In this paper we introduce flexible majority decision rules where the size of the majority depends on the proposal made by the agenda setter. Flexible majority rules can mitigate the disadvantages of democracies in the provision of public projekts. In many cases, the combination of the priciples...

We investigate a banking system subject to repeated macroeconomic shocks and show that without deposit rate control, the banking system collapses with certainty. Any initial level of reserves will delay the collapse but not avoid it. Even without a banking collapse, the economy still converges...