Essays on stabilisation

Being originally from the Dominican Republic, I am unfortunate to have experienced three economic crises and more than seven stabilisation attempts. I am also wiser, however, because of those experiences, and became fascinated by the recurring elements accompanying the crises: what economists dealing with stabilisation call stylized facts. I have also developed frustration by the way in which markets and institutions poorly coordinated in achieving stabilisation and preventing future failures. Even though we have learned systematically to deal with such devastating episodes, there is still much to discover about the way society and governments manoeuvre through crisis. How to design and implement credible and sustainable policies to lower inflation is at the heart of the literature. The essays in this dissertation will hopefully improve our understanding of, and ability to cope with, crises and the related stylized facts of stabilisation.