We develop and estimate a parsimonious New-Keynesian small open-economy model that incorporates Diagnostic Expectations (DE)—a behavioral alternative to Rational Expectations (RE). Under DE, agents ...

Our eLibrary offers over 25,000 IMF publications in multiple formats. The informal sector accounts for a large fraction of the economy and labor force in many emerging market and developing economies.

SYDNEY, Oct 31 (Reuters) - U.S. tariffs have acted as a negative demand shock for a small open economy like New Zealand's, Prasanna Gai, a member on the Reserve Bank of New Zealand's rate setting ...

Surging import costs. Mounting payroll and healthcare expenses. A shortage of affordable loans. And a stressed-out workforce. Small businesses are facing mounting pressure from America’s affordability ...