In this paper we analyze the behavior of the risk premia in exchange markets with very different exchange rate regimes: free floating (dollar markets), the low credibility EMS regime (e.g., Lira/DM and FF/DM) and the high credibility EMS regime (guilder/DM). We find that in the first and the...

The reasoning effectively governing the UK's abstention from the EMS has changed over time. Reservations were based initially on fears for UK competitiveness and subsequently on a desire to exercise monetary autonomy in a counter-inflationary `medium-term financial strategy'. Difficulties with...

In this paper we present empirical evidence indicating that the EMS countries have experienced a worsening of their inflation/unemployment trade-off since 1979 which on average was more pronounced than in the rest of the OECD area (including the other European countries). We interpret this...

Lobby groups press for various administrative concessions which are granted at the expense of the rest of society. This paper tries to explain why sometimes the rest of society does not prevent the lobbies from exploiting them while at other times it protests against the injustice. It also...

This paper examines three interwar exchange rate regimes: the free float of the early 1920s, the fixed rates of 1927-31 and the managed float of the early 1930s. Nominal rates were considerably more variable under free than under managed floating. The reduction in nominal exchange rate...

This paper analyzes the effects of European Community trade policy towards the car market, in a formal model in which the motor industry is treated as an imperfectly competitive industry with economies of scale in production. Voluntary restrictions on exports of Japanese cars to Community...

This paper summarizes and extends the conclusions of a series of papers on the interwar experience of sovereign borrowing, default and debt readjustment. In explaining the incidence and extent of default, we highlight the importance of a range of factors, both economic and political. We find...

In the paper I examine the trade-offs between internal and external balance and the role of macroeconomic policy in Greece. I estimate and test versions of the two principal open economy macromodels: the imperfect-substitutes, one-sector model, and the two-sector model with nontraded goods. Both...

This paper derives and then estimates a model of employment where unions and firms bargain over wages and possibly employment, and efficiency wage considerations may be important. It illustrates the difficulties involved in interpreting many existing attempts to discriminate between alternative...

The Fundamental Equilibrium Exchange Rate (FEER) is the real exchange rate which produces a current account that is exactly matched by equilibrium medium-term capital flows. This paper sets out a small model to calculate FEERs for the G7 from 1971 to 1988. This model's parameters are either...