This paper establishes the existence of multiple equilibria in infinite-horizon open- economy models in which the value … of tradable and nontradable endowments serves as collateral. In this environment, the economy displays self …

three-sector open economy model and estimate key structural parameters country by country. We find that at the country level …

, a pegging economy might be better off with a closed than with an open capital account. Second, the welfare gain from …

This paper contributes to a literature that studies optimal capital control policy in open economy models with …