Bolivia has achieved noteworthy success over the past 15 years in raising incomes, reducing poverty, and maintaining macroeconomic stability by deploying commodity revenues to finance transfers, public investment, and state-led development, using an exchange rate peg as a policy anchor. However,...

This paper investigates the effects of members' exits from a currency union on the credibility of the common currency. In our currency union model, the inflation rate of the common currency is determined by majority voting among N member countries that are heterogeneous with respect to their...

This paper studies a multi-period mean-variance (MV) portfolio selection problem in a market of one risk-free asset and one risky asset traded with proportional transaction costs and no-shorting constraint. A particular interest of this study is to investigate the time consistency in efficiency...