We provide evidence on life-cycle and business-cycle fluctuations in the dispersion of household-level wage innovations, comparing the US, the UK, and Germany. First, we find that household characteristics explain about 25% of the dispersion in wages within an age group in all three countries....

We examine monetary policy options for a small open economy where sovereign default might occur due to intertemporal insolvency. Under interest rate policy and floating exchange rates the equilibrium is indetermined. Under a fixed exchange rate the equilibrium is uniquely determined and...

Active interest rate policy is frequently recommended based on its merits in reducing macroeconomic volatility and being a simple device. Yet, it might be outperformed by an even simpler policy. A peg can be welfare-enhancing and can uniquely be implemented.