In spite of their importance in real economics, multiple equilibria in closed exchange and production-and-exchange economies are usually ignored in macroeconomic models. We argue that default and bankruptcy laws create conditions for a unique equilibrium. We report experimental evidence on the effectiveness of assigning default penalties on fiat money to resolve this multiplicity and select a s...

What determines which assets are used in transactions? We develop a framework where the extent to which assets are recognizable determines the extent to which they are acceptable in exchange—i.e. it determines their liquidity. Recognizability and liquidity are endogenized by allowing agents to invest in information. We analyse the effects of monetary policy. There can be multiple equilibria, wi...

The strength of the neoclassical paradigm, generations of students have been told, lies in its hardheaded grounding in a general model of self-interested action. But recent developments in microeconomic theory have shown that the selfinterested behavior underlying neoclassical theory is artificially truncated: it depicts a charmingly Victorian but utopian world in which conflicts abound but a h...

E conomists hail it as “a powerful tool,” “a work of genius,” and “one of the most ingenious geometrical constructions ever devised in economics.” It graces the pages of countless textbooks on price theory, welfare economics, and international trade. It is associated with some of the greatest advances ever made in economic theory. It elegantly depicts the two fundamental welfare theorems that a...

This paper aims to investigate the links between exchange rate pass-through (ERPT) and monetary policy. We examine the degree of ERPT to consumer prices for 11 emerging markets (6 inflation targeters and 5 non-inflation targeters) using both multivariate cointegrated VAR (CVAR) and impulse responses derived from the vector error correction model (VECM). Results of cointegration analyses suggest...

neuroeconomics that has merged from the interaction of neuroscience, economics and psychology, is. promising new approach to understanding human behavior in economic analysis, especially as an selector (that is the fundamental issue is economics). this article illustrate the advantages of neuroeconomics and with focus on methodology of economics and ability of this branch of economic for theori...

Title of Document: ESSAYS ON INTERNATIONAL FINANCE Fernando Gabriel Im, Doctor of Philosophy, 2012 Directed By: Professor Carmen Reinhart, Department of Economics Professor Carlos Végh, Department of Economics In the first paper, I use industry-level data to investigate the impact of exchange rate arrangements on the productive structure of the economy. The identification strategy has similarit...

Evolutionary economics has developed into an academic field of its own, institutionalized around, amongst others, the Journal of Evolutionary Economics (JEE). This paper analyzes the way and extent to which evolutionary economics has become an interdisciplinary journal, as its aim was: a journal that is indispensable in the exchange of expert knowledge on topics and using approaches that relate...