Papers & Opinions

Central banking | Political institutions | Theory

The Euro as a Diverse Monetary Union

By Oscar Soons | Posted on 21 May 2021

We analyze the political economy causes and consequences of a monetary unification among countries with different institutional quality. Before a common currency countries with stronger institutions have more efficient public...
READ MORE

Banking | Electoral politics | Theory

The Political Economy of Prudential Regulation

By Magdalena Rola-Janicka | Posted on 21 May 2021

This paper introduces a voting model into a setting with negative borrowing externalities to study voter preferences for prudential regulation. Voters internalize the general equilibrium impact of prudential policy on...
READ MORE