We analyse the international transmission of interest rates by focusing on the role of the accumulation of international reserves and on the financing of sovereign debt. An increase in foreign exchange reserves is expected to moderate the influence of U.S. interest rates. However, a high level...

Despite a widespread fascination with the so called compensation hypothesis – i.e. the proposition that governments have to provide insurance against the risks of open markets to make integration into the international economy politically feasible – there appears to exist a complete lack of...

The paper ascribes to the literature analysing the conditions leading to the break-up of nations. The model englobes the existing literature and considers two separate spaces, a state and its region, where informed and non-informed citizens cohabit. We depart in considering that noninformed...