We study a class of infinite-horizon nonlinear dynamic economic models in which preferences, technology and laws of motion for exogenous variables can change over time either deterministically or stochastically, according to a Markov process with time-varying transition probabilities, or both....

<title/> This article considers the requirement for a regulatory regime for the UK voluntary sector that is sensitive to the unique features of the sector, while also maximizing public trust and safeguarding the interests of wider stakeholders. Regulatory Impact Assessments are important mechanisms in...

Using alternative measures of term lending rates and counterparty risk and a wide variety of econometric specifications, we find that counterparty risk has a robust significant effect on interest rate spreads in the term inter-bank loan markets. In contrast, we do not find comparably robust...

This paper considers three simple rules-based strategies to improve and maintain financial stability. The first reforms the rules of bankruptcy to handle large financial institutions with a minimum of disruption. The second would focus macro-prudential policy on setting permanent and appropriate...

This paper presents evidence that the recession of 2007-2009 and the weak recovery have both been caused by poor economic policies, including a shift toward more discretionary, more interventionist and less predictable actions. While these policies may have led to temporary growth spurts,...

This paper shows that deviations from more rules-based policies that worked well in the Great Moderation or NICE (Non-Inflationary Consistently Expansionary) period have been a factor in the deterioration of economic performance in recent years. The policy deviations explain why the volatility...

A simple exit rule from the extraordinary measures taken by the Federal Reserve in the past two years is proposed. The rule describes the joint path of the interest rate and the level of reserves. The rule has several attractive properties including a predictable return to traditional monetary...