This paper examines the optimal time path of the tax rate, in a model where an increasing ratio of government debt to GDP is projected in the absence of policy changes.

I develop an open economy portfolio model to study how leveraged investors' wholesale funding affects the international transmission of shocks. Under binding borrowing limits, there is a link between the international investment positions of integrated economies as investors diversify the asset...

This paper addresses the issue of international payments in a stock-flow framework, by capturing the interaction between the current account balance and international assets portfolios of domestic and foreign investors. It is argued that the stability of such interaction may be affected by...

International bank portfolios constitute a large component of international country portfolios. Yet, their response to macroeconomic conditions and their impact on the international transmission of business cycles developments remains largely unexplored. We use a novel dataset on banks?...

Public policy affects the prevalence and performance of both productive and high-impact entrepreneurship. High-impact entrepreneurship prospers when knowledge is successfully generated and exploited in the economy. This process depends on complementary key ac-tors who use their competencies in...

Debt swaps as an instrument of international co-operation in environmental field were conceived and first applied in the 1980s. They were once thought of as "win-win" arrangements solving environmental and economic problems at the same time. In the 1990s it became clear, however, that (1)...

This paper describes the fiscal structure of a community as an equilibrium of a non-cooperative game where members of different pressure groups - characterised by conflicting interests - compete to get distributive gains. Their interaction is regulated by a constitution which sets the electoral...

This paper contributes to the debate on the efficacy of IMF's catalytic finance in preventing financial crises. Extending Morris and Shin (2006), we consider that the IMF's intervention policy usually exerts a signaling effect on private creditors and that several interventions in sequence may...

We present a model that illustrates the close relationship between the possibility of a currency crisis and the amount of private-sector debt within a four-stage sequential game framework. In the first stage, the government announces its exchange rate policy, and all agents in the economy...