A demand based theory of sub-national debt bailouts is presented. It is shown that revenue sharing (RS) arrangements alter the demand for bailouts among politicians with regional constituencies as a bailout usually implies a shift of taxation to the federal tier. Automatic RS may lead to the...

We compute steady-state growth and inflation for 12 emerging economies based on agnostic and parsimonious country-specific time varying parameter (TVP) VAR models. Steady-state metrics offer a natural benchmark against which economic outcomes may be assessed, as they represent the trend growth...

We study the effects of globalisation on the slope of the New Keynesian Phillips curve for CPI inflation, based on a broad panel of 35 countries and controlling for possibly non-linear exchange rate effects. We find that the output gap generally has a significant positive effect on inflation,...