Market participants' risk attitudes, wealth and portfolio composition influence their positions in apegged foreign currency and, therefore, may have important effects on the sustainability of currencypegs. We analyze such effects in a global game model of currency crises with continuous...

This paper studies a dynamic model of crises with timing frictions that combines the mainaspects of Morris and Shin (1998) and Frankel and Pauzner (2000). The usual arguments forexistence and uniqueness of equilibrium cannot be applied. It is shown that the model has aunique equilibrium within...

[...]This paper analyses these debates using the case study of the Netherlands in the early 1920s. The literature argues that it is during this decade that the Netherlands experienced her one and only traditional banking crisis from 1600 to the present day, and after which her short-lived...

This report is the first policy study of the China Economic Research and AdvisoryProgramme, in which eminent economists from China and abroad have participated. Thereport focuses on the problems faced by China in the reform of its social security system.On the basis of economic principles and...

“Light” welfare states were perceived by some as one source of East Asian economicdynamism. Didier Jacobs has examined the strengths of several East Asian socialwelfare systems and the challenges they face after the financial crisis.Japan has a fully-fledged social welfare system. Yet her...

The global financial crisis that began in mid-2007 has renewedconcerns about financial instability and focused attention onthe fundamental role of central banks in preventing andmanaging systemic crises. In response to the turmoil, centralbanks have made extensive use of both new and existing...

[...]This paper addresses how central banks can resuscitatelending chains by providing information that reduces uncertainty about participants along the chains. This action has been taken before: the Bank Holiday of 1933, declared byPresident Franklin Delano Roosevelt, resolved uncertaintyabout...