This paper considers the design and desirability of rules for the international coordination of macroeconomic policies in a world characterized by model uncertainty. It is argued that the presence of model uncertainty, far from rendering cooperation unattractive, may actually provide a...

The paper considers gains from international economic policy coordination when there is uncertainty concerning the functioning of the world economy, but also learning about the quot;truequot; model on the part of policymakers. The paper reports estimates of plausible alternative versions of a...

This paper examines the various roles of IMF financing in crisis prevention. Emerging market economies that experienced financial crises in the past have been subject to enormous economic and social costs, highlighting the importance of crisis prevention. While the main defense against a crisis...

Milton Friedman argued that flexible exchange rates would facilitate external adjustment. Recent studies find surprisingly little robust evidence that they do. We argue that this is because they use composite (or aggregate) exchange rate regime classifications, which often mask very...