Articles in the June 2014 issue of the IMF Research Bulletin look at “The Rise and Fall of Current Account Deficits in the Euro Area Periphery and the Baltics” (Joong Shik Kang and Jay C. Shambaugh) and “The Two Sides of the Same Coin?: Rebalancing and Inclusive Growth in China” (Il Houng Lee, Murtaza Syed, and Xin Wang). The Q&A looks at “Seven Questions on the Monetary Transmission Mechanism in Low-Income Countries” (Andrew Berg, Luisa Charry, Rafael A. Portillo, and Jan Vleck). This issue of the Research Bulletin includes updated listings of IMF Working Papers, Staff Discussion Notes, and Recommended Readings from the IMF Bookstore. Readers can also find information on free access to a featured article from “IMF Economic Review.”

Abstract

Articles in the June 2014 issue of the IMF Research Bulletin look at “The Rise and Fall of Current Account Deficits in the Euro Area Periphery and the Baltics” (Joong Shik Kang and Jay C. Shambaugh) and “The Two Sides of the Same Coin?: Rebalancing and Inclusive Growth in China” (Il Houng Lee, Murtaza Syed, and Xin Wang). The Q&A looks at “Seven Questions on the Monetary Transmission Mechanism in Low-Income Countries” (Andrew Berg, Luisa Charry, Rafael A. Portillo, and Jan Vleck). This issue of the Research Bulletin includes updated listings of IMF Working Papers, Staff Discussion Notes, and Recommended Readings from the IMF Bookstore. Readers can also find information on free access to a featured article from “IMF Economic Review.”

Working Paper 14/23

Aggregate Stability and Balanced-Budget Rules

Matteo Ghilardi; Raffaele Rossi

Working Paper 14/24

Do Forecasters Believe in Okun’s Law? An Assessment of Unemployment and Output Forecasts

Laurence M. Ball; João Tovar Jalles; Prakash Loungani

Working Paper 14/25

What Is Shadow Banking?

Stijn Claessens; Lev Ratnovski

Working Paper 14/26

Regional Labor Market Adjustments in the United States and Europe

Mai Dao; Davide Furceri; Prakash Loungani

Working Paper 14/27

Foreign Investor Flows and Sovereign Bond Yields in Advanced Economies

Serkan Arslanalp; Tigran Poghosyan

Working Paper 14/28

The U.S. Manufacturing Recovery: Uptick or Renaissance?

Oya Celasun; Gabriel Di Bella; Tim Mahedy; Chris Papageorgiou

Working Paper 14/29

Emerging Market Local Currency Bond Yields and Foreign Holdings in the Post-Lehman Period—A Fortune or Misfortune?

Christian Ebeke; Yinqiu Lu

Working Paper 14/30

Monetary and Macroprudential Policies to Manage Capital Flows

Juan Pablo Medina Guzman; Jorge Roldos

Working Paper 14/31

Information Rigidities: Comparing Average and Individual Forecasts for a Large International Panel

Jonas Dovern; Ulrich Fritsche; Prakash Loungani; Natalia T. Tamirisa

Working Paper 14/32

Judicial System Reform in Italy—A Key to Growth

Gianluca Esposito; Sergi Lanau; Sebastiaan Pompe

Working Paper 14/33

Commodity Price Shocks and Imperfectly Credible Macroeconomic Policies in Commodity-Exporting Small Open Economies

Juan Pablo Medina Guzman; Claudio Soto

Working Paper 14/34

Debt and Growth: Is There a Magic Threshold?

Andrea Pescatori; Damiano Sandri; John Simon

Working Paper 14/35

Rising BRICs and Changes in Sub-Saharan Africa’s Business Cycle Patterns

Oumar Diallo; Sampawende J.-A. Tapsoba

Working Paper 14/36

Assessing Countries’ Financial Inclusion Standing—A New Composite Index

Goran Amidžic; Alexander Massara; André Mialou

Working Paper 14/37

Asia’s Stock Markets: Are There Crouching Tigers and Hidden Dragons?

Fabian Lipinsky; Li Lian Ong

Working Paper 14/38

Why Was Asia Resilient? Lessons from the Past and or the Future

Phakawa Jeasakul; Cheng Hoon Lim; Erik J. Lundbäck

Working Paper 14/39

Tracking Global Demand for Emerging Market Sovereign Debt

Serkan Arslanalp; Takahiro Tsuda

Working Paper 14/40

Estimating Sri Lanka’s Potential Output

Ding Ding; John Nelmes; Roshan Perera; Volodymyr Tulin

Working Paper 14/41

Managing Income Tax Compliance Through Self-Assessment

Andrew Okello

Working Paper 14/42

Quality, Trade, and Exchange Rate Pass-Through

Natalie Chen; Luciana Juvenal

Working Paper 14/43

From Volatility to Stability in Expenditure: Stabilization Funds in Resource-Rich Countries

Naotaka Sugawara

Working Paper 14/44

Efficient Energy Investment and Fiscal Adjustment in Senegal

Salifou Issoufou; Edward F. Buffie; Mouhamadou Bamba Diop; Kalidou Thiaw

Working Paper 14/45

Deep Roots of Fiscal Behavior

Serhan Cevik; Katerina Teksoz

Working Paper 14/46

The Regulatory Responses to the Global Financial Crisis: Some Uncomfortable Questions

Stijn Claessens; Laura E. Kodres

Working Paper 14/47

Disentangling India’s Investment Slowdown

Rahul Anand; Volodymyr Tulin

Working Paper 14/48

Assessing Bias and Accuracy in the World Bank-IMF’s Debt Sustainability Framework for Low-Income Countries

Andrew Berg; Enrico Berkes; Catherine A. Pattillo; Andrea Presbitero; Yorbol Yakhshilikov

Working Paper 14/49

Fiscal Limits, External Debt, and Fiscal Policy in Developing Countries

Huixin Bi; Wenyi Shen; Shu-Chun S. Yang

Working Paper 14/50

Debt Sustainability, Public Investment, and Natural Resources in Developing Countries: The DIGNAR Model

Giovanni Melina; Shu-Chun S. Yang; Luis-Felipe Zanna

Working Paper 14/51

Surging Investment and Declining Aid: Evaluating Debt Sustainability in Rwanda

Will Clark; Birgir Arnason

Working Paper 14/52

Trade Integration and Business Cycle Synchronization: A Reappraisal with Focus on Asia

Romain A Duval; Kevin C. Cheng; Kum Hwa Oh; Richa Saraf; Dulani Seneviratne

Working Paper 14/53

Safe-Haven Korea?—Spillover Effects from UMPs

Jack Ree; Seoeun Choi

Working Paper 14/54

How can Korea Boost Potential Output to Ensure Continued Income Convergence?

Sonali Jain-Chandra; Longmei Zhang

Working Paper 14/55

Inflation Persistence in Brazil—A Cross-Country Comparison

Shaun K. Roache

Working Paper 14/56

Financial Crises in DSGE Models: Selected Applications of MAPMOD

Jaromir Benes; Michael Kumhof; Douglas Laxton

Working Paper 14/57

Financial Crises in DSGE Models: A Prototype Model

Jaromir Benes; Michael Kumhof; Douglas Laxton

Working Paper 14/58

Strengthening Post-Crisis Fiscal Credibility: Fiscal Councils on the Rise—A New Dataset

Xavier Debrun; Tidiane Kinda

Working Paper 14/59

Fiscal Policy in Latin America over the Cycle

Alexander Klemm

Working Paper 14/60

Global Financial Shocks and Foreign Asset Repatriation: Do Local Investors Play a Stabilizing Role?

Gustavo Adler; Marie-Louise Djigbenou; Sebastian Sosa

Working Paper 14/61

Exchange Rate Flexibility and Credit during Capital Inflow Reversals: Purgatory…Not Paradise

Nicolas E. Magud; Esteban Vesperoni

Working Paper 14/62

Cross-Country Experience in Reducing Net Foreign Liabilities: Lessons for New Zealand

Ding Ding; Werner Schule; Yan Sun

Working Paper 14/63

India: Defining and Explaining Inclusive Growth and Poverty Reduction

Rahul Anand; Volodymyr Tulin; Naresh Kumar

Working Paper 14/64

Income Inequality, Fiscal Decentralization, and Transfer Dependency

Caroline-Antonia Goerl; Mike Seiferling

Working Paper 14/65

Comparing the Performance of Logit and Probit Early Warning Systems for Currency Crises in Emerging Market Economies

Fabio Comelli

Working Paper 14/66

Official Demand for U.S. Debt: Implications for U.S. Real Interest Rates

Iryna Kaminska; Gabriele Zinna

Working Paper 14/67

Does Demand Volatility Lower Growth and Raise Inflation? Evidence from the Caribbean

Magda E. Kandil

Working Paper 14/68

India’s Recent Macroeconomic Performance: An Assessment and Way Forward

Muneesh Kapur; Rakesh Mohan

Working Paper 14/69

Global Liquidity and Drivers of Cross-Border Bank Flows

Eugenio Cerutti; Stijn Claessens; Lev Ratnovski

Working Paper 14/70

Monetary Policy Coordination and the Role of Central Banks

Rakesh Mohan; Muneesh Kapur

Working Paper 14/71

Bank Funding Costs for International Banks

Rita Babihuga; Marco Spaltro

Working Paper 14/72

Commercial Property Price Indexes: Problems of Sparse Data, Spatial Spillovers, and Weighting

Mick Silver; Brian Graf

Working Paper 14/73

Public Investment, Public Finance, and Growth: The Impact of Distortionary Taxation, Recurrent Costs, and Incomplete Appropriability

Christopher Adam; David Bevan

Working Paper 14/74

The Role of Country Concentration in the International Portfolio Investment Positions for the European Union Members

Iuliia Brushko; Yuko Hashimoto

Working Paper 14/75

China’s Monetary Policy and Interest Rate Liberalization: Lessons from International Experiences

Wei Liao; Sampawende J.-A. Tapsoba

Working Paper 14/76

Transmission of Financial Stress in Europe: The Pivotal Role of Italy and Spain, But Not Greece

Brenda González-Hermosillo; Christian A. Johnson

IMF Working Papers and other IMF publications can be downloaded in full-text format from the Research at the IMF website: http://www.imf.org/research.