A theory of the international trade pattern in risky assets is developed by applying the law of comparative advantage to asset trade. According to this l aw, there is a tendency for a country to import assets that have rela tively high autarky prices. It is examined how autarky prices are aff...

Inflation-targeting regimes (like those of New Zealand, Canada, the United Kingdom, and Sweden) are interpreted as having explicit inflation targets and implicit employment targets. Without employment persistence, an 'inflation-target-conservative' central bank eliminates the inflation bias,...

The authors present a new solution to the time-consistency problem that appears capable of enforcing ex ante policy i n settings where other enforcement mechanisms do not work. The soluti on involves a social contract that specifies the optimal ex ante poli cy and is effectively sold by...