The paper analyzes a very stylized model of crises and demonstrates how the degree of strategic complementarity in the …

institutions precede crises and, interestingly, positive reforms occur thereafter. Strong institutions shorten the duration of … crises, ethnic cleavages do the reverse. However, the negative effects of ethnic cleavages are not insurmountable: an …

periods of turmoil, financial markets have tended to impose strong programs of austerity on member countries of the Eurozone …-induced austerity, as it occurs mainly during periods of recession, has the effect of reducing the power of the automatic stabilizers in … since the start of the sovereign debt crisis are insufficient to safeguard the Eurozone from future crises. …

We shed light on the function, properties and optimal size of austerity using the standard sovereign debt model … augmented to include incomplete information about credit risk. Austerity is defined as the shortfall of consumption from the … level desired by a country and supported by its repayment capacity. We find that austerity serves as a tool for securing a …

This contribution examines the role of capitalism in anti-American terrorism. Using data for 149 countries between 1970 …, consistent with economic norms theory, higher levels of market-capitalism are associated with less anti-American terrorism …