Beaucoup de gens avancent l'hypothèse que l'instabilité politique est responsable de plusieurs maux économiques: inflation élevée, chômage élevé et croissance lente. La présente étude met en valeur une autre conséquence négative de l'instabilité politique, notamment que...

The paper considers the sizes of banking sectors that are vulnerable to runs when the central bank cares about economic stability and currency peg credibility. It is shown that when banks are small, the central bank will recapitalize unhealthy banks because doing so will not compromise its peg....

In 2008--2009, the US government spent trillions of dollars to bailout its financial system and prevent insolvency due to a deterioration in domestic loan portfolios. The following dips in US bond prices suggest that global investors feared that the US was over-extending itself and might be...