This paper examines the behavior of indebtedness, consumption, and asset prices in a small open economy in which the foreign real interest rate depends not only on an exogenous world interest rate and on indebtedness, but also on the value of the capital stock, viewed as an implicit...

The restructuring of Greece's debt offers a clean case study of the dynamics of sovereign restructuring. This essay discusses the powerlessness of sovereign creditors, Greece's predicament, and its resolution through (a) a two-step refinancing with bond accumulation and value injection and (b)...

Islamic finance is the fastest growing segment of the global financial system and has been experiencing an impressive double-digit growth in recent history. Following the growth trend of Islamic finance, a rapidly rising affluent and well-educated Muslim middle class from the Islamic world and...

Historical events are reflected in asset prices. In this paper, we analyse government bond prices of Germany and Austria traded on the Swiss bourse during WWII. Some war events that are generally considered crucial are clearly reflected in government bond prices. This holds, in particular, for...