Empirical analyses of central bank foreign-exchange market intervention are typically cast in terms of a dichotomy between "leaning against the wind" and "exchange-rate targeting." Apparently, the profession has arrived at an almost unanimous verdict in favor of the former. Th is paper...

This note merges the fact that real activity is persistent with a Barro-Gordon type model of endogenous monetary policy. It shows that persistence crucially affects policy choices. This applies in noncooperative games with a finite horizon and in games with an infinite horizon. Always,...

This paper looks at whether public attitudes towards a single European currency held in the European Union member states reflect a rational evaluation of the involved benefits and costs. It finds that they do: the looser monetary and fiscal policy was in the past, and the more time a country...