Eswar Prasad

Multimod Mark III: The Core Dynamic and Steady State Model

Hamid Faruqee, Peter Isard, Douglas Laxton, Eswar Prasad, Bart Turtelboom

This study describes the Mark III version of MULTIMOD, the IMF's multi region macroeconomic model. Mark III version of MULTIMOD differs from its predecessor in several important respects. New...

The Chinese Approach to Capital Inflows: Patterns and Possible Explanations

Eswar Prasad, Shang-Jin Wei

In this paper, we adopt a cross-country perspective to examine the evolution of capital flows into China, both in terms of volumes and composition. China's inflows have generally been dominated by...

How Do Trade and Financial Integration Affect the Relationship Between Growth and Volatility?

M. Ayhan Kose, Eswar Prasad, Marco Terrones

The influential work of Ramey and Ramey (1995) highlighted an empirical relationship that has now come to be regarded as conventional wisdom-that output volatility and growth are negatively...

The Chinese Approach to Capital Inflows: Patterns and Possible Explanations

Eswar Prasad, Shang-Jin Wei

In this paper, we adopt a cross-country perspective to examine the evolution of capital flows into China, both in terms of volumes and composition. China's inflows have generally been dominated by...

Financial Globalization: A Reappraisal

Kose, Ayhan, Prasad, Eswar, Rogoff, Kenneth, Wei, Shang-Jin

The literature on the benefits and costs of financial globalization for developing countries has exploded in recent years, but along many disparate channels with a variety of apparently conflicting...

Financial Globalization: A Reappraisal

M. Ayhan Kose, Eswar Prasad, Kenneth S. Rogoff, Shang-Jin Wei

The literature on the benefits and costs of financial globalization for developing countries has exploded in recent years, but along many disparate channels with a variety of apparently conflicting...

A Framework for Independent Monetary Policy in China

Marvin Goodfriend, Eswar Prasad

As China's economy becomes more market based and continues its rapid integration into the global economy, having an independent and effective monetary policy regime oriented to domestic objectives...

Wage Inequality in the United Kingdom, 1975-99

Eswar Prasad

This paper provides evidence that cross-sectional wage inequality in the U.K. rose sharply in the 1980s, continued to rise moderately through the mid-1990s and has remained essentially unchanged...

A Framework for Independent Monetary Policy in China

Marvin Goodfriend, Eswar Prasad

As the Chinese economy becomes more market based and continues its rapid integration into the global economy, having an independent and effective monetary policy regime oriented to domestic...

China's Growth and Integration into the World Economy: Prospects and Challenges

Eswar Prasad

China’s transformation into a dynamic private-sector-led economy and its integration into the world economy have been among the most dramatic global economic developments of recent decades....

Why Are Saving Rates of Urban Households in China Rising?

Marcos Chamon, Eswar Prasad

From 1995 to 2005, the average urban household saving rate in China rose by 8 percentage points, to about one quarter of disposable income. We use household-level data to explain why households are...

Global Business Cycles: Convergence or Decoupling?

Kose, M. Ayhan, Otrok, Christopher, Prasad, Eswar

This paper analyzes the evolution of the degree of global cyclical interdependence over the period 1960-2005. We categorize the 106 countries in our sample into three groups – industrial countries,...

Skill Heterogeneity and the Business Cycle.

Eswar Prasad

This paper extends the real business cycle framework to incorporate ex ante skill heterogeneity among workers. Consistent with the empirical evidence, skilled and unskilled workers in the model face...

How do trade and financial integration affect the relationship between growth and volatility?

Ayhan Kose, Marco E. Terrones, Eswar Prasad

The influential work of Ramey and Ramey (1995) highlighted an empirical relationship that has now come to be regarded as conventional wisdom - that output volatility and growth are negatively...

Labour Market Adjustment in Canada and the United States

Eswar Prasad, Alun Thomas

This paper provides a quantitative assessment of the relative importance of different labour market adjustment mechanisms in Canada and the United States. The effects of the unemployment insurance...

Currency Unions, Economic Fluctuations and Adjustment: Some Empirical Evidence

Bayoumi, Tamim, Prasad, Eswar

This paper compares sources of disturbances to output and labour market adjustment in the US currency union compared to a set of EU countries. Comparable datasets comprising 1-digit sectoral data for...

Financial Globalization, Growth and Volatility in Developing Countries

Kose, Ayhan, Prasad, Eswar, Rogoff, Kenneth, Wei, Shang-Jin

This Paper provides a comprehensive assessment of empirical evidence about the impact of financial globalization on growth and volatility in developing countries. The results suggest that it is...

Financial Globalization: A Reappraisal

Kenneth Rogoff, M. Ayhan Kose, Eswar Prasad, Shang-Jin Wei

The literature on the benefits and costs of financial globalization for developing countries has exploded in recent years, but along many disparate channels and with a variety of apparently...

Are Prices Countercyclical?

Bankim Chadha, Eswar Prasad

Prices , Production , Inflation , Economic models ,

The Canadian Labor Market - Developments, Prospects, and Policy

Eswar Prasad

Labor markets , Canada , Unemployment , Labor market policy , Labor costs ,

Labor Market Aspects of Industrial Restructuring in Canada

Eswar Prasad

Labor market policy , Canada , Industrial policy , Production ,

Are Prices Countercyclical? Evidence from the G-7

Bankim Chadha, Eswar Prasad

Prices , Inflation , Production , Unemployment , Group of Seven ,

Labor Market Adjustment in Canada and the United States

Eswar Prasad, Alun H. Thomas

Labor market policy , Canada , United States , Unemployment ,

Skill Heterogeneity and Aggregation Bias over the Business Cycle

Eswar Prasad

Labor , Skilled labor , Wages , Economic models ,

International Evidence on the Determinants of Trade Dynamics

Eswar Prasad, Jeffery A. Gable

Balance of trade , Business cycles , Exchange rates , Developed countries , Economic models ,

International Trade and the Business Cycle

Eswar Prasad

International trade , Business cycles , Balance of trade ,

Inequality, Transfers and Growth - New Evidence from the Economic Transition in Poland

Eswar Prasad, Michael P. Keane

Economic growth , Poland , Transition economies , Income , Economic reform ,

What Determines the Reservation Wages of Unemployed Workers? New Evidence from German Micro Data

Eswar Prasad

This paper provides new empirical evidence on the relationship between reservation wages of unemployed workers and macroeconomic factors--including the unemployment rate and generosity of the...

How Does Globalization Affect the Synchronization of Business Cycles?

M. Ayhan Kose, Eswar Prasad, Marco Terrones

This paper examines the impact of rising trade and financial integration on international business cycle comovement among a large group of industrial and developing countries. The results provide at...

Financial Integration and Macroeconomic Volatility

M. Ayhan Kose, Eswar Prasad, Marco Terrones

This paper examines the impact of international financial integration on macroeconomic volatility in a large group of industrial and developing economies over the period 1960-99. We report two major...

Volatility and Comovement in a Globalized World Economy: An Empirical Exploration

M. Ayhan Kose, Eswar Prasad, Marco Terrones

This paper analyzes the evolution of volatility and cross-country comovement in output, consumption, and investment fluctuations using two distinct datasets. The results suggest that there has been a...

How Does Financial Globalization Affect Risk Sharing? Patterns and Channels

M. Ayhan Kose, Eswar Prasad, Marco Terrones

In theory, one of the main benefits of financial globalization is that it should allow for more efficient international risk sharing. This paper provides a comprehensive empirical evaluation of the...

Putting the Cart Before the Horse? Capital Account Liberalization and Exchange Rate Flexibility in China

Eswar Prasad, Thomas Rumbaugh, Qing Wang

Capital controls , China , Exchange rate regimes , Financial sector , Capital account liberalization ,

Controlled Capital Account Liberalization: A Proposal

Raghuram Rajan, Eswar Prasad

In this paper, we develop a proposal for a controlled approach to capital account liberalization for economies experiencing large capital inflows. The proposal essentially involves securitizing a...

Hong Kong SAR: Meeting the Challenges of Integration with the Mainland

Ida Liu, Dora M. Iakova, William Lee, Hong Liang, Eswar Prasad, ...

China , Economic conditions , Economic policy , Economic stabilization , Exchange rate policy , Hong Kong SAR ,

A Pragmatic Approach to Capital Account Liberalization

Prasad, Eswar, Rajan, Raghuram G.

Cross-country regressions suggest little connection from foreign capital inflows to more rapid economic growth for developing countries and emerging markets. This suggests that the lack of domestic...

Does Openness to International Financial Flows Contribute to Productivity Growth?

Kose, M. Ayhan, Prasad, Eswar, Terrones, Marco E.

Economic theory has identified a number of channels through which openness to international financial flows could raise productivity growth. However, while there is a vast empirical literature...