<i>Argument:</i> The paper argues that the introduction of the Euro has considerably reduced de facto monetary policy autonomy in non-ECU members. We start from a simple Mundellian model, in which currency unions raise economic efficiency but reduce monetary policy autonomy. Our main argument holds...

One of the perennial questions in the scientific study of war is how war affects the economy. The authors examine the influence that the political developments within three war regions had on global financial markets (CAC, Dow Jones, FTSE) from 1990 to 2000. They embed a rational expectation...

The introduction of the Euro has considerably affected the de facto monetary policy autonomy – defined as statistical independence from monetary policy in the key currency areas – in countries outside the European Currency Union. Using a standard open economy framework we argue that de facto...

We argue that the European currency union (ECU) reduced the de facto monetary policy autonomy of EU countries abstaining from introducing the euro. The large share of imports from euro zone countries renders a close alignment of monetary policy to the interest rate set by the European Central...

We augment the increasingly common practice of typically ad hoc robustness tests into a research methodology that allows reliable inferences when researchers do not know the true data-generating process. We identify three principal sources of model uncertainty. First, theories simplify and aim...

Existing accounts of counterterrorist policies posit that defensively oriented measures create negative externalities and result in regulatory competition inducing governments to increasingly tighten their policies. We argue that rather than causing an unconditional global ‘race to the top,'...