With heterogeneous productivity and sticky prices in the short run, exchange rate changes can generate real effects on agents in the economy; the result is that the currency regime becomes a policy variable amenable to political competition. This paper discusses how special interests and...

This paper examines the relationship between redistribution, recognition, and liberty. In particular, it critiques the existing approaches in the critical literature that either reduces redistribution to a simple subset of recognition, or insists that recognition is both necessary and sufficient...

This paper considers the question of whether international banks learn from their previous crisis experiences and reduce their lending to developing countries in the event of a financial crisis. The analysis combines a bank-level dataset of bank activity and ownership with country-level data on...

One of the persistent policy problems faced by governments contemplating financial liberalizations is the question of whether to allow foreign banks entry into the domestic economy. This question has become ever more urgent in recent times, due to rapid financial globalization, coupled with the...

Financial decentralization is constrained by the extent to which the market and institutional frameworks that agents operate introduce transactions costs to economic exchange. Such transactions costs are endogenous to the system, and in some cases can lead to financial instabilities that...

This paper considers the question of whether international banks learn from their previous crisis experiences and reduce their lending to developing countries in the event of a financial crisis. The analysis combines a bank-level dataset of bank activity and ownership with country-level data on...