Comparative politics scholars have spent a much time exploring the causes and consequences of electoral volatility, and the result is that much has been learned about what leads both established and emerging democracies to experience electoral volatility. While different measures and factors...

We introduce external risks, in the form of shocks to the level and volatility of world interest rates, into a small open economy model subject to the risk of sudden stops—large recessions together with abrupt reversals in capital inflows| and characterize optimal macroprudential policy in...

Government is often considered the safe sector of an open economy that provides households with insurance against external risk exposure. Among highly integrated economies, however, households should be able to exploit common financial markets to insure themselves. In this paper we examine the...