The Economics Professor at the University of Pennsylvania Jesús Fernández-Villaverde presented his paper Financial Frictions and the Wealth Distributions at the 7th NCID Research Workshop at the Fundación Ramón Areces in Madrid.
“In a world with financial frictions, wealth distribution matters. Why? Because those who operate the capital and those who own the capital are different persons and the financial friction prevents the adequate transfer from those who have to those who can operate it more efficiently”, Fernández-Villaverde said.
This paper...
Javier Bianchi, Senior Economist at the Minneapolis Federal Reserve, presented his paper Rollover Crises and Monetary Independence at the 7th NCID Research Workshop last Friday 18th of May at the Fundación Ramón Areces in Madrid.
Financial crisis have an important role in the possibility of generating a rollover crisis, as governments are tempted to default because lenders are not willing to rollover short term debt.
“When a country gives up its monetary independence, because it joins the euro or fixes the exchange rate, it is going to become much more...
Mirko Abbritti, Economics Professor at the University of Navarra and Resident Fellow at the Navarra Center for International Development presented his paper Business Relationships, Bargaining and Trade Dynamics at the 7th NCID Research Workshop, which took place at the Fundación Ramón Areces in Madrid.
Most of the trade relationships are governed by long term contracts which are firm to firm. There is evidence that usually the price in these transactions are set by bargaining. “If you ask to a firm which are the main reason why they don’t to change prices is b...