We analyse the impact of interactions between monetary and fiscal policy on macroeconomic stability. We find that in the presence of sovereign default beliefs a monetary policy, which aims to stabilize inflation through an active interest rate policy, will destabilize the economy if the feedback from debt surprises back to the primary surplus is too weak. This result, which relies on endogenous...

This paper tries to explain why high inflation levels persist during long periods of time, in several countries affected by chronic inflation, without the necessary corrective measures being implemented. Political models of conflict explain these delays as the result of coordination problems caused by collective choice-making mechanisms. The empirical results of a tobit model estimated over a p...

Recent work on optimal policy in sticky price models suggests that demand management through fiscal policy adds little to optimal monetary policy. We explore this consensus assignment in an economy subject to ‘deep’ habits at the level of individual goods where the counter-cyclicality of mark-ups this implies can result in government spending crowding-in private consumption in the short run. We...

Using a small macroeconometric model that examines the determinants of India’s trade and inflation, this paper addresses the effects of a reform policy package similar to those implemented in 1991. Policy simulations using dynamic simulation method compare the responses to devaluation with the responses to tight credit policy. It is shown that the trade balance effects of tight credit policy ar...

The asymmetric unit of the title compound, C(10)H(6)N(4)O(4)S(2), contains two independent but similar mol-ecules. The structure is a triclinic polymorph of the monoclinic structure reported previously [Brito, Mundaca, Cárdenas, López-Rodríguez & Vargas (2007 ▶). Acta Cryst. E63, o3351-o3352]. The most obvious difference between the two polymorphs is the C-S-S-C torsion angle [-80.13 (16), -79....

In this paper, we characterize conditions under which interest rate feedback rules that set the nominal interest rate as an increasing function of the inflation rate induce aggregate instability by generating multiple equilibria. We show that these conditions depend not only on the monetaryfiscal regime (as emphasized in the fiscal theory of the price level) but also on the way in which money i...

Latin American performance during the global fi nancial crisis was unprecedented. Many developing and emerging countries successfully weathered the worst crisis since the Great Depression. Was it good luck? Was it good policies? In this paper we compare growth during the Asian and global fi nancial crises and fi nd that a looser monetary policy played an important role in mitigating crisis. We ...

This paper analyzes the dynamic eff ects of anticipated and unanticipated oil price increases in a small two-country monetary union, which is simultaneously characterized by asymmetric wage adjustments and asymmetric interest rate sensitivities of private absorption. Common external oil price disturbances lead in this asymmetric macroeconomic setup to temporary divergences in output development...

We investigate the effects of IMF stabilization programs, and the reasons behind the unusually high IMF activity and relatively low program completion rates in Latin America. We base our tests on a panel, and distinguish between IMF program approvals and completion. We find that Latin America has higher output costs of IMF programs (especially when completed), no improvement in the current acco...

The title compound, C(19)H(19)N(3)O(3), prepared by condensing 4-amino-anti-pyrine and 4-meth-oxy-2-hydroxy-benzaldehyde in methanol, is the second monoclinic polymorph of this compound which crystallizes in the space group C2/c. The structure was previously reported [Wang, Zhang, Yan, Zheng & Yang (2007 ▶). Acta Cryst. E63, o1245-o1246] in the space group P2(1)/c. The hydroxyl group is disorde...