Neoclassical economic theory views current account imbalances as the result of (individual) decisions to save more than to invest domestically, in line with the loan-able funds doctrine. Monetary analysis in the Keynesian tradition rejects such approaches and emphasizes that a country's net...

Policymakers have relied on a wide range of policy tools to cope with capital flow shocks. And yet, the effects and interaction of these policies remain under debate, as does the motivation for using them. In this paper, quantile local projections are used to estimate the entire distribution of...

This paper introduces a theoretical framework for liquidity management under fixed exchange rate arrangement, derived from the price-specie flow mechanism of David Hume. The framework highlights that the risk of short-term money market rates un-anchoring from the uncovered interest rate parity...

F. A. Hayek took two trips to Chile, the first in 1977, the second in 1981. The visits were controversial. On the first trip he met with Genera l Augusto Pinochet, who had led a coup that overthrew Salvador Allende in 1973. During his 1981 visit, Ha yek gave interviews that were published in the...