Since monetary policy is constrained in fixed exchange rate regimes, we should observe fewer banking crises due to moral hazard in countries with credible currency pegs. However, three countries with seemingly credible pegs in the nineteen-eighties and -nineties, namely China, Hong Kong and...

World financial markets have been in turmoil as investors grapple with the possibility that Greece and perhaps Italy, Ireland, Portugal and Spain will default on their debts. The 2011 downgrade of the S&P outlook for US debt to “negative” suggests that there may eventually be concerns that...

The paper argues that the factors that determine treatment priority in socialized medicine, namely gravity of complaint and patient “importance†are similar to those that determine whether or not a frail banking system will be bailed out in a fixed exchange rate regime.

Beaucoup de gens avancent l'hypothèse que l'instabilité politique est responsable de plusieurs maux économiques: inflation élevée, chômage élevé et croissance lente. La présente étude met en valeur une autre conséquence négative de l'instabilité politique, notamment que...