The paper provides theoretical foundations for models of strategic interdependence under uncertainty that have a continuum of agents and a decomposition of uncertainty into a macro component and an agent‐specific micro component, with a law of large numbers for the latter. This macro-micro...

The paper contains comments made on the Financial Stability Board's (FSB) Consultation Report concerning the success of regulatory reforms since the global financial crisis of 2007-2009. According to these comments, the FSB’s assessment of the role of equity is too narrow, being phrased in...

The paper provides theoretical foundations for models of strategic interdependence under uncertainty that have a continuum of agents and a decomposition of uncertainty into an macro component and an agent-speci c micro component, with a law of large numbers for the latter. The decomposition of...

The paper gives conditions for effi ciency and ineffi ciency of equilibrium allocations in an overlapping-generations model with a constant rate of population growth and with multiple assets, but without labour. Optimal portfolio choice implies that, for any period and history up to that period,...

This expository note uses Hilbert's "infinite hotel", a hotel where one can always find place for another guest even if the hotel is already full, to illustrate the failure of the First Welfare Theorem in "large-square" economies that have infinitely many participants as well as infinitely many...

The paper analyses the role of national central banks (NCBs) in the governance of the European System of Central Banks (ESCB), NCBs are the owners of the European Central Bank (ECB), and their governors dominate the ECB's Governing Council, but in monetary policy operations, NCBs are...

For overlapping-generations models with multiple assets and without labour, welfare assessments of equilibrium allocations depend on whether the certainty equivalents of the one-period-ahead marginal rates of return on assets that are held are larger or smaller than the population growth rate....