the general equilibrium effects of capital flows (portfolio investments and loans, FDI) on the governance of domestic … banks. We find that liberalization of capital flows may deteriorate the governance of the domestic financial system by …

governance of state-owned enterprises should be enhanced. Monetary policy will aim at containing inflation by targeting reserve …

In this paper we use a general equilibrium model with heterogeneous agents to assess the macroeconomic and welfare …-crisis level, postponing debt stabilization for two decades would entail a permanent output loss of about 17 percent and a welfare … loss of almost 7 percent of lifetime consumption. Moreover, the long-run welfare gains from the adjustment would more than …

limited. We develop a simple welfare-based measure that captures how far countries are from the ideal of perfect risk sharing …

and other aggregates, and derive a second order approximation to welfare. Numerical calibrations show broad CPI targeting … to be welfare-superior to alternative policy rules once the variance of food price shocks is sufficiently large as in …