A Simple Model of an International Lender of Last Resort
This paper develops a simple model of an international lender of last resort (ILOLR). The World economy consists of many open economies, each with its...
A Model of the Lender of Last Resort
A paper by Charles Goodhart of LSE FMG and Haizhou Huang of the International Monetary Fund.
Capital Budgeting and Stock Option Plans
Stock option plans are derived as the optimal managerial compensation scheme based on the interactions between motivating the CEO to extract...
Optimal Monetary Policy Rules in a Rational Expectations Model of the Phillips Curve
In this paper we construct a rational expectations model based on a Phillips curve that embodies persistence in inflation. As we assume that the...
Investment Trap
To what extend can optimal contracts and renegotiation designs alleviate equity market failure due to asymmetric information and transactions costs...
Fiscal Policy and the Sub-Optimality of the Walsh Contract for Central Bankers
We develop a model of monetary and fiscal policy where the time inconsistency of optimal monetary policy is due to the effects of tax distortions. If...
What is the Central Bank's Game?
In this paper we, first, by explicitly taking account of the private sector's influence and pressure on the monetary authorities, provide a more...
Central Bank Reputation and Conservativeness
In a monetary game played by the private sector and a central banks (CB), who has private information, reputation may not completely solve the CB time...
