Stabilization policy is feasible and desirable in a class of standard new classical rational expectations macromodels even when full information output is policy independent. Neither different information across private agents nor the existence of an economy-wide financial market are necessary...

This paper proves that the variability of output over the business cycle can be exacerbated due to the expected inflation effect even in new classical models with fully flexible prices. The authors also consider a variant of Fischer's rational expectations model with overlapping wage contracts....

Within a one-sector, infinite-horizon representative agent model with technological externalities and a convex-concave production function, this paper derives a capital subsidy policy that simultaneously eliminates the wedge between private and social marginal products of capital, and achieves a...

There may be a nexus between card games and financial markets. Akerlof and Shiller (2010) ask whether the decline in the number of bridge players and the growth in the number of poker players may have led to the current bad financial traders’ practices which are responsible for the global...

The need for a proper burial is widely felt. This paper makes use of an original data set to explore the relationship between the prices of cemetery plots and the prices of housing. It considers a simple model where the services from both real estate and funeral homes enter individuals’...

This paper analyzes global dynamics in an overlapping generations general equilibrium model with housing-wealth effects. It shows that monetary policy cannot burst rational bubbles in the housing market. Under monetary policy rules of the Taylor-type, there exist global self-fulfilling paths of...

The life satisfaction literature has boomed in the last decades since economists have access to more accurate databases allowing to test the impact of alternative variables on subjective well-being. A still unexplored issue is the relationship between financial crises and life satisfaction, due...

Currency and financial turmoils in international capital markets have been the focus of an extensive theoretical research which started around 30 years ago. This paper provides a synthetic overview of this theoretical modeling. We analyze the basic analytical framework corresponding to the...

<Para ID="Par1">This paper proposes a measure of exchange market pressure for countries operating in hard peg regimes, such as currency unions, currency boards or full dollarization. We use a general model of currency crisis to derive a sustainability index based upon the relationship between the shadow...</para>