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Research Topics

Macroeconomics


Swimming Against the Tide: Strategies for Improving Equity in Health
Birdsall, Nancy; Hecht, Robert
Working Papers - English - May, 1995

The evidence shows that government spending for health in many developing countries benefits the well-to-do more than the poor. However, a combination of favorable political forces and sound public policies can shift the focus of government expenditures toward the poor. Doing this is an essential part of any effective poverty reduction program in developing countries.


Inflows of Capital to Developing Countries in the 1990s: Causes and Effects
Reinhart, Carmen; Calvo, Guillermo A.; Leiderman, Leonardo
Working Papers - English - Nov, 1994

This paper discusses the changing pattern of capital flows to developing countries. The analysis is heavily colored by recent events. It concentrates on the principal facts, developments, and policies that characterize the current episode of capital inflows to Asia and Latin America.


Fiscal Discipline and the Choice of Exchange Rate Regime
Tornell, Aaron; Velasco, Andrés
Working Papers - English - Sep, 1994

Conventional wisdom claims that fixed exchange rates provide more fiscal discipline than do flexible rates, but the recent experiences in Europe, the record of Sub-Saharan countries in the 1980s, and the history of stabilization attempts in Latin America cast empirical doubts on this wisdom. To explore this puzzle we present a standard intertemporal model with perfect capital mobility and price flexibility, in which fiscal policy is endogenously determined by a maximizing fiscal authority.


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