Is the seniority structure of sovereign debt neutral for a government’s decision between defaulting and raising surpluses? In this paper, we address this question using a model of debt crises where a discretionary government ...
What determines the optimal monetary trade-off between internal objectives (inflation, and output
gap) and external objectives (competitiveness and trade imbalances) when inefficient capital
flows cause exchange rate ...
The euro area has been experiencing a prolonged period of weak economic activity and very low inflation. This paper reviews models of business cycle stabilization with an eye to formulating lessons for policy in the euro ...
We study the conditions under which unconventional (balance-sheet) monetary policy can rule out self-fulfilling sovereign default in a model with optimizing but discretionary scale and monetary policymakers. When purchasing ...
