This paper compares the performance of inflation and welfare loss between exchange-rate-targeting and monetary-aggregate-targeting regimes for a small-open economy characterized by a rational expectations model of the Phillips curve. We also consider rules-versus-discretion in policy. We obtain...

This paper studies the determination of the optimal loan contracts and resource allocation in a competitive credit market with asymmetric information. It focuses on an economy with risky investment projects that require two goods as inputs, only one of which is accepted by lenders as collateral....

This paper compares the performance of inflation and welfare loss between exchange-rate-targeting and monetary-aggregate-targeting regimes for a small-open economy characterized by a rational expectations model of the Phillips curve. We also consider rules-versus-discretion in policy. We obtain...