We analyze the economic consequences of forming a monetary union among countries with varying degrees of financial distortions, which interact with the firms' pricing decisions because of customer-market considerations. In response to a financial shock, firms in financially weak countries (the...

Tax-benefit policies affect household incomes through two main channels: discretionary policy changes and automatic stabilisers. Although a large body of literature has studied the impact of tax-benefit policy changes on incomes, little is known about the link between automatic stabilisers and...

Introduction -- The "party period" before the crisis -- The costs and benefits for joining a common currency with emphasis on weaker member-states -- Greece before the crisis : the critical years in domestic politics -- What the imf and EU bodies were reporting for greece during the accession...

The financial trilemma states that financial stability, financial integration and national financial policies are incompatible. Any two of the three objectives can be combined but not all three; one has to give. This paper develops a model to underpin the financial trilemma. Our findings for...