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Inflation and growth performance according to the ‘coarse’ RR classification Regime Pegged Intermediate Floating Freely floating Freely falling Dual market in which parallel market data is missing. Source: Reinhart and Rogoff (2002); authors’ own estimations. 4. Level of inflation: ‘official’ (GGW) classification with various samples Constant 3-year SD Investment to GDP ratio Openess Avg yrs of schooling 3-year SD ToT Tax to GDP ratio Initial income/US income Population size Population growth Gov.

2006 Springer. Printed in the Netherlands. 42 M. BLASZKIEWICZ-SCHWARTZMAN AND P. WOZNIAK effected by a reduction in money wages, which takes time and causes unemployment. Thus, it is argued that when dealing with shocks to the BoP, exchange rate depreciation and appreciation respectively can reduce the impact on unemployment and inflation, especially in the world of sticky nominal wages. Giving up this important stabilization instrument would only be justified in a homogenous environment with high factor mobility, where shocks are symmetrical and well correlated.

Presented at the conference ‘Currency and Maturity Matchmaking: Redeeming Debt from Original Sin’, IADB, Washington DC, November. A. (1961). A theory of optimum currency areas. American Economic Review, 51 (3), 657-665. A. (1963). Capital mobility and stabilization policy under fixed and flexible exchange rates. The Canadian Journal of Economics and Political Science, XXIX (4), 475-485, November. Romer, D. (1993). Openness and inflation: theory and evidence. Quarterly Journal of Economics, CVIII, 869-903.

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A Problem in Orientalizing Cretan Birds: Mycenaean or Philistine Prototypes? by J. L Benson


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