"This paper studies the effects of monetary policy rules in a monetary union. The focus of the analysis is on the interaction between the fiscal policy of member countries (regions) and the central monetary authority. When capital markets are integrated, the fiscal policy of one country will...

"In a world of imperfect information, reputations often guide the sequential decisions to trust and to reward trust. We consider two-player situations, where the trusted player, called the temptee, has a temptation to betray. The strength of the temptation to betray varies from encounter to...