The main rationale for policy intervention in debt renegotiation is to enhance such activity when foreclosures are perceived to be inefficiently high. We examine the ability of the government to influence debt renegotiation by empirically evaluating the effects of the 2009 Home Affordable...

We study the association between resource rents and political stability, highlighting the importance of the distribution of political power as a mediating factor. We present a simple theoretical model showing that increased rents are likely to be positively associated with the stability of a...

We study the impact of heterogeneous saving behavior on the distributional effects of public investment. A capital tax is levied to finance productive public capital in an economy with two types of households: high income households who save dynastically and middle income households who save for...

We present a model where the saving rate of the household sector, especially households at the bottom of the income distribution, becomes the endogenous variable that adjusts in order for full employment to be maintained over time. An increase in income inequality and the current account deficit...

Long-term interest rates in advanced economies have been low since the global financial crisis. However, in the United States the Federal Reserve could begin to hike its policy rate, the federal funds target rate, before the end of the year. In the United Kingdom, the Bank of England could...

International flow of capital in the form of Foreign Direct Investment (FDI) is considered to be the primary form of capital transfer in the global economy. It plays an important role among other forms of international capital flows, due to the intensity of its streams and its strength of impact...

The size of the public debt is now one of the main areas of interest of the entire society. As the size of the debt increases with time, one should consider possible ways of reducing it. Decision makers focus both on ways to reduce the increase in public debt and on ways to reduce its size....

This paper argues that the loose monetary policy of two of the world's most important financial institutions-the US Federal Reserve Board and the European Central Bank-were ultimately responsible for the outburst of global financial crisis of 2008 - 09. Unusually low interest rates in 2001 - 05...

The aim of this chapter is to assess changes in the competitiveness of the Polish economy from 2010 to 2015. The analysis covers the basic indicators of economic development, such as GDP growth, inflation, unemployment, balance of public finances, and current account balance. Poland’s economic...

This paper tests the ability of popular New Keynesian models, which are traditionally used to study monetary policy and business cycles, to match the data regarding a key channel for monetary transmission: the dynamic interactions between macroeconomic variables and their corresponding...