This paper constructs a macro-finance model with two types of borrowers: entrepreneurs who engage in productive activities and gamblers who play in lotteries. It links a central bank's interest rate policy to expected cash flows of both types of borrowers. Via this link we study how the...

Serious fiscal vulnerabilities arising from many years of high government/GDP ratios have created new and complex interactions between public debt management and monetary policy. Although their formal mandates have not changed, recent balance sheet policies of many central banks have tended to...

Financial institutions intermediate between savers and investors and contribute to corporate governance. Equity and bond markets in the former centrally planned economies are not yet in a position adequately to provide these services. It is not yet clear that investment funds will provide the...

This paper discusses the range of factors that can stimulate the further development of the domestic institutional sector through pension system reform measures. The development of the institutional sector in emerging market economies is compared with the experiences of OECD countries. The focus...

This paper discusses the range of factors that can stimulate the further development of the domestic institutional sector through pension system reform measures. The development of the institutional sector in emerging market economies is compared with the experiences of OECD countries. The focus...

This paper studies the current state and drivers of government local currency bond market (LCBM) development in Sub-Saharan Africa. We argue that well-developed government LCBMs could reduce countries' exposure to external shocks; help overcome ‘original sin'; facilitate domestic savings...