This paper analyzes the stability of monetary regimes in an economy where fiat money is endogenously created by the government, information about its value is imperfect, and learning is decentralized. We show that monetary stability depends crucially on the speed of information transmission in...

We study the role of contract enforcement in shaping the dynamics of international trade at the firm level. We develop a theoretical model to describe how agents build reputations to overcome the problems created by weak enforcement of international contracts. We find that, all else equal,...

This paper tests for the presence of a credit channel (particularly a bank-lending sub-channel) for monetary policy in the housing market.We argue that the importance of this channel for investment in residential housing is highly dependent on the structural features, and particularly the...