In this paper, it is shown that, contrary to standard arguments, fiscal discipline is not substantially enhanced by a fixed exchange rate regime. This study is based on data from 116 countries collected from 1975 to 2004 and uses various estimation techniques for dynamic panel data, in...

In this paper, we propose a new method to assess the impact of sovereign ratings on sovereign bond yields. We estimate the impulse response of the interest rate, following a change in the rating. Since ratings are ordinal and moreover extremely persistent, it proves difficult to estimate those...

Die Finanzkrise 2009 hat zu heftigen Diskussionen über die enge Verflechtung politischer Macht und ökonomischer Interessen geführt. Dass diese "normal" und die Krise weder einmalig ist noch die letzte ihrer Art, daran lassen die 27 Beiträge renommierter Autorinnen und Autoren keinen Zweifel....

This paper provides new empirical evidence on policy-makers' voting patterns on interest rates. Applying (pooled) Taylor-type rules and using real-time information available from published inflation reports and voting records, the paper tests for heterogeneity among committee members in three...