Nowadays remembered mostly through Adam Smith’s references to the short-lived Ayr Bank in the Wealth of Nations, the 1772-3 financial crisis was an important historical episode in its own right, taking place during a pivotal period in the development of financial capitalism and coinciding with...

When the economic forecasts of public institutions deviate from actual outcomes, the deviations may not only be due to error but also to political intentions. A central bank, for example, may publish over-optimistic growth forecasts at the time of election to facilitate the re-election of the...

Economists and policy-makers have long sought the ideal framework for monetary policy as it is arguably one of the most important tools for government to influence the economy. Exchange rate and inflation are believed to be the most appealing anchors for providing guidance to the conduct of...