Applying a standard model of endogenous quality choice to the case of multiple national markets (i.e., a developed and a less developed country), we consider the effect of an economic integration (i.e., a movement from segmented markets into a single integrated market through the removal of...

The monetary policy targets the very short end of the yield curve although real economic activity is largely dependent upon the medium to long- term market interest rates. Conventional wisdom is that decrease in the monetary policy target rate leads to an immediate decrease in market interest...

Translated from English by D. Erschler.