Government spending on infrastructure has recently increased sharply in many emerging-market economies. This paper examines the mechanism through which public i

This paper examines the relationship between fiscal policy and the current account, drawing on a larger country sample than in previous studies and using panel

This article analyzes the theory of equilibrium real exchange rates and defines misalignment as a deviation of the real exchange rate (RER) from its equilibrium

How successful is PPP, and its extension in the monetary model, as a measure of the equilibrium exchange rate? What are the determinants and dynamics of equilib

Real Exchange Rates, Devaluation, and Adjustment provides a unified theoretical and empirical investigation of exchange rate policy and performance in scores of