In the Mundell-Fleming framework, standard monetary policy and exchange rate flexibility fully
insulate economies from shocks. However, that framework abstracts from many real world …

This paper finds optimal fiscal rule parameter values and measures the effects of imposing
fiscal rules using a default model calibrated to an economy that in the absence of a fiscal rule …

We analyze how concerns for model misspecification on the part of international lenders
affect the desirability of issuing state-contingent debt instruments in a standard sovereign …

This paper presents a comparative analysis of the macroeconomic adjustment in Chile,
Colombia, and Peru to commodity terms-of-trade shocks. The study is done in two steps:(i) an …

This paper surveys the literature on sovereign debt from the perspective of understanding
how sovereign debt differs from privately issue debt, and why sovereign debt is deemed safe …

We consider how fear of model misspecification on the part of the planner and/or the
households affects welfare gains from optimal macroprudential taxes in an economy with …

This paper explores the feasibility of an idea proposed first by the German Council of
Economic Experts in 2011 and revisited by Italian and French authorities in 2021: the one-off …

In the Mundell-Fleming framework, standard monetary policy and exchange rate flexibility fully
insulate economies from shocks. However, that framework abstracts from many real world …

This paper finds optimal fiscal rule parameter values and measures the effects of imposing
fiscal rules using a default model calibrated to an economy that in the absence of a fiscal rule …

Colombian house prices have increased significantly between 2005 and 2016. This paper
estimates the extent of misalignments in house prices relative to fundamentals and evaluates …