Terms of Trade Disturbances, Real Exchange Rates and Welfare: The Role of Capital Controls and Labor Market Distortions

Many arguments that have been advanced in favor of maintaining capital control within the EEC have not paid sufficient attention to the welfare consequences of this type of market intervention. Our paper provides a simple, optimizing framework in which the welfare consequences of capital controls can be assessed. Two main issues are considered. First, how do capital controls affect the adjustment of macroeconomic variables to real disturbances? Second, what is the nature of second best arguments for maintaining capital controls given that certain distortions will remain after the European single market is in place in 1992?

International Evidence on Fiscal Solvency: Is Fiscal Policy "Responsible"?

This paper looks at fiscal solvency and public debt sustainability in both emerging market and advanced countries. Evidence of fiscal solvency, in the form of a robust positive conditional relationship between public debt and the primary fiscal balance, is established in both groups of countries, as well as in the sample as a whole. Evidence of fiscal solvency is much weaker, however, at high debt levels. The debt-primary balance relationship weakens considerably in emerging economies as debt rises above 50 percent of GDP. Moreover, the relationship vanishes in high-debt countries when the countries are split into high- and low-debt groups relative to sample means and medians, and this holds for industrial countries, emerging economies, and in the combined sample. These findings suggest that many industrial and emerging economies, including several where fiscal solvency has been the subject of recent debates, appear to conduct fiscal policy responsibly. Yet our results cannot reject the hypothesis of fiscal insolvency in groups of countries with high debt ratios, where the response of the primary balance to increases in debt is not statistically significant.

Primary Surplus Behavior and Risks to Fiscal Sustainability in Emerging Market Countries: A "Fan-Chart" Approach

This paper proposes a probabilistic approach to public debt sustainability analy-sis (DSA) using "fan charts." These depict the magnitude of risks-upside and downside-surrounding public debt projections as a result of uncertain economic conditions and policies. We propose a simulation algorithm for the path of public debt under realistic shock configurations, combining pure economic disturbances (to growth, interest rates, and exchange rates), the endogenous policy response to these, and the possible shocks arising from fiscal policy itself. The paper empha-sizes the role of fiscal behavior, as well as the structure of disturbances facing the economy and due to fiscal policy, in shaping the risk profile of public debt. Fan charts for debt are derived from the "marriage" between the pattern of shocks on the one hand and the endogenous response of fiscal policy on the other. Applications to Argentina, Brazil, Mexico, South Africa, and Turkey are used to illustrate the approach and its limitations. Copyright 2006, International Monetary Fund

The Prospects for Sustained Growth in Africa: Benchmarking the Constraints

A dozen countries had weak institutions in 1960 and yet sustained high rates of growth subsequently. We use data on their characteristics early in the growth process to create benchmarks with which to evaluate potential constraints on sustained growth for sub-Saharan Africa. This analysis suggests that what are usually regarded as first-order problems -- broad institutions, macroeconomic stability, trade openness, education, and inequality -- may not nowbe binding constraints in Africa, although the extent of ill-health, internal conflict, and societal fractionalization do stand out as problems in contemporary Africa. A key question is to what extent Africa can rely on manufactured exports as a mode of "escape from underdevelopment," a strategy successfully deployed by almost all the benchmark countries. The benchmarking comparison specifically raises two key concerns as far as a development strategy based on expanding exports of manufactures is concerned: micro-level institutions that affect the costs of exporting, and the level of the real exchange rate -- especially the need to avoid overvaluation.

The impact of weather on COVID-19 pandemic

Rising temperature levels during spring and summer are often argued to enable lifting of strict containment measures even in the absence of herd immunity. Despite broad scholarly interest in the relationship between weather and coronavirus spread, previous studies come to very mixed results. To contribute to this puzzle, the paper examines the impact of weather on the COVID-19 pandemic using a unique granular dataset of over 1.2 million daily observations covering over 3700 counties in nine countries for all seasons of 2020. Our results show that temperature and wind speed have a robust negative effect on virus spread after controlling for a range of potential confounding factors. These effects, however, are substantially larger during mealtimes, as well as in periods of high mobility and low containment, suggesting an important role for social behaviour

Defendant\u27s Motion for Summary Judgment

The State argues that even viewing all evidence in the light most favorable to the Estate of Sam Sheppard, the Estate cannot demonstrate that: (1) the court has subject matter jurisdiction, and (2) the Estate has standing. The State argues in the alternative that this lawsuit is not time-barred by the statute of limitations and laches. In addition, the Estate has provided no significant probative evidence in support of its claim; it is instead repackaging evidence that has been available for decades and spinning the meaning of scientific data to fit its interest. This argument does not rise to a level sufficient to overcome a motion for summary judgment. Therefore, the State is entitled to judgment as a matter of law since no genuine issue of material fact exists. The State\u27s Motion for Summary Judgment was denied on 01/24/00; see docke

The rise in inequality after pandemics: Can fiscal support play a mitigating role?

Major epidemics of the last two decades (SARS, H1N1, MERS, Ebola, and Zika) have been followed by increases in inequality [Furceri et al. (2020), COVID Economics, 12, 138-157]. In this article, we show that the extent of fiscal consolidation in the years following the onset of these pandemics has played an important role in determining the extent of the increase in inequality. Episodes marked by extreme austerity - measured using either the government's fiscal balance, health expenditures, or redistribution - have been associated with an increase in the Gini measure of inequality three times as large as in episodes where fiscal policy has been more supportive. We survey the evidence thus far on the distributional impacts of the COVID-19 pandemic, which suggests that inequality is likely to increase in the absence of strong policy actions. We review the case made by many observers [IMF (2020), Fiscal Monitor; Stiglitz (2020), Finance & Development, Fall 2020; Sandbu (2020b), Financial Times, 26 November 2020)] that fiscal support should not be withdrawn prematurely despite understandable concerns about high public debt-to-GDP ratios

Keeping Public Debt Sustainable in an Equitable Way

The COVID-19 pandemic has claimed over 5 million lives thus far. This grim figure would have been higher still without the strong and timely fiscal support provided by governments around the globe, including support for health sector and the development and deployment of vaccines. The IMF has noted that “in 2020, fiscal policy proved its worth. The increasing public debt in 2020 was fully justified by the need to respond to COVID 19 and its economic, social, and financial consequences” (Gaspar, 2021). How to keep debt sustainable is becoming a policy imperative, made all the more challenging by the lingering effects of the pandemic, particularly on low-income groups. In this article we summarize our recent work on the distributional effects of past major epidemics in this century prior to COVID-19 and the role that fiscal support played in mitigating these effects (Furceri, Loungani, Ostry and Pizzuto, 2021a; 2021b). The policy message is that more inclusive and targeted fiscal policies are needed in coming years if governments wish to achieve public debt sustainability without exacerbating inequality

The use of prolog in the realisation of digital transfer functions

Systems characterised by general graphs are very flexible because of a given application they offer a great number of degrees of freedom and consequently a great possibility of choice to the designer. This can become a drawback in practice when myriads of cases have to be examined analytically and most of them rejected for a variety of heterogeneous reasons. For such design problems, it appears that logic programming languages are ideally suited because they can implement the heterogeneous rules which describe the desired system in a natural way. An application of the Prolog language to the design of active RC biquad circuits investigated by Mouly in his doctoral thesis illustrates the advantages of such a rule-based approach.<br /

Job strain — Attributable depression in a sample of working Australians: Assessing the contribution to health inequalities

Background The broad aim of this study was to assess the contribution of job strain to mental health inequalities by (a) estimating the proportion of depression attributable to job strain (low control and high demand jobs), (b) assessing variation in attributable risk by occupational skill level, and (c) comparing numbers of job strain&ndash;attributable depression cases to numbers of compensated \u27mental stress\u27 claims. Methods Standard population attributable risk (PAR) methods were used to estimate the proportion of depression attributable to job strain. An adjusted Odds Ratio (OR) of 1.82 for job strain in relation to depression was obtained from a recently published meta-analysis and combined with exposure prevalence data from the Australian state of Victoria. Job strain exposure prevalence was determined from a 2003 population-based telephone survey of working Victorians (n = 1101, 66% response rate) using validated measures of job control (9 items, Cronbach\u27s alpha = 0.80) and psychological demands (3 items, Cronbach\u27s alpha = 0.66). Estimates of absolute numbers of prevalent cases of depression and successful stress-related workers\u27 compensation claims were obtained from publicly available Australian government sources. Results Overall job strain-population attributable risk (PAR) for depression was 13.2% for males [95% CI 1.1, 28.1] and 17.2% [95% CI 1.5, 34.9] for females. There was a clear gradient of increasing PAR with decreasing occupational skill level. Estimation of job strain&ndash;attributable cases (21,437) versus &quot;mental stress&quot; compensation claims (696) suggest that claims statistics underestimate job strain&ndash;attributable depression by roughly 30-fold. Conclusion Job strain and associated depression risks represent a substantial, preventable, and inequitably distributed public health problem. The social patterning of job strain-attributable depression parallels the social patterning of mental illness, suggesting that job strain is an important contributor to mental health inequalities. The numbers of compensated \u27mental stress\u27 claims compared to job strain-attributable depression cases suggest that there is substantial under-recognition and under-compensation of job strain-attributable depression. Primary, secondary, and tertiary intervention efforts should be substantially expanded, with intervention priorities based on hazard and associated health outcome data as an essential complement to claims statistics