Title:Are Small Countries Able to set their Own Interest Rates? Assessing the implications of the macroeconomic trilemma
Author(s):HERWARTZ, Helmut; ROESTEL, JanDate:2010Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:According to the ’macroeconomic trilemma’ the ability of small economies to pursue an independent monetary policy is jointly determined by country specific foreign exchange (FX) rate flexibility and capital mobility. In ...
Title:Asset Based Unemployment Insurance
Author(s):RENDAHL, PontusDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:This paper studies a model of optimal redistribution policies in which agents
face unemployment risk and in which savings may provide partial self-insurance. Moral
hazard arises as job search effort is unobservable. The ...
Title:Asset Commonality, Debt Maturity and Systemic Risk
Author(s):ALLEN, Franklin; BABUS, Ana; CARLETTI, ElenaDate:2010-11-20Type of Publication:Working PaperSeries/Report no.:Wharton Financial Institutions CenterAbstract:We develop a model where financial institutions swap projects in order to diversify their individual risk. This can lead to two dfferent asset structures. In a clustered structure groups of financial institutions hold ...
Title:Asymmetric Awareness and Moral Hazard
Author(s):AUSTER, SarahDate:2011Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:This paper introduces asymmetric awareness into the classical principal-agent model and discusses the optimal contract between a fully aware principal and an unaware agent. The principal enlarges the agent’s awareness ...
Title:Asymmetric Awareness and Moral Hazzard
Author(s):AUSTER, SarahDate:2012Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:This paper introduces asymmetric awareness into the classical principal-agent model and discusses the optimal contract between a fully aware principal and an unaware agent. The principal enlarges the agent’s awareness ...
Title:Back to Keynes?
Author(s):VAN DER PLOEG, FrederickDate:2005Type of Publication:Working PaperSeries/Report no.:CEPR discussion paperAbstract:After a brief review of classical, Keynesian, New Classical and New Keynesian theories of macroeconomic policy, we assess whether New Keynesian Economics captures the quintessential features stressed by JM Keynes. Particular ...