We describe a model for two market-makers in the sovereign bond market. The paper gives special importance to the way payments are decided and reflects the cost of securities issuance and trading, a usually small and neglected component of the bond price in normal times. The model generates a...

This paper discusses the structural implications of real and financial globalisation, with the aim of drawing lessons for the conduct of monetary policy and, in particular, for the assessment of risks to price stability. The first conclusion of the paper is that globalisation may have played...