The opposition to a liberal stance on imports of manufactures from developing countries is growing as certain specific groups of products made in these countries prove increasingly competitive and the industrialized countries suffer from persistent high unemployment. Model computations for the...

In times of financial distress, central banks provide unlimited liquidity to avoid fire sales. In response, banks raise their demand for collateral assets, and the short-term scarcity of collateral securities leads to higher prices, the Fire Buy premium. To avoid collateral scarcity, central...