Assessing the impact of different nominal anchors on the credibility of stabilisation programmes

The paper compares the impact of announcing exchange-rate-based versus money-based stabilisation programmes in a cross-section of countries. The analysis finds that the effect of announcing exchange-rate-based programmes is more credible, in terms of reducing inflation inertia, than the outcome associated with implementing money-based programmes. But the gap between the magnitudes of the impacts from implementing the different strategies has been falling since the 1970s.Inflation stabilisation; credibility; nominal anchors; IMF programmes

PPP, RANDOM WALKS, AND UIP AFTER INTEREST RATE LIBERALISATION IN A SMALL DEVELOPING ECONOMY

This paper investigates the impact of interest rate liberalisation on exchange rate expectations in the Dominican Republic (DR). The research employs a nested purchasing power parity, random walk, and uncovered interest parity specification that facilitates the recovery of the fundamentals behind the exchange rate expectations formation mechanism. The findings reveal that the most significant driver of exchange rate expectations is the interest rate differential between the DR and its main trading partner -the United States. These results are of relevance for the design and implementation of financial reforms and exchange rate policy alike, and in anticipating abrupt exchange rate movements.

Balancing the economic burden

French version available in IDRC Digital Library: Choisir le cap de l'économie TanzanienneSpanish version available in IDRC Digital Library: Proyectando una economia de emergenci

After the harvest

French version available in IDRC Digital Library: Pêche au lac Victoria : à qui les profits?Spanish version available in IDRC Digital Library: Mas fresco, mejor pesqueria en el Lago Victori

Economie : un casse-tête à refaire

Version anglaise disponible dans la Bibliothèque numérique du CRDI: Charting an emerging economyVersion espagnole disponible dans la Bibliothèque numérique du CRDI: Proyectando una economia de emergenci

Après la récolte

Version anglaise disponible dans la Bibliothèque numérique du CRDI: Fresher the better : life in the Lake Victoria fisheryVersion espagnole disponible dans la Bibliothèque numérique du CRDI: Mas fresco, mejor pesqueria en el Lago Victori

A recursive cointegration test using the Kalman filter and its application to fiscal equilibrium in the Dominican Republic

This letter puts forward a recursive version of the Engle and Granger cointegration test, using the Kalman filter, for the analysis of fiscal equilibrium in the Dominican Republic. The method employs a time-varying-coefficient augmented Dickey and Fuller test and finds that government income and spending display movements both toward and away from equilibrium that can be associated to various policy reforms and shocks to the economy.

Después de la cosecha

Versión en inglés disponible en la Biblioteca Digital del IDRC: Fresher the better : life in the Lake Victoria fisheryVersión en francés disponible en la Biblioteca Digital del IDRC: Pêche au Lac Victoria : à qui les profits