element-binding protein (pCREB, a marker of synaptic plasticity) were higher after the first devaluation session than after t...