This book studies the international coordination of monetary and fiscal policies in the world economy. It carefully discusses the process of policy competition and the structure of policy cooperation. As to policy competition, the focus is on monetary and fiscal competition between Europe and...

Legislative and regulatory actions taken in response to the financial turmoil which occurred between 2007 and 2009 expanded the extent to which financial institution liabilities were protected by federal government guarantees: i.e., these actions expanded the federal financial safety net. How...

In this paper we analyze the effect of central bank gold holdings on government bonds and exchange rates. We test the hypothesis that gold reserves build trust and thus reduce government bond yields and exchange rate volatility. The econometric analysis of a panel data set comprising a...

All tax theorists recognize that capital gains taxes ought to apply only to real gains; that is, those that are adjusted for inflation. This has never been the case in American history. As a consequence, a considerable portion of inflationary gains have been taxed as if they are real, according...

Given the weak economic performance of many countries since the recent crisis, there is an increasing need for structural reforms aimed at promoting long-run economic growth. Structural reforms can entail short-run output costs unless offset by a demand expansion. When monetary policy is...

As the financial markets mature in a modern economy, capital gains tax concerns arise naturally among economists as well as policy makers. This paper intends to investigate the distortions of capital gains tax in an inflationary environment. We develop a dynamic general equilibrium, life-cycle...