This study examines currency competition between the Dollar and Bitcoin, focusing on monetary policy. Using theory and lab experiments, we show that proportional transfers (interest on Dollar balances) operate in two regimes. Depending on inflation expectations, policy may raise Dollar trade shares and reduce velocity, weakening price pass-through and generating Bitcoin inflation spillovers despite its rigid supply. Alternatively, pass-through can be strong with little effect...

I present a political-economic theory to explain bailouts for failing firms in the
presence of non-voters (foreigners). The governing politician uses the bailout as
a tool to sway voters to maximize re-election chances. Bailouts partially leak to
foreigners at the firm and are financed by tax-paying foreigners outside the firm.
I show larger failing firms are granted larger bailouts even if...

Policy makers have developed different forms of policy intervention for stopping,
or preventing runs on financial firms. This paper provides a general framework to
characterize the types of policy intervention that indeed lower the run-propensity
of investors versus those that cause adverse investor behavior, which increases the
run-propensity. I employ a general global game to analyze and compare a large set