This research consists of three separate, but related projects focusing on international financial institutions. The first project will analyze the nature of the World Bank's third-world debt and compare it to the debt held by commercial banks. Among the important question to be analyzed are: (1) to what extent are bank loans really aid? (2) Does the financial structure of the World Bank affect the allocation of its loans across countries? Is the restructuring of third world debt appropriate? The second area of research looks at the coordination of fiscal policy across countries with different electorial structures and different timing of elections. This research will consider both pressures caused by staggered elections and possible mechanisms to mitigate these problems as they arise. The final topic is an analysis of how to design a central bank for a monetary union as in the case of the European Monetary System. This research is important because it will provide a better understanding of emerging financial arrangements and institutions in the third world and in Europe and how the U.S. might be affected changing international financial institutions.
