Economic interdependence offers the potential for raising global welfare, but there is a fuzzy boundary between national interests and global objectives in the economic policy area. This paper examines the boundary area. It concludes that all international economic regimes must entail a mix of...

We propose a model to account for two stylized facts about sovereign yields in the Euro Area: their convergence after 2000 and subsequent divergence after 2008, and the contagion among yields of the Euro periphery after the financial crisis of 2007-2008.Two borrowing countries share a bailout...