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    • Hedging against the government: a solution to the home asset bias puzzle 

      Berriel, Tiago Couto; Bhattarai, Saroj
      2013-01
      We explain why international nominal bonds and equity portfolios are biased domestically. In our model, holding domestic government nominal debt provides a hedge against shocks to bond returns and the impact on taxes they ...
    • Inflation targeting with imperfect information 

      Araújo, Aloísio Pessoa de; Berriel, Tiago Couto; Santos, Rafael Chaves
      2016-02
      In a global games setup with imperfect commitment technology, we show that low targetsthe ones close to the optimal inflation under perfect commitmentare unattainable, leading to a trade-off between low and credible targets. ...