In standard public finance theory a government's cost of borrowing depends on the common beliefs held by rational investors regarding default risk. We advance understanding of the effects of diverse beliefs and overconfidence among investors in their ability to assess the sovereign's...

This note investigates the impact of greater income inequality on the tax base, on the defactofiscal space, and the sovereign spreads. Using data from 50 countries in 2005 and in 2010,we find that higher income inequality is associated with a lower tax base, lower de-facto fiscalspace, and...

This paper studies the cross-country variation of the fiscal stimulus and the exchange rate adjustmentpropagated by the global crisis of 2008-9, identifying the role of economic structure in accounting for theheterogeneity of response. We find that greater de facto fiscal space prior to the...

Developing Asia experienced a sharp surge in foreign currency reserves prior to the 2008-9 crisis.The global crisis has been associated with an unprecedented rise of swap agreements betweencentral banks of larger economies and their counterparts in smaller economies. We explorewhether such swap...

This paper investigates the association between greater income inequality, de-facto fiscalspace, and sovereign spreads. Using data from 50 countries in 2007, in 2009 and in 2011, wefind that higher income inequality is associated with a lower tax base, lower de-facto fiscalspace, and higher...

Controls on capital inflows have been experiencing a renaissance since 2008, with several prominent emerging markets implementing them in recent years. We focus on Brazil, which instituted five changes in its capital account regime in 2008–2011. Using the synthetic control method, we construct...

We study capital flows in a panel of 130 countries, and derive the implications for the observed patterns of capital flows and capital controls before and into the crisis of 2008–11. We find that the size of capital flows is positively correlated with country's income level. In addition,...

We study a relationship between economic openness via financial and trade integration and government revenue from financial repression. An implicit budgetary saving, the financial repression revenue, as measured by the stock of government domestic debt multiplied by the difference between...

This paper investigates the association between greater income inequality, de-facto fiscal space, and sovereign spreads. Using data from 50 countries in 2007, in 2009 and in 2011, we find that higher income inequality is associated with a lower tax base, lower de-facto fiscal space, and higher...

Recently, the ASEAN+3 countries have taken a number of measures to bolster monetary integration. These include the establishment of the ASEAN+3 Economic Review and Policy Dialogue and the Chiang Mai Initiative Multilateralization (CMIM). More recently, the ASEAN+3 Macroeconomic Research Office...