Abstract: This paper argues that while globalization is hardly a new phenomenon, our conception of it has changed significantly over the years. While “globalization” once described an individual firm’s decision to expand abroad, it now has more to do with the willingness of all firms to do the same. This means that modern firms must […]
Abstract: This paper reviews the rationale for the coordination of fiscal and monetary policies and operations, and the pillars on which such coordination rests. It assesses the coordination of monetary and fiscal policies in Egypt during the 1990s in terms of objectives, instruments, and operational procedures, and looks for the best mode of coordination in […]
Abstract: This paper evaluates macroeconomic management in Brazil from 1992 to the present, with a particular focus on exchange rate policy. It points out that while Brazil’s Real Plan succeeded in halting the hyperinflation that had reached more than 2000 percent in 1993, it also caused a significant real appreciation of the exchange rate – […]
Abstract: The monetary/exchange rate policy nexus is in transition in many developing countries.Some of these countries, while recognizing the need for more realistic monetary policy management and related structural reforms, have maintained a fixed exchange rate system; some have adopted explicit inflation targeting frameworks as the nominal anchor for their macro – economic regimes; others […]
Abstract: This paper explains how the Egyptian monetary policy during the first half of the 1990s reduced macroeconomic imbalances and achieved economic stabilization. It also evaluates the recent pressures on the external position and the policy responses. On the basis of these findings, the paper identifies the challenges ahead, and takes a cursory look at […]
This edition of the Business Barometer reports the results of a stratified sample of 200 public and private firms. The survey covers their assessment of economic growth and the results of their operations in terms of their production, sales, inventories, prices, wages, employment and investment over the last six months of 2000. It also summarizes […]
Abstract: This paper surveys possible monetary policy options for emerging market countries. As the paper does not seek to enter into the fix versus flex debate, it only considers monetary policy options for countries with a flexible exchange rate. After making the point that the conduct of monetary policy requires a nominal anchor and surveying […]
Abstract: This paper addresses the new-orthodox view that the choice of exchange rate regime has been hollowed out to a choice between the two corner solutions of firmly fixed and more or less freely floating exchange rates. While conceding that both these regimes have an advantage over intermediate regimes in terms of being less vulnerable […]
Abstract: This paper reviews globalization and financial crisis over the past 120 years. By examining the evidence on the incidence and depth of financial crises (currency crises, banking crises and twin crises) across four regimes from 1880 to the present, the study demonstrates that crises in emerging markets are more frequent today than during the […]
Abstract: This paper reviews the existing evidence on the origins of banking crises, provides new results on the impact of government bank ownership on financial stability, and discusses policy options that can prevent and mitigate the consequences of banking crises. We find that government ownership of banks increases the likelihood and fiscal cost of crises, […]