This paper presents a theory of optimal multilateral trade agreements with public political shocks. Optimal multilateral agreements exhibit "forbearance'' – where one country withholds retaliation when its trading partner receives a shock. This provides a rationale for countries not acting on...

We propose a stylised dynamic model to understand the role of social networks in the phenomenon we call "globalization." This term refers to the process by which even agents who are geographically far apart come to interact, thus being able to overcome what would otherwise be a fast saturation...

This paper examines the implications that alternative regulatory structures may have for resolving failed banking institutions. We place our emphasis on the European Union (EU), which is both economically and financially large and has several features relating to cross-border banking in the form...