This paper proposes a model of signal distortion in a two-player game with imperfect public monitoring. We construct a tractable theoretical framework where each player has the opportunity to distort the true public signal and each player is uncertain about the distortion technologies available...

We develop a theory of foreign exchange interventions in the presence of limited capital mobility. We study a real small open economy subject to global liquidity and endowment shocks. Home and foreign bond markets are segmented and intermediaries have a limited capacity to arbitrage between both...