Private Capital Flows, Financial Development, and Economic Growth in Developing Countries Staff Working Paper 2000-15 Jeannine Bailliu An important issue in the debate over the desirability of freer capital mobility for developing countries is whether capital flows have significant effects on economic growth. Proponents of capital account liberalization cite the growth-promoting attributes of capital inflows as a key benefit of financial integration for developing countries. Content Type(s): Staff research, Staff working papers Research Topic(s): International topics JEL Code(s): F, F2, F21, F4, F43, O, O5, O50
Real Effects of Collapsing Exchange Rate Regimes: An Application to Mexico Staff Working Paper 1999-10 Patrick Osakwe, Lawrence L. Schembri This paper examines the impact of a collapsing exchange rate regime on output in an open economy in which shocks to capital flows and exports predominate. A sticky-price rational expectations model is used to compare the variability of output under the collapsing regime to that under alternative fixed and flexible regimes. Output is found to […] Content Type(s): Staff research, Staff working papers Research Topic(s): Exchange rates JEL Code(s): F, F3, F31, F4, F41
Fiscal Policy and External Balance in the G-7 Countries Technical Report No. 60 Stephen S. Poloz This paper assesses evidence, from the G-7 countries, of a link between a country's fiscal policy and its external balance, often referred to as the "twin deficits" phenomenon. It begins by reviewing the stylized facts, and then examines the theoretical case for such a link. Content Type(s): Staff research, Technical reports Research Topic(s): Balance of payments and components, Fiscal policy, International topics JEL Code(s): F, F3, F32, F4, F41, H, H6, H60
A VAR Analysis of Economic Interdependence: Canada, the United States, and the Rest of the World Technical Report No. 46 John Kuszczak, John Murray The authors use vector autoregression (VAR) modelling techniques to examine the response of the domestic economy to foreign influences and to quantify some of the concepts and relationships relating to economic interdependence. Particular attention is given to the dynamic behaviour and interactions of the U.S. and Canadian economies over the past twenty years. Extensive empirical […] Content Type(s): Staff research, Technical reports Research Topic(s): International topics JEL Code(s): F, F1, F15, F4, F41