<P>Contents : Wage Inequality and Regional Unemployment Persistence: U.S. vs. Europe,Guiseppe BErtola and Andreas Ichino. Capital Utilization and Returns to Scale, Craig Burnside,Martin Eichenbaum, and Sergio Rebelo. Banks and Derivatives, Gary Gorton and Richard Rosen.Exchange-Rate-Based Stabilizations: Theory and Evidence, Sergio Rebelo and Carlos Vegh. InflationIndicators and Inflation Policy, Stephen Cecchetti. Recent Central Bank Reforms and the Role ofPrice Stability as the Sole Objective of Monetary Policy, Carl Walsh. Is Central Bank Independence(and Low Inflation) the Result of Effective Financial Opposition to Inflation?, Adam Posen. TheUnending Quest for Monetary Salvation, Stanley Fischer.</P>