This paper studies the design of optimal monetary policy rules for emerging economies confronted to sharp capital outflows and speculative attacks. We extend Taylor type monetary policy rules by allowing the central bank to give some weight to the level of precautionary foreign reserve balances...

This article studies a dynamic model of an industry life cycle based on increasing returns in the cost of growth whereby large firms can grow more easily. When there are strong increasing returns in the adjustment cost function, the model exhibits multiple rest points, and firms do not...