The future international climate policy architecture will most likely consist of partial climate policy initiatives like the EU's Emission Trading System. Trade integration threatens to undermine these systems' environmental effectiveness by shifting emissions to other countries. We estimate a...

Financial stability is an important policy objective since crises are associated with big economic, social, and political costs. Promoting stability requires preventing “sudden stops” in capital flows, which are events in which foreign financing abruptly disappears. This paper contributes to...