Cover; Half Title; Title Page; Copyright Page; Dedication; Table of Contents; Preface; Introduction; 1. Optimum Currency Areas: Currency Area Composition and Exchange-Rate Regimes-Theory and Evidence Reconciled; 2. Measuring the Sacrifice Ratio: Some International Evidence (with Kai Leitemo); 3. Regional...

This paper presents a model in which economic crises have positive effects on welfare. Periods of very high inflation create the incentive for the resolution of social conflict and thus facilitate the introduction of economic reforms and the achievement of higher levels of welfare. Policies to...