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Crisis and the COVID-19 pandemic. We take advantage of the multivariate nature of our parametric model to measure stagflation …. We find an increasing risk of stagflation for the euro area in 2022 while in the United States stagflation risk increased … earlier in 2021 and started decreasing more recently. Notwithstanding the significantly high levels of inflation, stagflation …
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Societies provide institutions that are costly to use, but able to enforce long-run relationships. We study the optimal decision problem of using self-governance for risk sharing or governance through enforcement provided by these institutions. Third-party enforcement is modelled as a costly...
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Over the past decades, cross-border financial flows have increased in importance and have in many occasions exceeded the underlying current account positions. This phenomenon has been accompanied by an increase in the volume of international equity transactions that accentuate the role of...
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When people share risk in financial markets, intermediaries provide costly enforcement for most trades and, hence, are an integral part of financial marketsu0092 organization. We assess the degree of risk sharing that can be achieved through financial markets when enforcement is based on the...
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