Reforming pensions looms large over the policy agenda of OECD countries. This is hardlysurprising since public spending on pensions accounted on average for 7 per cent of OECDGDP in 2005; and this pension spending effort is set to increase significantly over the comingdecades in response to...

A second-generation model of currency crises is combined with a standard model ofbanks as providers of insurance against liquidity risk. In a pegged exchange rateregime, after funds have been committed to the banks, news arrives about the qualityof the banks’ assets and about the exchange rate...