We study cooperative optimal Ramsey equilibria in the open economy addressing classic policy questions: Should restrictions be placed to free trade and capital mobility? Should capital income be taxed? Should goods be taxed based on origin or destination? What are desirable border adjustments? How can a Ramsey allocation be implemented with residence-based taxes on assets? We characterize optimal wedges and analyze alternative policy implementations.
- Atkeson, d’Avernas, Eisfeldt, Weill: Government Guarantees and the Valuation of American Banks
- Kehoe, Midrigan, Pastorino: Evolution of Modern Business Cycles: Accounting for the Great Recession
- Aguiar and Amador: Self-Fulfilling Debt Dilution: Maturity and Multiplicity in Debt Models
- Amador and Phelan: Reputation and Sovereign Default
- Ohanian, Restrepo-Echavarria, Wright: Bad Investments and Missed Opportunities? Postwar Capital Flows to Asia and Latin America
Subscribe to receive email alerts when economists from the Federal Reserve Bank of Minneapolis publish new Staff Reports, Working Papers or Economic Policy Papers. Occasionally other important news will be shared.