This chapter begins with a number of important preliminary issues including the distinction
between rules and discretion in monetary policy; the feasibility of committed rule-like …

Throughout history, rich and poor countries alike have been lending, borrowing, crashing,
and recovering their way through an extraordinary range of financial crises. Each time, the …

This chapter surveys the recent literature on the theory of macroeconomic policy. We study
the effect of various incentive constraints on the policy making process, such as lack of …

We extend the standard finance model of the firm's dividend/investment/financing decisions
by allowing the firm's managers to know more than outside investors about the true state of …

In a discretionary regime the monetary authority can print more money and create more
inflation than people expect. But, although these inflation surprises can have some benefits …

In the context of the recent financial crisis, the extent to which the US economy has become
dependent on financial activities has been made abundantly clear. In Capitalizing on Crisis …

The paper reviews the recent literature on monetary policy rules. We exposit the monetary
policy design problem within a simple baseline theoretical framework. We then consider the …

Society can sometimes make itself better off by appointing a central banker who does not
share the social objective function, but instead places “too large” a weight on inflation-rate …

Starting from the observation that the European Union now possesses many of the attributes
of modern political systems, Hix and Høyland take an innovative approach to analysing …

We develop a dynamic asset pricing model of cryptocurrencies/tokens that allow users to
conduct peer-to-peer transactions on digital platforms. The equilibrium price of tokens is …