I analyze a power struggle where competing factions have "private" financial assets and deplete a "common" stock of natural resources with no private property rights. I obtain a feedback Nash equilibrium to the dynamic common-pool problem and obtain political variants of the Hotelling...

The authors document an empirical puzzle for European Monetary System exchange rates during a period in which the bands on these exchanges rates were (almost) credible, i.e., exchange rate distributions are hump-shaped rather than U-shaped as predicted by the standard target zone model. The...

Even though all debt and wage contracts are indexed, there is an incentive to levy a surprise inflation tax as this erodes the real value of debt service, permits a cut in the tax rate, and boosts private consumption. With rules it is optimal to smooth tax and seigniorage revenues. However, with...