Research Papers:

International Finance


Capital Flows & Liberalization

Domestic Saving and International Capital Movements in the Long Run and the Short Run
Feldstein, M. (1982)

The Order of Liberalization of the Current and Capital Accounts of the Balance of Payments   Acrobat Required
Edwards, S. (1983)

A Multilateral Agreement on Investment: Convincing the Sceptics
Drabek, Z. (1998)

Does Globalization Cause a Higher Concentration of International Trade and Investment flows?
Low, P., M. Olarreaga & J. Suarez (1998)

Whether and When to Liberalize Capital Account and Financial Services
Williamson, J. & Z. Drabek (1999)

Private Capital Flows, Living with Volatility, and the New Architecture   Acrobat Required
Corden, W.M. (1999)

Capital Flows To Developing Countries And The Reform Of The International Financial System   Acrobat Required
Akyuz, Y. & A. Cornford (1999)

Academic Views of Capital Flows: An Expanding Universe   Acrobat Required
Dooley, M.P. & C.E. Walsh (1999)

Problems and Challenges of International Capital Flows   Acrobat Required
Volcker, P.A. (1999)

How does openness to capital flows affect growth?   Acrobat Required
Rappaport, J. (2000)

A simple model of international capital flows, exchange rate risk, and portfolio choice   Acrobat Required!
Pecchenino, R.A. & P.S. Pollard (2000)

Capital Mobility for Developing Countries May Not Be So High   Acrobat Required
Willett, T.D., S.A. Young & M.W. Keil (2000)

Capital Mobility and Economic Performance: Are Emerging Economies Different?
Edwards, S. (2001)

The geography of capital flows: what we can learn from benchmark surveys of foreign equity holdings   Acrobat Required
Warnock, F.E. & M. Mason (2001)

Long-Term Capital Movements
Lane, P.R. & G.M. Milesi-Ferretti (2001)

Capital account liberalization and disinflation in the 1990s   Acrobat Required
Gruben, W.C. & D. McLeod (2001)

International Capital Flows: A Challenge for the 21st Century
Leite, S.P. (2001)

When Does Capital Account Liberalization Help More than It Hurts?
Arteta, C., C. Wyplosz & B. Eichengreen (2001)

The Information Content of International Portfolio Flows
Froot, K.A. & T. Ramadorai (2001)

Are International Deposits Tax-Driven?
Huizinga, H. & G. Nicodeme (2001)

Aging and International Capital Flows
Boersch-Supan, A., A. Ludwig & J. Winter (2001)

The Curse of Non-Investment Grade Countries
Rigobon, R. (2001)

Exchange Rates and Capital Flows
Brooks, R.J., H. Edison, M.S. Kumar & T.M. Slok (2001)

Puzzles Over International Taxation of Cross Border Flows of Capital Income
Whalley, J. (2001)

Capital Account Liberalisation: Empirical Evidence and Policy Issues I   Acrobat Required
Kohli, R. (2001)

Capital Account Liberalisation: Empirical Evidence and Policy Issues II   Acrobat Required
Kohli, R. (2001)

Global Capital Flows and Financing Constraints
Harrison, A.E., I. Love & M.S. McMillan (2002)

Capital flows? Balance of payments management
FitzGerald, V. (2002)

Financial Opening: Evidence and Policy Options
Aizenman, J. (2002)

Holding International Reserves in an Era of High Capital Mobility
Flood, R.P. & N.P. Marion (2002)

Growing Up With Capital Flows | Published   ScienceDirect Required
Mody, A. & A.P. Murshid (2002)

Determinants and Repercussions of the Composition of Capital Inflows
Carlson, M. & L.F. Hernandez (2002)

Financial centers and the geography of capital flows   Acrobat Required!
Warnock, F.E. & C. Cleaver (2002)
Börsch-Supan, A., A. Ludwig &mpa; J. Winter (2002)

Capital Account Liberalization and Economic Performance: Survey and Synthesis | Published   SURVEY PAPER
Edison, H.J., M.W. Klein, L. Ricci & T. Slok (2002)

Portfolio Investment: CPIS Database   Recommended!
IMF (2003)

Abstract: Under the auspices of the IMF, a Coordinated Portfolio Investment Survey (CPIS), involving the participation of 67 economies, was undertaken at end 2001. This followed the first CPIS, in which 29 economies participated, which was conducted for end-1997. The CPIS will now be conducted on an annual basis.

A Decomposition of Global Linkages in Financial Markets Over Time | Published   Ingenta Select Required
Forbes, K. & M.D. Chinn (2003)

Capital Flows to developing countries: does the emperor have clothes?   Acrobat Required!
Griffith-Jones, S. & J. Leape (2003)

When Rivers Flow Upstream: International Capital Movements in the Era of Globalization
Morrissey, M. & D. Baker (2003)

Catalyzing Capital Flows: Do IMF-Supported Programs Work as Commitment Devices? | Published   Wiley Interscience Required
Mody, A. & D. Saravia (2003/06)

What Do Capital Inflows Do? Dissecting the Transmission Mechanism for Thailand, 1980-96   Adobe Acrobat Required
Jansen, W.J. (2003)

What Drives Long-term Capital Flows? A Theoretical and Empirical Investigation | Published   Acrobat Required   ScienceDirect Required
Verdier, G. (2003/08)

The Developed World's Demographic Transition - The Roles of Capital Flows, Immigration, and Policy
Fehr, H., S. Jokisch & L. Kotlikoff (2003)

The Risk Tolerance of International Investors
Froot, K.A. & P.G. J. O'Connell (2003)

Open Capital Account: Concrete Wealth or Paper Wealth   Acrobat Required
Cai, J. & B. Gangnes (2003)

Serial Default and the "Paradox" of Rich to Poor Capital Flows | Published   Ingenta Select Required
Reinhart, C.M. (2004)

Empirical Perspectives on Long-Term External Debt
Lane, P.R. (2004)

The Composition of International Capital Flows: Risk Sharing Through Foreign Direct Investment   Acrobat Required
Albuquerque, A. (2004)

How can the IMF catalyse private capital flows? A model   Acrobat Required
Penalver, A. (2004)

On the Two Way Feedback Between Financial And Trade Openness | Published   ScienceDirect Required
Aizenman, J. & I. Noy (2004/06)

Capital Income Taxation and Economic Growth in Open Economies
Palomba, G. (2004)

Short-Term Capital Flows and Growth in Developed and Emerging Markets   Acrobat Required
Petroulas, P. (2004)

Sources for Financing Domestic Capital - Is Foreign Saving a Viable Option for Developing Countries? | Published   ScienceDirect Required
Aizenman, J., B. Pinto & A. Radziwill (2004/07)

Capital Income Taxation in the Globalized World
Razin, A. & E. Sadka (2004)

International Investment Patterns
Milesi-Ferretti, G.M. & P. Lane (2004)

When it Rains, it Pours: Procyclical Capital Flows and Macroeconomic Policies
Kaminsky, G.L., C.M. Reinhart & C.A. Vegh (2004)

Insurance Value of International Reserves: An Option Pricing Approach | Published
Lee, J. (2004/09)

Credit Market Imperfections and Patterns of International Trade and Capital Flows   Acrobat Required
Matsuyama, K. (2004)

Keeping Capital Flowing: The Role of the IMF | Alternative
Bordo, M.D., A. Mody & N. Oomes (2004)

Can Higher Reserves Help Reduce Exchange Rate Volatility?
Hviding, K., M. Nowak & L.A. Ricci (2004)

External Adjustment
Obstfeld, M. (2004)

The Mussa Theorem: and other results on IMF induced moral hazard | Published   Recommended!
Jeanne, O.D. & J. Zettelmeyer (2004)

Abstract: Using a simple model of international lending, we show that as long as the IMF lends at an actuarially fair interest rate and debtor governments maximize the welfare of their taxpayers, any changes in policy effort, capital flows, or borrowing costs in response to IMF crisis lending are efficient. Thus, under these assumptions, the IMF cannot cause moral hazard, as argued by Michael Mussa (1999, 2004). It follows that examining the effects of IMF lending on capital flows or borrowing costs is not a useful strategy to test for IMF-induced moral hazard. Instead, empirical research on moral hazard should focus on the assumptions of the Mussa theorem.

World financial liberalization and its effects on capital flows   Adobe Acrobat Required
Santana, J.R. & F. Garcia (2004)

Technology Differences and Capital Flows   Adobe Acrobat Required
Claro, S. (2004)

Population Aging and International Capital Flows | Published   Wiley Interscience Required
Domeij, D. & M. Floden (2004/06)

Do Tax Havens Flourish?
Hines, J.R. Jr. (2004)

FDI in Space: Spatial Autoregressive Relationships in Foreign Direct Investment
Blonigen, B.A., R.B. Davies, G.R. Waddell & H.T. Naughton (2004)

An Assignment Theory of Foreign Direct Investment
Nocke, V. & S. Yeaple (2004)

Why are Capital Flows so much more Volatile in Emerging than in Developed Countries?   Adobe Acrobat Required
Broner, F. & R. Rigobon (2004)

The Flow of Capital to Latin America, 1973–2000   ScienceDirect Required
Ramrattan, L., A.A. Gottesman & M. Szenberg (2005)

Foreign Direct Investment and the Domestic Capital Stock
Desai, M.C., C.F. Foley & J.R. Hines Jr. (2005)

Fundamentals, information, and international capital flows: A welfare analysis   ScienceDirect Required
Krebs, T. (2005)

Capital Account Liberalization, Institutional Quality and Economic Growth: Theory and Evidence
Klein, M.W. (2005)

The Effects of IMF and World Bank Lending on Long-Run Economic Growth: An Empirical Analysis   ScienceDirect Required
Butkiewicz, J.L. & H. Yanikkaya (2005)

International Financial Adjustment | Published   Recommended!
Gourinchas, P-O. & H. Rey (2005/07)

Abstract: We explore the implications of a country's external constraint for the dynamics of net foreign assets, returns, and exchange rates. Deteriorations in external accounts imply future trade surpluses (trade channel) or excess returns on the net foreign portfolio (valuation channel). Using a new data set on U.S. gross external positions, we find that stabilizing valuation effects contribute 27 percent of the cyclical external adjustment. Our approach has asset-pricing implications: external imbalances predict net foreign portfolio returns one quarter to two years ahead and net export growth at longer horizons. The exchange rate is forecastable in and out of sample at one quarter and beyond.

The determinants of cross-border equity flows   ScienceDirect Required
Portes, P. & H. Rey (2005)

The IMF in a World of Private Capital Markets | Published   ScienceDirect Required
Eichengreen, B., K. Kletzer & A. Mody (2005/06)

The Chinese Approach to Capital Inflows: Patterns and Possible Explanations
Prasad, E. & S-J. Wei (2005)

A Review of the Empirical Literature on FDI Determinants   SURVEY PAPER
Blonigen, B.A. (2005)

The IMF in a World of Private Capital Markets
Eichengreen, B.J., K. Kletzer & A. Mody (2005)

International Reserves: Precautionary versus Mercantilist Views, Theory and Evidence
Aizenman, J. & J. Lee (2005)

Does Competition for Capital Discipline Governments? Decentralization, Globalization, and Public Policy   Ingenta Select Required
Cai, H. & D. Treisman (2005)

A Meta-Analysis of the Effect of Common Currencies on International Trade   Wiley Interscience Required
Rose, A.K. & T.D. Stanley (2005)

Curbing the Boom-Bust Cycle: Stabilizing Capital Flows to Emerging Markets   Recommended!
Williamson, J. (2005)

Abstract: For the past three decades, a boom-bust cycle in capital flows has repeatedly plunged into crisis countries that had been growing rapidly. Are there feasible policy actions to curb this cycle and thus permit both investors and emerging markets to tap the benefits of capital mobility without the costs of crises? Williamson concludes that a significant reduction in the wild swings in capital flows is feasible, even though complete stability is not. The boom-bust problem cannot be tackled just, or even mainly, from the supply side but will require actions on the part of both creditors and debtors, including forward-looking provisioning by banks, retention of capital controls in some cases, and introduction of new financial instruments. The action program developed in this study is intended to facilitate financial maturity in emerging markets similar to that which has already occurred in the industrial countries.

Neither a Borrower nor a Lender: Does China's Zero Net Foreign Asset Position Make Economic Sense? | Published   ScienceDirect Required   Acrobat Required
Dollar, D. & A. Kraay (2005)

A Global Perspective on External Positions | Alternative
Lane, P.R. & G.M. Milesi-Ferretti (2005)

The United States as a Debtor Nation   Recommended!
Cline, W.R. (2005)

Abstract: The United States has once again entered a period of large external imbalances. This time the current account deficit, at nearly 6 percent of GDP in 2004, is much larger than in the last episode, when the deficit peaked at about 3.5 percent of GDP in 1987. This deficit is no longer benign, as it arguably was in the late 1990s when it was financing high investment instead of high consumption and large government dissaving. In the absence of US fiscal adjustment and a further correction of the dollar, the current account deficit is headed to $1.2 trillion by 2010 (7½ percent of GDP) and net US foreign liabilities to about $8 trillion (50 percent of GDP). The rising imbalance will increasingly put the US economy--and hence the world economy and especially developing countries--at risk. The dollar needs to decline by as much as another 20 percent, and the fiscal deficit needs to be eliminated, to bring the current account deficit down to a sustainable 3 percent of GDP. Asian currencies, especially the Chinese renminbi, will need to rise sharply, and central banks should stop intervening to prevent this rise.

Bilateral FDI Flows: Threshold Barriers and Productivity Shocks
Razin, A., E. Sadka & H. Tong (2005)

FDI Flows to Asia: Did the Dragon Crowd Out the Tigers?
Mercereau, B. (2005)

Capital Flows in a Globalized World: The Role of Policies and Institutions
Alfaro, L., S. Kalemli-Ozcan & V. Volosovych (2005)

International Capital Flows, Returns and World Financial Integration | Published   ScienceDirect Required
Evans, M.D.D. & V. Hnatkovska (2005/14)

Controlled Capital Account Liberalization: A Proposal
Prasad, E. & R. Rajan (2005)

An Information-Based Trade Off between Foreign Direct Investment and Foreign Portfolio Investment | Published   ScienceDirect Required
Goldstein, I. & A. Razin (2005/06)

Capital mobility among advanced countries   ScienceDirect Required
Kant, C. (2005)

Is Financial Globalization Beneficial?
Mishkin, F. (2005)

Why Doesn't Capital Flow from Rich to Poor Countries? An Empirical Investigation
Alfaro, L., S. Kalemli-Ozcan & V. Volosovych (2005)

The Social Cost of Foreign Exchange Reserves
Rodrik, D. (2006)

The External Wealth of Nations Mark II: Revised and Extended Estimates of Foreign Assets and Liabilities, 1970-2004 | Published   ScienceDirect Required
Lane, P.R. & G.M. Milesi-Ferretti (2006/07)

Determinants of Capital Flows: A Cross-Country Analysis   Acrobat Required
Ralhan, M. (2006)

The Accumulation of Foreign Reserves   Acrobat Required
Pineau, G., E. Dorrucci, F. Comelli & A. Lagerblom (2006)

Private capital flows, capital controls, and default risk   ScienceDirect Required
Wight, M.L.J. (2006)

A Portfolio Theory of International Capital Flows   Acrobat Required
Devereux, M.B. & M. Saito (2006)

The Case for an International Reserve Diversification Standard   Acrobat Required
Truman, E.M. & A. Wong (2006)

Institutions, capital flows and financial integration   ScienceDirect Required
Lothian, J.R. (2006)

Foreign reserves management subject to a policy objective   Acrobat Required
Coche, J., M. Koivu, K. Nyholm & V. Poikonen (2006)

Capital Flows and Monetary Policy   Acrobat Required
Pineda, J.G. (2006)

The IMF and the Liberalization of Capital Flows   Acrobat Required
Joyce, J.P. & I. Noy (2006)

U.S. Dollar Risk Premiums and Capital Flows
Balakrishnan, R. & V. Tulin (2006)

When is FDI a Capital Flow?   Acrobat Required
Marin, D. & M. Schnitzer (2006)

Real Exchange Rate and International Reserves in the Era of Growing Financial and Trade Integration
Aizenman, J. & D. Riera-Crichton (2006)

A Solution to Two Paradoxes of International Capital Flow
Ju, J. & S-J. Wei (2006)

Institutional Efficiency, Monitoring Costs and the Investment Share of FDI   Wiley Interscience Required
Aizenman, J. & M.M. Spiegel (2006)

What matters for financial development? Capital controls, institutions, and interactions   ScienceDirect Required
Chinn, M.D. & H. Ito (2006)

Economic Policy, Institutions, and Capital Flows: Portfolio and Direct Investment Flows in Developing Countries   Wiley Interscience Required
Ahlquist, J.S. (2006)

The Home Bias and Capital Income Flows between Countries and Regions | Published   Wiley Interscience Required
Artis, M.J. & M. Hoffmann (2006/12)

International Capital Flows and U.S. Interest Rates
Warnock, F.E. & V.C. Warnock (2006)

The Optimal Level of International Reserves for Emerging Market Countries: Formulas and Applications | Published   Wiley Interscience Required
Jeanne, o. & R. Ranciere (2006/11)

Bond Markets As Conduits for Capital Flows: How Does Asia Compare?
Eichengreen, B.J. & P. Luengnaruemitchai (2006)

Capital Account Liberalization: Theory, Evidence, and Speculation | Published
Henry, P.B. (2006/07)

Unemployment dynamics with international capital mobility   ScienceDirect Required
Azariadis, C. & C.A. Pissarides (2006)

International reserves management and capital mobility in a volatile world: Policy considerations and a case study of Korea   ScienceDirect Required
Aizenman, J., Y. Lee & Y. Rhee (2007)

Central bank intervention and exchange rate dynamics: A rationale for the regime-switching process of exchange rates   ScienceDirect Required
Lee, H-Y. & W-Y. Chang (2007)

Multinational Firms, FDI Flows and Imperfect Capital Markets
Antras, P., M.A. Desai & C.F. Foley (2007)

Trade Costs and Foreign Direct Investment
Neary, J.P. (2007)

The determinants of capital inflows: Does opacity of recipient country explain the flows?   ScienceDirect Required
Hooper, V. & S-J. Kim (2007)

Longitude matters: Time zones and the location of foreign direct investment   ScienceDirect Required
Stein, E. & C. Daude (2007)

International Finance and Income Convergence: Europe is Different
Abiad, A., D. Leigh & A. Mody (2007)

The endogeneity of the exchange rate as a determinant of FDI: A model of entry and multinational firms   ScienceDirect Required
Russ, K.N. (2007)

Liquidity Risk Aversion, Debt Maturity, and Current Account Surpluses: A Theory and Evidence from East Asia
Fukuda, S-I. & Y. Kon (2007)

International capital flows | Published   Acrobat Required   ScienceDirect Required
Tille, C. & E. van Wincoop (2007/10)

Capital flows and capital goods   ScienceDirect Required
Alfaro, L. & E. Hammel (2007)

The Stability of Large External Imbalances: The Role of Returns Differentials
Curcuru, S.E., T. Dvorak & F.E. Warnock (2007)

Productivity and Taxes as Drivers of FDI
Razin, A. & E. Sadka (2007)

Explaining the global pattern of current account imbalances   ScienceDirect Required
Gruber, J.W. & S.B. Kamin (2007)

Current account balances, financial development and institutions: Assaying the world “saving glut”   ScienceDirect Required
Chinn, M.D. & H. Ito (2007)

Equipping Immigrants: Migration Flows and Capital Movements
Lange, F. & D. Gollin (2007)

International Financial Integration and Entrepreneurial Firm Activity
Alfaro, L. & A. Charlton (2007)

Welfare Implications of Capital Account Liberalization   Acrobat Required
Faia, E. (2007)

The Harberger–Laursen–Metzler effect under capital market imperfections   ScienceDirect Required
Huang, K.X.D. & Q. Meng (2007)

Large Hoarding of International Reserves and the Emerging Global Economic Architecture
Aizenman, J. (2007)

Drift control of international reserves   ScienceDirect Required
Bar-Ilan, A., N.P. Marion & D. Perry (2007)

Revisiting Price-based Controls on Capital Inflows in a “Sophisticated” Emerging Market   ScienceDirect Required
David, A.C. (2007)

Measurement and Inference in International Reserve Diversification   Acrobat Required
Wong, A. (2007)

Returns on FDI: Does the U.S. Really Do Better?
Bosworth, B., S.M. Collins & G. Chodorow-Reich (2007)

The effect of the euro on foreign direct investment   ScienceDirect Required
Petroulas, P. (2007)

International investment positions and exchange rate dynamics: a dynamic panel analysis   Acrobat Required
Binder, M. & C.J. Offermanns (2007)

International reserves and monetary policy   ScienceDirect Required
Bar-Ilan, A. & D. Lederman (2007)

Reserve accumulation: objective or by-product?   Acrobat Required
de Beaufort Wijnholds, J.O. & L. Søndergaard (2007)

Current Account Adjustment and Capital Flows   Wiley Interscience Required
Debelle, G. & G. Galati (2007)

Capital Flows to Developing Countries: The Allocation Puzzle
Gourinchas, P-O. & O. Olivier (2007)

Foreign Capital and Economic Growth
Prasad, E.S., R.G. Rajan & A. Subramanian (2007)

Do Reserve Portfolios Respond to Exchange Rate Changes Using a Portfolio Rebalancing Strategy? An Econometric Study Using COFER Data
Lim, E-G. (2007)

Terrorism and the world economy   ScienceDirect Required
Abadie, A. & J. Gardeazabal (2008)

Globalization and the Sustainability of Large Current Account Imbalances: Size Matters
Aizenman, J. & Y. Sun (2008)

International Reserves-Too Much of a Zipf's Thing
Sumlinski, M. (2008)

The Landscape of Capital Flows to Low-Income Countries
Dorsey, T.W., H. Tadesse, S. Singh & Z. Brixiova (2008)

Taxes and the global allocation of capital   ScienceDirect Required
Backus, D., E. Henriksen & K. Storesletten (2008)

Capital Inflows and Reserve Accumulation: The Recent Evidence
Reinhart, C.M. & V.R. Reinhart (2008)

Capital Account Liberalization, Real Wages, and Productivity
Henry, P.B. & D. Sasson (2008)

International capital mobility: What do national saving–investment dynamics tell us?   ScienceDirect Required
Pelgrin, F. and S. Schich (2008)

International capital mobility: Evidence from panel cointegration tests   ScienceDirect Required
Adedeji, O. & J. Thornton (2008)

A Welfare Analysis of Capital Account Liberalization   Wiley Interscience Required
von Hagen, J. & H. Zhang (2008)

The cost of reserves   ScienceDirect Required
Yeyati, E.L. (2008)

A Pragmatic Approach to Capital Account Liberalization | Published   Ingenta Select Required
Prasad, E.S. & R. Rajan (2008)

Capital Inflows and Balance of Payments Pressures - Tailoring Policy Responses in Emerging Market Economies
Ghosh, A.R., M. Goretti, B. Joshi, U. Ramakrishnan, A.H. Thomas & J. Zalduendo (2008)

International Reserves and Self-Insurance against External Shocks
Barnichon, R. (2008)

Banking Globalization, Monetary Transmission, and the Lending Channel
Cetorelli, N. & L.S. Goldberg (2008)

Global Portfolio Rebalancing Under the Microscope
Hau, H. & H. Rey (2008)

International Portfolios, Capital Accumulation and Foreign Assets Dynamics | Published   ScienceDirect Required
Coeurdacier, N., R. Kollmann & P. Martin (2008/09)

Are Emerging Asia's Reserves Really Too High?
Ruiz-Arranz, M. & M. Zavadjil (2008)

Capital account liberalization, financial depth, and economic growth   ScienceDirect Required
Klein, M.W. & G.P. Olivei (2008)

Capital Flow Bonanzas: An Encompassing View of the Past and Present
Reinhart, C.M. & V.R. Reinhart (2008)

Does Openness to International Financial Flows Raise Productivity Growth? | Published   ScienceDirect Required
Kose, M.A., E. Prasad & M. Terrones (2008)

International Capital Flows under Dispersed Information: Theory and Evidence | Published   ScienceDirect Required
Tille, C. & E. van Wincoop (2008/14)

Why doesn’t Luxembourg send all its capital to India?   ScienceDirect Required
Taub, B. & R. Zhao (2008)

Addressing causality in the effect of capital account liberalization on growth   ScienceDirect Required
Honig, A. (2008)

Capital Inflows, Resource Reallocation and the Real Exchange Rate   Wiley Interscience Required
Lartey, E.K.K. (2008)

One-Size-Fits-One: Tailor-Made Fiscal Responses to Capital Flows
Zakharova, D. (2008)

Why Aren't Developed Countries Saving?
Dobrescu, L.I., L.J. Kotlikoff & A.F. Motta (2009)

Capital Inflows and the Real Exchange Rate: Can Financial Development Cure the Dutch Disease?
Saborowski, C. (2009)

Capital Inflows: Macroeconomic Implications and Policy Responses | Published   Recommended!   ScienceDirect Required
Cardarelli, R., S. Elekdag & M.A. Kose (2009/10)

Abstract: This paper examines the macroeconomic implications of, and policy responses to surges in private capital inflows across a large group of emerging and advanced economies. In particular, we identify 109 episodes of large net private capital inflows to 52 countries over 1987-2007. Episodes of large capital inflows are often associated with real exchange rate appreciations and deteriorating current account balances. More importantly, such episodes tend to be accompanied by an acceleration of GDP growth, but afterwards growth has often dropped significantly. A comprehensive assessment of various policy responses to the large inflow episodes leads to three major conclusions. First, keeping public expenditure growth steady during episodes can help limit real currency appreciation and foster better growth outcomes in their aftermath. Second, resisting nominal exchange rate appreciation through sterilized intervention is likely to be ineffective when the influx of capital is persistent. Third, tightening capital controls has not in general been associated with better outcomes.

Financial Instability, Reserves, and Central Bank Swap Lines in the Panic of 2008
Obstfeld, M., J.C. Shambaugh & A.M. Taylor (2009)

The current account as a dynamic portfolio choice problem | Published   ScienceDirect Required
Didier, T. & A. Lowenkron (2009/12)

A Portfolio Model of Capital Flows to Emerging Markets | Published   Acrobat Required   ScienceDirect Required
Devereux, M.B. & A. Sutherland (2009)

Capital Flow Paradox, Speculation And External Adjustment In Emerging Market Economies
La Marca, M. (2009)

The composition of capital inflows when emerging market firms face financing constraints   ScienceDirect Required
Smith, K.A. & D. Valderrama (2009)

On the determinants of net international portfolio flows: A global perspective   ScienceDirect Required
De Santis, R.A. & M. Lührmann (2009)

Patterns of International Capital Raisings | Published
Gozzi, J.C., R. Levine & Sergio L. Schmukler (2009)

Remittances, financing constraints and growth volatility: Do remittances dampen or magnify shocks?   Acrobat Required
Coulibaly, D. (2009)

Remittances: An Automatic Output Stabilizer?   Acrobat Required
Chami, R., D. Hakura & P. Montiel (2009)

Global Savings and Global Investment: The Transmission of Identified Fiscal Shocks | Published
Feyrer, J. & J.C. Shambaugh (2009/12)

Net Capital Flows, Financial Integration, and International Reserve Holdings: The Recent Experience of Emerging Markets and Advanced Economies
Choi, W.G., S. Sharma & M. Strömqvist (2009)

A Macroeconomic Perspective on Reserve Accumulation   Wiley Interscience Required
Bar-Ilan, A. & N.P. Marion (2009)

Hoarding of International Reserves: Mrs Machlup's Wardrobe and the Joneses   Wiley Interscience Required
Cheung, Y-W. & X. Qian (2009)

What is Driving Reserve Accumulation? A Dynamic Panel Data Approach   Wiley Interscience Required
Bastourre, D., J. Carrera & J. Ibarlucia (2009)

Trade and Capital Flows: A Financial Frictions Perspective
Antràs, P. & R.J. Caballero (2009)

Capital account liberalization, financial development and industry growth: a synthetic view | Published   Acrobat Required   ScienceDirect Required
Eichengreen, B., R. Gullapalli & U. Panizza (2009/11)

International capital flows and U.S. interest rates   ScienceDirect Required
Warnock, F.E. & V.C. Warnock (2009)

Productivity Growth and Capital Flows: The Dynamics of Reforms
Buera, F.J. & Y. Shin (2009)

Why is There No Race to the Bottom in Capital Taxation?   Wiley Interscience Required
Plümper, T., V.E. Troeger & H. Winner (2009)

Credit Rationing and Exchange-Rate Stabilization: Examining the Relation between Financial Frictions, Exchange-Rate Volatility, Lending Rates, and Capital Inflows   Acrobat Required
Martinez, G. (2009)

Who Benefits from Capital Account Liberalization? Evidence from Firm-Level Credit Ratings Data
Prati, A., M. Schindler & P. Valenzuela (2009)

The financial crisis and sizable international reserves depletion: From 'fear of floating' to the 'fear of losing international reserves'?
Aizenman, J. & Y. Sun (2009)

Ageing and Export Dependency   Acrobat Required
Vistesen, C. (2009)

Hoarding International Reserves Versus a Pigovian Tax-Cum-Subsidy Scheme: Reflections on the Deleveraging Crisis of 2008-9, and a Cost Benefit Analysis | Published   ScienceDirect Required
Aizenman, J. (2009/11)

Endogenous Inflows of Speculative Capital and the Optimal Currency Appreciation Path   Acrobat Required
Li, M. & J. Qiu (2009)

Financial Integration and International Risk Sharing | Published   Acrobat Required   ScienceDirect Required
Bai, Y. & J. Zhang (2009/12)

A new perspective on “the new rule” of the current account   ScienceDirect Required
Tille, C. & E. van Wincoop (2009)

Why do foreigners invest in the United States?   ScienceDirect Required
Forbes, K.J. (2009)

International Reserves and Underdeveloped Capital Markets   Acrobat Required
Dominguez, K.M.E. (2009)

Composition of International Capital Flows: A Survey   SURVEY PAPER
Kirabaeva, K. & A. Razin (2009)

Intra-Industry Foreign Direct Investment   Ingenta Select Required
Alfaro, L. & A. Charlton (2009)

Volatility in International Capital Movements   Acrobat Required
Becker, C. & C. Noone (2009)

Gravity for FDI   Wiley Interscience Required
Kleinert, J. & F. Toubal (2010)

Fixed Costs, Foreign Direct Investment, and Gravity with Zeros   Wiley Interscience Required
Davies, R.B. & H. Kristjánsdóttir (2010)

Imperfect Capital Mobility: A General Approach to the Two-Sector Harris Todaro Model   Wiley Interscience Required
Choi, J-Y. & E.S.H. Yu (2010)

Liquidity, Institutional Quality and the Composition of International Equity Flows
Goldstein, I., A. Razin & H. Tong (2010)

Financial Development and the Patterns of International Capital Flows
von Hagen, J. & H. Zhang (2010)

Growth and Capital Flows with Risky Entrepreneurship | Published
Sandri, D. (2010/14)

Cross-Border Investment in Small International Financial Centers | Published   Wiley Interscience Required
Lane, P.R. & G.M. Milesi-Ferretti (2010/11)

Capital Flows, Consumption Booms and Asset Bubbles: A Behavioural Alternative to the Savings Glut Hypothesis | Published   Wiley Interscience Required
Laibson, D. & J. Mollerstrom (2010)

Financial Transactions Tax: Panacea, Threat, or Damp Squib?
Honohan, P. & S. Yoder (2010)

Macroeconomic Impacts of Foreign Exchange Reserve Accumulation
Fukuda, S-I. & Y. Kon (2010)

Demographics and the Anatomy of International Capital Flows
Vistesen, C. (2010)

Capital Flight: China's Experience   Acrobat Required
Cheung, Y-W. & X. Qian (2010)

Taxes, mobile capital, and economic dynamics in a globalizing world   ScienceDirect Required
Bretschger, L. (2010)

Private Capital Flows to Low Income Countries: Country-Specific Effects and the Lucas Paradox   Acrobat Required
van Wijnbergen, S. & C. Franken (2010)

Gravity in International Finance   Acrobat Required
Okawa, Y. & E. van Wincoop (2010)

Does Trade Cause Capital to Flow? Evidence from Historical Rainfalls
Kalemli-Ozcan, S. & A. Nikolsko-Rzhevskyy (2010)

Should larger reserve holdings be more diversified? | Published   Acrobat Required   Wiley Interscience Required
Beck, R. & S. Weber (2010/12)

FDI Flows to Low-Income Countries: Global Drivers and Growth Implications
Dabla-Norris, E., J. Honda, A. Lahreche & G. Verdier (2010)

Managerial ability and capital flows   ScienceDirect Required
Silva, A.C. (2010)

Do international remittances cause Dutch disease?
Edsel, B. (2010)

The Impact of Capital and Foreign Exchange Flows on the Competitiveness of Developing Countries
Bakardzhieva, D., S. Ben Naceur & B. Kamar (2010)

Capital mobility, balance of payments constraints, and economic growth: an empirical dynamic analysis   Acrobat Required
Meirelles-Filho, S.F. & F.G. Jayme Jr (2010)

How Do International Financial Flows to Developing Countries Respond to Natural Disasters?
David, A. (2010)

Determinants of capital inflows into Asia: The relevance of contagion effects as push factors   ScienceDirect Required
Brana, S. & D. Lahet (2010)

Determinants of Foreign Direct Investment: A Sectoral and Institutional Approach
Walsh, J.P & J. Yu (2010)

Commodity Windfalls, Polarization, and Net Foreign Assets: Panel Data Evidence on the Voracity Effect
Arezki, R. & M. Bruckner (2010)

Do Derivative Markets Contain Useful Information for Signaling "Hot Money" Flows?   Acrobat Required
Fung, J.K.W., R.I. Webb & W.H. Chan (2010)

Domestic Institutions and the Bypass Effect of Financial Globalization | Published   Acrobat Required
Ju, J. & S-J. Wei (2010)

International Capital Flows and Development: Financial Openness Matters | Published   ScienceDirect Required
Reinhardt, D.B.S., L.A. Ricci & T. Tressel (2010/13) P>Composition of Capital Flows: A Survey   SURVEY PAPER
Kirabaeva, K. & A. Razin (2010)

Adjusting to Capital Account Liberalization
Aoki, K., G. Benigno & N. Kiyotaki (2010)

The impact of population ageing on international capital flows
Narciso, A. (2010)

Adjusting to Capital Account Liberalization   Acrobat Required
Aoki, K., G. Benigno & N. Kiyotaki (2010)

When and Why Worry About Real Exchange Rate Appreciation? The Missing Link between Dutch Disease and Growth
Magud, N.E. & S. Sosa (2010)

International Capital Flows and Aggregate Output   Acrobat Required
von Hagen, J. & H. zhang (2010)

The Cost of Private Debt Over the Credit Cycle
Aykut, D., J.L. Francis & E. Tereanu (2010)

Remittances and the Equilibrium Real Exchange Rate: Theory and Evidence
Barajas, A., R. Chami, D. Hakura & P. Montiel (2010)

A Reappraisal of the Allocation Puzzle through the Portfolio Approach   Acrobat Required
Benhima, K. (2010)

Gross capital flows: dynamics and crises | Published   ScienceDirect Required
Broner, F., T. Didier, A. Erce & S.L. Schmukler (2011/13)

Home bias and the persistence of real exchange rates   ScienceDirect Required
Chen, S-L. & J-L. Wu (2011)

Population age structure, saving, capital flows and the real exchange rate: a survey of the literature   Wiley Interscience Required
Hassan, A.F.M., R. Salim & H. Bloch (2011)

Pricing-to-Market and the Failure of Absolute PPP
Alessandria, G. & J.P. Kaboski (2010)

Transition to FDI openness: reconciling theory and evidence   Acrobat Required
McGrattan, E.R. (2011)

International capital flows to emerging and developing countries: national and global determinants   Acrobat Required
Byrne, J.P. & N. Fiess (2011)

Margin-Based Asset Pricing and Deviations from the Law of One Price
Garleanu, N. & L.H. Pedersen (2011)

Evidence on financial globalization and crisis: capital raisings   Acrobat Required
Hale, G. (2011)

Capital Flows and their Impact on the Real Effective Exchange Rate | Published   Acrobat Required   ScienceDirect Required
Combes, J-L., T. Kinda & P. Plane (2011)

International capital flows and the returns to safe assets in the United States, 2003-2007
Bernanke, B.S., C. Bertaut, L.P. DeMarco & S. Kamin (2011)

A re-examination on dissecting the purchasing power parity puzzle   ScienceDirect Required
Wu, J-L., C. Lee & T-W. Wang (2011)

Multinational Corporations and Knowledge Flows: Evidence from Patent Citations   JSTOR Required
AlAzzawi, S. (2011)

A new approach to capital flows: Theory and evidence   ScienceDirect Required
Gu, X. & B. Huang (2011)

Risks for the Long Run and the Real Exchange Rate
Colacito, R. & M.M. Croce (2011)

How Different are FDI and FPI Flows?: Does Distance Alter the Composition of Capital Flows?   Acrobat Required
Hattari, R. & R.S. Rajan (2011)

Financial globalization and the raising of public debt   Acrobat Required
Azzimonti, M., E. de Francisco & V. Quadrini (2011)

Financial Globalization in Emerging Economies: Much Ado about Nothing?
Levy Yeyati, E. & T. Williams (2011)

Growth from International Capital Flows: The Role of Volatility Regimes
Mody, A. & A.P. Murshid (2011)

Causes of Asset Shortages in Emerging Markets
Chen, J. & P.A. Imam (2011)

Real Exchange Rate Movements in Developed and Developing Economies: an Interpretation of the Balassa-Samuelson's Framework   Acrobat Required
Dumrongrittikul, T. (2011)

World-consistent equilibrium exchange rates   ScienceDirect Required
Bénassy-Quéré, A., A. Lahrèche-Révil & V. Mignon (2011)

Measuring and explaining the volatility of capital flows to emerging countries   ScienceDirect Required
Broto, C., J. Díaz-Cassou & A. Erce (2011)

De facto financial openness and capital mobility   ScienceDirect Required
Younas, J. (2011)

Monetary Policy, Capital Inflows, and the Housing Boom   Acrobat Required
Sá, F. & T. Wieladek (2011)

Demographic Trends and International Capital Flows in an Integrated World   ScienceDirect Required
Marchiori, L. (2011)

When is quality of financial system a source of comparative advantage?   ScienceDirect Required
Ju, J. & S-J. Wei (2011)

When is FDI a capital flow?   ScienceDirect Required
Marin, D. & M. Schnitzer (2011)

Foreign Direct Investment and Wage Inequality: Evidence from China   ScienceDirect Required
Chen, Z., Y. Ge & H. Lai (2011)

Capital Flows, Push versus Pull Factors and the Global Financial Crisis
Fratzscher, M. (2011)

FDI from BRICs to LICs: Emerging Growth Driver?
Mlachila, M.< (2011)

The impact of changes in bank ownership structure on the allocation of capital: International evidence   ScienceDirect Required
Taboada, A.G. (2011)

Capital flows: Catalyst or Hindrance to economic takeoffs?
Aizenman, J. & V. Sushko (2011)

The Long-Run Relationship between Outward FDI and Total Factor Productivity: Evidence for Developing Countries   Acrobat Required
Herzer, D. (2011)

Do financial reforms complementarity and reforms sequence matter for international capital inflows?   Acrobat Required
Bicaba, Z.T. (2011)

Do remittances promote financial development?   ScienceDirect Required
Aggarwal, R., A. Demirgüç-Kunt & M.S. Marinez Pería (2011)

Corporate financial determinants of foreign direct investment   ScienceDirect Required
Forssbæck, J. & L. Oxelheim (2011)

Productivity Shocks, Stabilization Policies and the Dynamics of Net Foreign Assets   Acrobat Required
Di Giorgio, G. & S. Nistico (2011)

Roll Out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows   Wiley Interscience Required
Harding, T. & B.S. Javorcik (2011)

Portfolio Home Bias and External Habit Formation   Acrobat Required
Stathopoulos, A. (2011)

Consumption Risk-Sharing and the Real Exchange Rate: Why does the Nominal Exchange Rate Make Such a Difference?
Devereux, M.B. & V. Hnatkovska (2011)

The Penn–Balassa–Samuelson effect through the lens of the dependent economy model   ScienceDirect Required
Brock, P.L. (2011)

Growth Shocks and Portfolio Flows   Acrobat Required
Kiziler, E.E. (2011)

Volatility, Persistence and Nonlinearity of Simulated DSGE Real Exchange Rates | Published   Acrobat Required   ScienceDirect Required
Ahmad, Y., M.C. Lo & O. Mykhaylova (2011/13)

Rainfall, Financial Development, and Remittances: Evidence from Sub-Saharan Africa
Arezki, R. & M. Bruckner (2011)

Demand for international reserves in developing nations: A quantile regression approach   ScienceDirect Required
Sula, O. (2011)

A New Test of the Real Interest Rate Parity Hypothesis: Bounds Approach and Structural Breaks   Wiley Interscience Required
Bagdatoglou, G. & A. Kontonikas (2011)

Bank Relationships, Business Cycles, and Financial Crises
Hale, G. (2011)

ABS Inflows to the United States and the Global Financial Crisis
Bertaut, C., L.P. DeMarco, S.B. Kamin & R.W. Tryon (2011)

Does Trade Cause Capital to Flow? Evidence from Historical Rainfalls
Kalemli-Ozcan, S. & A. Nikolsko-Rzhevskyy (2011)

Sovereigns, Upstream Capital Flows and Global Imbalances
Alfaro, L., S. Kalemli-Ozcan & V. Volosovych (2011)

Managing Financial Integration and Capital Mobility---Policy Lessons From the Past Two Decades
Aizenman, J. & B. Pinto (2011)

Capital flows, push versus pull factors and the global financial crisis   Acrobat Required
Fratzscher, M. (2011)

FDI and Growth: What Cross-Country Industry Data Say   Acrobat Required
Cipollina, M., G. Giovannetti, F. Pietrovito & A.F. Pozzolo (2011)

Capital Flows and Economic Growth in the Era of Financial Integration and Crisis, 1990-2010
Aizenman, J., Y. Jinjarak & D. Park (2011)

Real exchange rate dynamics: The role of elastic labor supply   ScienceDirect Required
Morshed, A.K.M.M. & S.J. Turnovsky (2011)

A Linder Hypothesis for Foreign Direct Investment
Fajgelbaum, P.D., G.M. Grossman & E. Helpman (2011)

Determinants of Development Financing Flows from Brazil, Russia, India, and China to Low-Income Countries
Mwase, N. (2011)

Capital Inflows, Exchange Rate Flexibility, and Credit Booms
Magud, N.E., C.M. Reinhart & E.R. Vesperoni (2011)

Sovereigns, Upstream Capital Flows, and Global Imbalances
Alfaro, L., S. Kalemli-Ozcan & V. Volosovych (2011)

Disaggregated Capital Flows and Developing Countries’ Competitiveness   ScienceDirect Required
Ben Naceur, S., D. Bakardzhieva & B. Kamar (2011)

The impact of capital account liberalization measures
Vithessonthi, C. & J. Tongurai (2011)

Demography, capital flows and unemployment   Acrobat Required
Marchiori, L., O. Pierrard & H.R. Sneessens (2011)

Understanding the Recent Surge in the Accumulation of International Reserves
Vujanovic, P. (2011)

The Effect of Episodes of Large Capital Inflows on Domestic Credit
Furceri, D., S. Guichard & E. Rusticelli (2011)

Demography, Capital Flows and Unemployment   Acrobat Required
Marchiori, L., O. Pierrard & H.R. Sneessens (2011)

The Self-insurance Role of International Reserves and the 2008-2010 Crisis   Acrobat Required
Silva, A.F.A. (2011)

Global Imbalances, Exchange Rate Pegs and Capital Flows: A Closer Look
van den Noord, P. (2011)

International Capital Flows with Limited Commitment and Incomplete Markets
von Hagen, J. & H. Zhang (2012)

What Drove the Massive Hoarding of International Reserves in Emerging Economies? A Time-varying Approach   Wiley Interscience Required
Delatte, A-L. & J. Fouquau (2012)

Surges | Published   ScienceDirect Required
Ghosh, A.R., J.I. Kim, M.S. Qureshi & J. Zalduendo (2012/14)

The Feldstein-Horioka Puzzle and Spurious Ratio Correlation   ScienceDirect Required
Chu, K.H. (2012)

Asymmetric effects of trade costs on entry modes: Firm level evidence   ScienceDirect Required
Tekin-Koru, A. (2012)

Illicit money flows as motives for FDI   ScienceDirect Required
Perez, M.F., J.C. Brada & Z. Drabek (2012)

International Reserves and the Composition of Equity Capital Inflows | Published   Acrobat Required   Wiley Interscience Required
Qian, X. & A. Steiner (2012/14)

Assessing Real Exchange Rate Misalignments
Kubota, M. (2012)

Shifting Motives: Explaining the Buildup in Official Reserves in Emerging Markets since the 1980s
Ghosh, A.R., J.D. Ostry & C.G. Tsangarides (2012)

U.S. International Equity Investment
Ammer, J., S.B. Holland, D.C. Smith & F.E. Warnock (2012)

Remittances and Institutions: Are Remittances a Curse?   ScienceDirect Required
Abdih, Y., R. Chami, J. Dagher & P. Montiel (2012)

Coincident Indicators of Capital Flows
Miao, Y. & M. Pant (2012)

Southern Innovation and Reverse Knowledge Spillovers: A Dynamic FDI Model   Wiley Interscience Required
He, Y. & K.E. Maskus (2012)

VECM estimations of the PPP reversion rate revisited: The conventional role of relative price adjustment restored   ScienceDirect Required
Kim, H. (2012)

Exchange-Rate Dark Matter
Evans, M.D.D. (2012)

Changes in the second-moment properties of disaggregated capital flows   ScienceDirect Required
Contessi, S., P. De Pace & J.L. Francis (2012)

The performance of frequent acquirers: Evidence from emerging markets   ScienceDirect Required
Al Rahahleh, N., P.P. Wei (2012)

Net Foreign Asset (Com)position: Does Financial Development Matter?   Acrobat Required
Vermeulen, R. & J. de Haan (2012)

The International Regulatory Regime on Capital Flows
Pasini, F.L. (2012)

Global Imbalances and Foreign Asset Expansion by Developing Economy Central Banks   Acrobat Required
Gagnon, J.E. (2012)

International Reserves in Low Income Countries: Have They Served as Buffers?
Crispolti, V. & G.C. Tsibouris (2012)

International reserves and gross capital flows: Dynamics during financial stress   Acrobat Required
Alberola, E., A. Erce & J.M. Serena (2012)

Does the Current Account Still Matter?
Obstfeld, M. (2012)

Has Globalization Improved International Risk Sharing?   Wiley Interscience Required
Antonakakis, N. & J. Scharler (2012)

Sudden Floods, Macroprudention Regulation and Stability in an Open Economy   Acrobat Required
Agénor, P-R., K. Alper & L.P. da Silva (2012)

When banking systems meet currencies
Chang, C-Y. (2012)

Emerging economies' attraction of foreign direct investment   ScienceDirect Required
Groh, A.P. & M. Wich (2012)

Who Needs to Open the Capital Account?
Jeanne, O., A. Subramanian & J. Williamson (2012)

Capital Inflows, Financial Development, and Domestic Investment: Determinants and Inter-Relationships
Luca, O. & N. Spatafora (2012)

Capital Flow Management
Jeanne, O. (2012)

International Liquidity in a Multipolar World
Eichengreen, B. (2012)

Networked FDI: Sales and Sourcing Patterns of Japanese Foreign Affiliates
Baldwin, R. & T. Okubo (2012)

Two-way capital flows and global imbalances: a neoclassical approach   Acrobat Required
Wang, P., Y. Wen & Z. Xu (2012)

International Capital Flows and Debt Dynamics
Evans, M.D.D. (2012)

What do bank acquirers want? Evidence from worldwide bank M&A targets   ScienceDirect Required
Caiazza, S., A. Clare & A.F. Pozzolo (2012)

Financial Globalization in Emerging Countries: Diversification vs. Offshoring
Ceballos, F., T. Didier & S.L. Schmukler (2012)

Trend shocks and the countercyclical U.S. current account
Amdur, D. & E. Ersal Kiziler (2012)

Global excess liquidity and asset prices in emerging countries: A PVAR approach   ScienceDirect Required
Brana, S., M-L. Djigbenou & S. Prat (2012)

On the International Transmission of Shocks: Micro-Evidence from Mutual Fund Portfolios
Raddatz, C. & S.L. Schmukler (2012)

Factor Shares, Income Distribution and Capital Flows   Acrobat Required
Zuleta, H. (2012)

International Capital Flows and Credit Market Imperfections: a Tale of Two Frictions   Acrobat Required
Martin, A. & F. Taddei (2012)

Private Information, Capital Flows, and Exchange Rates
Gyntelberg, J., M. Loretan & T. Subhanij (2012)

Capital Mobility and International Sharing of Cyclical Risk | Published   ScienceDirect Required
Bengui, J., E.G. Mendoza & V. Quadrini (2012/13)

Transition to FDI openness: Reconciling theory and evidence   ScienceDirect Required
McGrattan, E.R. (2012)

Cherries for Sale: Export Networks and the Incidence of Cross-Border M&A | Published   ScienceDirect Required
Blonigen, B.A., L. Fontagne, N. Sly & F. Toubal (2012/14)

Effects of Capital Flow Liberalization-What is the Evidence from Recent Experiences of Emerging Market Economies?
Saadi Sedik, T. & T. Sun (2013)

The Role of Risk and Information for International Capital Flows: New Evidence from the SDDS
Hashimoto, Y. (2012)

Exploring the Dynamics of Global Liquidity
Maechler, A. (2012)

Financial Reforms and Capital Flows: Insights from General Equilibrium
Martin, A. & J. Ventura (2012)

Corporate tax effects on the quality and quantity of FDI   ScienceDirect Required
Becker, J., C. Fuest & N. Riedel (2012)

Determinants of Horizontal Spillovers from FDI: Evidence from a Large Meta-Analysis   ScienceDirect Required
Iršová, Z. & T. Havránek (2012)

Gross Inflows Gone Wild: Gross Capital Inflows, Credit Booms and Crises
Calderon, C. & M. Kubota (2012)

Financial Reforms and Capital Flows: Insights from General Equilibrium
Martin, A. & J. Ventura (2012)

Capital Flows and the Risk-Taking Channel of Monetary Policy | Published   ScienceDirect Required
Bruno, V. and H.S. Shin (2012/15)

Industrial Structure and Capital Flows
Jin, K. (2012)

Robust FDI determinants: Bayesian Model Averaging in the presence of selection bias   ScienceDirect Required
Eicher, T.S., L. Helfman & A. Lenkoski (2012)

Capital Mobility and Asset Pricing (pages 2469-2509)   Wiley Interscience Required
Duffie, D. & B. Strulovici (2013)

Debt- and Equity-Led Capital Flow Episodes
Forbes, K.J. & F.E. Warnock (2012)

Capital Account Openness and the Losses from Financial Frictions   Acrobat Required
Han, M. (2012)

Capital inflows and asset prices: Evidence from emerging Asia   ScienceDirect Required
Tillmann, P. (2013)

International Reserves and Rollover Risk
Bianchi, J., J.C. Hatchondo & L. Martinez (2013)

Risk-On/Risk-Off, Capital Flows, Leverage, and Safe Assets   Acrobat Required
McCauley, R.N. (2013)

The appeal of private targets in international acquisitions   ScienceDirect Required
Madura, J. & J. Susnjara (2013)

The interaction effects of financial openness and institutions on international capital flows   ScienceDirect Required
Okada, K. (2013)

Fire-sale FDI or Business as Usual? | Published   ScienceDirect Required
Alquist, R., R. Mukherjee & L. Tesar (2013/16)

On Returns Differentials
Curcuru, S.E., C.P. Thomas & F.E. Warnock (2013)

Understanding Global Liquidity | Published   ScienceDirect Required
Eickmeier, S., L. Gambacorta & B. Hofmann (2013/14)

Risk-On/Risk-Off, Capital Flows, Leverage, and Safe Assets
McCauley, R.N. (2013)

International reserves and rollover risk   Acrobat Required
Bianchi, J., J.C. Hatchondo & L. Martinez (2013)

Quantifying Productivity Gains from Foreign Investment
Fons-Rosen, C., S. Kalemli-Ozcan, B.E. Sorensen, C. Villegas-Sanchez & V. Volosovych (2013)

Capital flows under moral hazard   ScienceDirect Required
Tsyrennikov, V. (2013)

External Constraints and Endogenous Growth: Why Didn't Some Countries Benefit From Capital Flows?   Acrobat Required
Gente, K., M.A. León-Ledesma & C. Nourry (2013)

The Effect of Capital Flows Composition, on Output Volatility
Federico, P., C.A. Vegh & G. Vuletin (2013)

Capital Flows, Cross-Border Banking and Global Liquidity
Bruno, V. & H.S. Shin (2013)

Adjustment patterns to commodity terms of trade shocks: The role of exchange rate and international reserves policies   ScienceDirect Required
Aizenman, J., S. Edwards & D. Riera-Crichton (2013)

Foreign reserve management during the global financial crisis   ScienceDirect Required
Dominguez, K.M.E. (2013)

The cyclical properties of disaggregated capital flows   ScienceDirect Required
Contessi, S., P. De Pace & J.L. Francis (2013)

Causes of nonlinearities in low-order models of the real exchange rate   ScienceDirect Required
Ahmad, Y., M.C. Lo & O. Mykhaylova (2013)

The Investment Strategies of Sovereign Wealth Funds
Bernstein, S., J. Lerner & A. Schoar (2013)

Exchange Rate Uncertainty and International Portfolio Flows | Published   Acrobat Required   ScienceDirect Required
Caporale, G.M., F.M. Ali & N. Spagnolo (2013/15)

Why do emerging markets liberalize capital outflow controls? Fiscal versus net capital flow concerns   ScienceDirect Required
Aizenman, J. & G.K. Pasricha (2013)

Capital Flows to Emerging Market Economies: A Brave New World? | Published   ScienceDirect Required
Ahmed, S. & A. Zlate (2013/14)

The Financial Resource Curse   Recommended!   Acrobat Required
Benigno, G. & L. Fornaro (2013)

Abstract: This paper presents a model of financial resource curse, i.e. episodes of abundant access to foreign capital coupled with weak productivity growth. We study a two-sector, tradable and non-tradable, small open economy. The tradable sector is the engine of growth, and productivity growth is increasing in the amount of labor employed by firms in the tradable sector. A period of large capital inflows, triggered by a fall in the interest rate, is associated with a consumption boom. While the increase in tradable consumption is financed through foreign borrowing, the increase in non-tradable consumption requires a shift of productive resources toward the non-tradable sector at the expenses of the tradable sector. The result is stagnant productivity growth. We show that capital controls can be welfare-enhancing and can be used as a second best policy tool to mitigate the misallocation of resources during an episode of financial resource curse.

Policy Uncertainty Spillovers to Emerging Markets - Evidence from Capital Flows   Acrobat Required
Gauvin, L., C. McLoughlin & D. Reinhardt (2013)

On the Joint Test of the Uncovered Interest Parity and the Ex-ante Purchasing Power Parity   Wiley Interscience Required
Macchiarelli, C. (2013)

What is the Major Determinant of Credit Flows through Cross-Border Banking?   Acrobat Required
Shirota, T. (2013)

Migration and Cross-Border Financial Flows   Acrobat Required
Kugler, M., O. Levintal & H. Rapoport (2013)

Excess Reserves and Economic Activity   Acrobat Required
Dressler, S.J. & E. Kersting (2013)

The Accumulation of Foreign Exchange by Central Banks: Fear of Capital Mobility?   ScienceDirect Required
Steiner, A. (2013)

Domestic credit growth and international capital flows   Acrobat Required
Lane, P.R. & P. McQuade (2013)

Testing the Strategic Asset Allocation of Stabilization Sovereign Wealth Funds   Wiley Interscience Required
Bertoni, F. & S. Lugo (2013)

Financial Development, International Capital Flows, and Aggregate Output   ScienceDirect Required
von Hagen, J. & H. Zhang (2013)

A Growth Perspective on Foreign Reserve Accumulation   Acrobat Required
Cheng, G. (2013)

A Theory of the Competitive Saving Motive   ScienceDirect Required
Du, Q. & S-J. Wei (2013)

Demography and Low Frequency Capital Flows
Backus, D., T. Cooley & E. Henriksen (2013)

Do Capital Importing Countries Pay Higher Prices for their Imports of Goods?   ScienceDirect Required
Adam, A. & T. Moutos (2013)

Capital Flows are Fickle: Anytime, Anywhere
Bluedorn, J.C., R. Duttagupta, J. Guajardo & P. Topalova (2013)

Accounting for Reserves   ScienceDirect Required
Bayoumi, T. & C. Saborowski (2013)

Cross-Border Capital Flows into Real Estate   Acrobat Required
Baum, A.E., F. Fuerst & S. Milcheva (2013)

Structural and Cyclical Factors behind Current Account Balances   Wiley Interscience Required
Cheung, C., D. Furceri & E. Rusticelli (2013)

Mode of International Investment and Endogenous Risk of Expropriation   Wiley Interscience Required
Dadasov, R. & O. Lorz (2013)

The investment technology of foreign and domestic institutional investors in an emerging market   ScienceDirect Required
Patnaik, I. & A. Shah (2013)

Resource-based FDI and Expropriation in Developing Economies   ScienceDirect Required
Hajzler, C. (2013)

Current Account Balance and Dollar Standard: Exploring the Linkages   ScienceDirect Required
Steiner, A. (2013)

Capital Flows: Issues and Policies   Acrobat Required
Montiel, P. (2013)

Exchange Rate Fluctuations and International Portfolio Rebalancing   ScienceDirect Required
Gyntelberg, J., M. Loretan, T. Subhanij & E. Chan (2013)

Crowding Out Redefined: The Role of Reserve Accumulation
Reinhart, C.M. & T. Tashiro (2013)

Deposit insurance and private capital inflows: Further evidence   ScienceDirect Required
Altunbas, Y. & J. Thornton (2013)

Banking globalization, transmission, and monetary policy autonomy
Goldberg, L.S. (2013)

Graphical network models for international financial flows   Acrobat Required
Giudici, P. & A. Spelta (2013)

Global Factors in Capital Flows and Credit Growth   Acrobat Required
Bruno, V. & H.S. Shin (2013)

Why has Japan's Massive Government Debt Not Wreaked Havoc (Yet)?   Acrobat Required
Horioka, C.Y., T. Nomoto & A. Terada-Hagiwara (2013)

China's Growth, Stability, and Use of International Reserves
Aizenman, J., Y. Jinjarak & N.P. Marion (2013)

Risk, External Adjustment and Capital Flows   ScienceDirect Required
Evans, M.D.D. (2014)

For a Few Dollars More: Reserves and Growth in Times of Crises
Bussiere, M., G. Cheng, M.D. Chinn & N. Lisack (2014)

Global Liquidity through the Lens of Monetary Aggregates
Chung, K., J-E. Lee, E. Loukoianova, H. Park & H.S. Shin (2014)

Mapping the Shadow Banking System Through a Global Flow of Funds Analysis
Errico, L., A. Harutyunyan, E. Loukoianova, R. Walton, Y. Korniyenko, G. Amidzic, H. AbuShanab & H.S. Shin (2014)

The Effects of the Saving and Banking Glut on the U.S. Economy   ScienceDirect Required
Justiniano, A, G.E. Primiceri & A. Tambalotti (2014)

Remittances and Vulnerability in Developing Countries
Bettin, G., A. Presbitero & N. Spatafora (2014)

Contrarian Flows, Consumption and Expected Stock Returns   ScienceDirect Required
Zhang, Y. (2014)

The global long-term interest rate, financial risks and policy choices in EMEs
Turner, P. (2014)

Demography and Low-Frequency Capital Flows   ScienceDirect Required
Backus, D., T. Cooley & E. Henriksen (2014)

Surges and stops in FDI flows to developing countries: does the mode of entry make a difference?
Burger, M.J. & E.I. Ianchovichina (2014)

Ride the Wild Surf: An Investigation of the Drivers of Surges in Capital Inflows
Calderón, C. & M. Kubota (2014)

Safe Assets' Scarcity, Liquidity and Spreads   Acrobat Required
Chiesa, G. (2014)

Foreign Ownership of U.S. Safe Assets: Good or Bad?
Favilukis, J., S.C. Ludvigson & S. Van Nieuwerburgh (2014)

Tinker, taper, QE, bye? the effect of quantitative easing on financial flows to developing countries | Published   ScienceDirect Required
Lim, J.J., S. Mohapatra & M. Stocker (2014/16)

Global corporate bond issuance: what role for US quantitative easing?
Lo Duca, M., G. Nicoletti & A. Vidal Martinez (2014)

The Euro and The Geography of International Debt Flows
Hale, G. & M. Obstfeld (2014)

Competing back for foreign direct investment   ScienceDirect Required
Zhai, W. (2014)

Spillovers, capital flows and prudential regulation in small open economies   Acrobat Required
Castillo, P., C. Carrera, M. Ortiz & H. Vega (2014)

Global Liquidity and Drivers of Cross-Border Bank Flows
Cerutti, E., S. Claessens & L. Ratnovski (2014)

Global Financial Shocks and Foreign Asset Repatriation: Do Local Investors Play a Stabilizing Role?
Adler, G., M-L. Djigbenou & S. Sosa (2014)

International Taxation and Cross-Border Banking
Huizinga, H., J. Voget & W. Wagner (2014)

The Differential Effects of Bilateral Tax Treaties   Wiley Interscience Required
Blonigen, B.A., L. Oldenski & N. Sly (2014)

The two faces of cross-border banking flows: an investigation into the links between global risk, arms-length funding and internal capital markets   Acrobat Required
Reinhardt, D. & S. Riddiough (2014)

Institutions, Foreign Direct Investment, and Domestic Investment: Crowding Out or Crowding In?   ScienceDirect Required
Farla, K., D. de Crombrugghe & B. Verspagen (2014)

Accounting for Emerging Market Countries' International Reserves: Are Pacific Rim Countries Different?   ScienceDirect Required
Ghosh, A.R., J.D. Ostry & C.G. Tsangarides (2014)

Non-Traded Goods and Capital Flows to Developing Countries   Acrobat Required
Rothert, J. & J. Short (2014)

International Reserves and Gross Capital Flows Dynamics   Acrobat Required
Alberola, E., A. Erce & J.M. Serena (2014)

Immiserizing Capital Flows to Developing Countries   Acrobat Required
Bender, D. & W. Loewenstein (2014)

Why Don't Remittances Appear to Affect Growth?   Acrobat Required
Clemens, M. & D. McKenzie (2014)

Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries   De Gruyter Journals Required
Herrera-Echeverri, H., J. Haar & J.B. Estevez-Bretón (2014)

International Evidence on the Interaction between Cross-Border Capital Flows and Domestic Credit Growth
Arslan, Y. & T. Taskin (2014)

Uncovered Equity Parity and Rebalancing in International Portfolios   Acrobat Required
Curcuru, S.E., C.P. Thomas, F.E. Warnock & J. Wongswan (2014)

Outward foreign direct investment and sovereign risks in developing host country   ScienceDirect Required
Chen, F., F. Zhong & Y. Chen (2014)

International Asset Allocations and Capital Flows:The Benchmark Effect
Raddatz, C., S.L. Schmukler & T. Williams (2014)

Monetary and Macroprudential Policies to Manage Capital Flows
Medina Guzman, J.P. & J. Roldos (2014)

Capital Flow Deflection
Giordani, P., M. Ruta, H. Weisfeld & L. Zhu (2014)

International Reserves Before and After the Global Crisis: Is There No End to Hoarding?
Aizenman, J., Y-W. Cheung & H. Ito (2014)

Portfolio Flows, Global Risk Aversion and Asset Prices in Emerging Markets
Ananchotikul, N. & Z. Longmei (2014)

What determines cross-border bank lending and risk-taking? The effects of culture, geography, institutions, and information exchange   Acrobat Required
Owen, A.L. & J. Temesvary (2014)

Financial Stability and Financial Inclusion   Acrobat Required
Morgan, P.J. & V. Pontines (2014)

Sovereign credit ratings and the transnationalization of finance: Evidence from a gravity model of portfolio investment   Acrobat Required
Körner, F.M. & H-M. Trautwein (2014)

What determines the composition of international bank flows?   Acrobat Required
Kerl, C. & F. Niepmann (2014)

Can M&A activities act as a predictor of the performance of economic growth or stock prices?   ScienceDirect Required
Hsueh, S-J., Y.C. Tsao, C-H. Tu, Y-H. Chiu & S-B. Liu (2014)

A comparison of the internal and external determinants of global bank loans: Evidence from bilateral cross-country data   Acrobat Required
Aysun, U. & R. Hepp (2014)

FDI Spillovers and Industrial Policy: The Role of Tariffs and Tax Holidays   ScienceDirect Required
Du, L., A. Harrison & G. Jefferson (2014)

A Simple General Equilibrium Model of Large Excess Reserves   Acrobat Required
Ennis, H.M. (2014)

Global Banks' Dynamics and the International Transmission of Shocks   Acrobat Required
Garetto, S., M. Goetz & J. Fillat (2014)

The Power of International Reserves: the impossible trinity becomes possible
Mansour, L. (2014)

House Prices, Capital Inflows and Macroprudential Policy   Acrobat Required
Punzi, M.T. & C. Mendicino (2014)

International Capital Flows, External Assets and Output Volatility   Acrobat Required
Hoffmann, M., M. Krause & P. Tillmann (2014)

The home bias is here to stay   ScienceDirect Required
Levy, H. & M. Levy (2014)

The dynamics of international capital flows: Results from a dynamic hierarchical factor model   ScienceDirect Required
Förster, M., M. Jorra & P. Tillmann (2014)

External balances, trade flows and financial conditions   ScienceDirect Required
Evans, M.D.D. (2014)

Drivers of Structural Change in Cross-Border Banking since the Global Financial Crisis   Acrobat Required
Bremus, F. & M. Fratzscher (2014)

Cross-border Mergers and Greenfield Foreign Direct Investment   Wiley Interscience Required
Stepanok, I. (2014)

Uncertainty and International Capital Flows   Acrobat Required
Siemer, M., A. Verdelhan & F. Gourio (2014)

U.S. Investment in Global Bonds: As the Fed Pushes, Some EMEs Pull
Burger, J.D., R. Sengupta, F.E. Warnock & V.C. Warnock (2014)

Gross Private Capital Flows to Emerging Markets: Can the Global Financial Cycle Be Tamed?
Nier, E. & T.S. Sedik (2014)

Official Financial Flows, Capital Mobility, and Global Imbalances
Bayoumi, T., J.E. Gagnon & C. Saborowski (2014)

Tracing Out Capital Flows: How Financially Integrated Banks Respond to Natural Disasters   Acrobat Required
Cortes, K.R. & P.E. Strahan (2014)

Fed Policy Expectations and Portfolio Flows to Emerging Markets   Acrobat Required
Koepke, R. (2014)

The Effects of Financial Development on Foreign Direct Investment
Desbordes, R. & S-J. Wei (2014)

Capital Inflows, Exchange Rate Regimes and Credit Dynamics in Emerging Market Economies   Acrobat Required
Boudias, R. (2014)

Offshore Financial Centers in the Global Capital Network   De Gruyter Journals Required
Naitram, S.M. (2014)

Foreign Capital Inflow and Real Exchange Rate Appreciation in Developing Economies: Theory and Empirical Evidence   De Gruyter Journals Required
Biswas, A., B. Mandal & N. Saha (2014)

Foreign direct investment and its determinants: A regional panel causality analysis   ScienceDirect Required
Chan, M.W.L., K. Hou, X. Li & D.C. Mountain (2014)

Stability or Upheaval? The Currency Composition of International Reserves in the Long Run   Acrobat Required
Eichengreen, B., C. Livia & A. Mehl (2014)

When does FDI have positive spillovers? Evidence from 17 transition market economies   ScienceDirect Required
Gorodnichenko, Y., J. Svejnar & K. Terrell (2014)

A generalized empirical model of corruption, foreign direct investment, and growth   ScienceDirect Required
Delgado, M.S., N. McCloud & S.C. Kumbhakar (2014)

Expectations and the Dynamic Feedback between Foreign Direct Investment and Economic Growth   Acrobat Required
Escobari, D. & D. Vacaflores (2014)

Capital flows and macroprudential policies - A multilateral assessment of effectiveness and externalities   Acrobat Required
Beirne, J. & C. Friedrich (2014)

Capital Flows, Financial Intermediation and Macroprudential Policies   Acrobat Required
Ghilardi, M. & S.J. Peiris (2014)

Liberalised Capital Accounts and Volatility of Capital Flows and Foreign Exchange Rates
Bogdanov, B. (2014)

International Credit Flows and Pecuniary Externalities | Published
Brunnermeier, M.K. & Y. Sannikov (2015)

The Risky Capital of Emerging Markets
David, J.M., E. Henriksen & I. Simonovska (2015)

Estimating Capital Flows to Emerging Market Economies with Heterogeneous Panels   Acrobat Required
Hernandez Vega, M.A. (2015)

Evolution of Bilateral Capital Flows to Developing Countries at Intensive and Extensive Margins   Acrobat Required
Araujo, J., P. Lastauskas & C. Papageorgiou (2015)

What Drives International Portfolio Flows?   Acrobat Required
Sarno, L., I. Tsiakas & B. Ulloa (2015)

Non-FDI Capital Inflows in Low-Income Developing Countries: Catching the Wave?
Araujo, J.D., A. David, C. van Hombeeck & C. Papageorgiou (2015)

Do global banks facilitate foreign direct investment?   ScienceDirect Required
Poelhekke, N. (2015)

Technology transfers, foreign investment and productivity spillovers   ScienceDirect Required
Newman, C., J. Rand, T. Talbot & F. Tarp (2015)

Mercantilism and China's hunger for international reserves   Acrobat Required
Schroder, M. (2015)

What has Capital Liberalization Meant for Economic and Financial Statistics
Heath, R.M. (2015)

Too Much of a Good Thing? Prudent Management of Inflows under Economic Citizenship Programs
Xu, X., A. El-Ashram & J. Gold (2015)

Large Capital Inflows, Sectoral Allocation and Economic Performance | Published   ScienceDirect Required
Benigno, G., N. Converse & L. Fornaro (2015)

What Drives Capital Flows to Emerging Markets? A Survey of the Empirical Literature   Acrobat Required   SURVEY PAPER
Koepke, R. (2015)

Capital inflows and euro area long-term interest rates   ScienceDirect Required
Carvalho, D. & M. Fidora (2015)

Financial Flows and the International Monetary System | Published   Wiley Interscience Required
Passari, E. & H. Rey (2015)

International Reserves for Emerging Economies: A Liquidity Approach | Published   Acrobat Required   ScienceDirect Required
Jung, K.M. & J.H. Pyun (2015/16)

On the savings wedge in international capital flows   Acrobat Required
Rothert, J. (2015)

Foreign Capital Flows, Credit Growth and Macroprudential Policy in a DSGE Model with Traditional and Matter-of-Fact Financial Frictions   Acrobat Required
de Carvalho, F.A. & M.R. Castro (2015)

What drives the global interest rate   Acrobat Required
Ratti, R.A. & J.L. Vespignani (2015)

Banking across borders   ScienceDirect Required
Niepmann, F. (2015)

Institutions, Corporate Governance and Capital Flows   ScienceDirect Required
Mukherjee, R. (2015)

Monetary and macroprudential policy with foreign currency loans   Acrobat Required
Brzoza-Brzezina, M., M. Kolasa & K. Makarski (2015)

Push Factors and Capital Flows to Emerging Markets: Why Knowing Your Lender Matters More Than Fundamentals
Cerutti, E., S. Claessens & D. Puy (2015)

Fertility, Longevity and International Capital Flows   Acrobat Required
Barany, Z., N. Coeurdacier & S. Guibaud (2015)

Does Growth Attract FDI?
Iamsiraroj, S. & H. Doucouliagos (2015)

Joining the Club? Procyclicality of Private Capital Inflows in Low Income Developing Countries
Araujo, J.D., A. David, C. van Hombeeck & C. Papageorgiou (2015)

Patterns of International Capital Flows and Productivity Growth: New Evidence   Acrobat Required   Recommended!
MacDonald, M. (2015)

Abstract: Recent evidence from developing and emerging economies shows a negative correlation between growth and net capital inflows, a contradiction to neoclassical growth theory. I provide updated and disaggregated evidence on the origins of this puzzle. An analysis of the components of capital flows and of gross portfolio positions shows that foreign direct investment is directed towards countries with the highest growth rates, but that portfolio investment outflows exceed these inflows. Liberalized capital accounts further exacerbate this pattern. My results suggest a desire for international portfolio diversification in liquid assets by fast growing countries lies at the heart of the puzzle.

Large sample properties of the matrix exponential spatial specification with an application to FDI   ScienceDirect Required
Debarsy, N., F. Jin & L-F. Lee (2015)

Global Collateral: How Financial Innovation Drives Capital Flows and Increases Financial Instability   Acrobat Required
Fostel, A., J. Geanakoplos & G. Phelan (2015)

Securitized Markets and International Capital Flows   Acrobat Required
Phelan, G. & A.A. Toda (2015)

On the relation between capital flows and the current account   Acrobat Required
Oeking, A. & L. Zwick (2015)

Capital Inflows, Credit Growth, and Financial Systems
Igan, D. & Z. Tan (2015)

Global Liquidity and External Bond Issuance in Emerging Markets and Developing Economies
Feyen, E., S. Ghosh, K. Kibuuka & S. Farazi (2015)

Varieties of Capital Flows: What Do We Know   Acrobat Required
Levy Yeyati, E. & J. Zuniga (2015)

The impact of controlled foreign company legislation on real investments abroad. A multi-dimensional regression discontinuity design   ScienceDirect Required
Egger, P.H. & G. Wamser (2015)

The Role of International Reserves in Sovereign Debt Restructuring under Fiscal Adjustment   Acrobat Required
Tavares, T. (2015)

Portfolio Flows in a two-country RBC model with financial intermediaries   Acrobat Required
Kavli, H. & N. Viegi (2015)

Are Capital Inflows Expansionary or Contractionary? Theory, Policy Implications, and Some Evidence
Blanchard, O., J.D. Ostry, A.R. Ghosh & M. Chamon (2015)

The Coming Wave: Where Do Emerging Market Investors Put Their Money?   Acrobat Required
Karolyi, G.A., D.T. Ng & E. Prasad (2015)

Capital flows and the current account: Taking financing (more) seriously   Acrobat Required
Borio, C. & P. Disyatat (2015)

The recent growth of international reserves in developing economies: A monetary perspective   ScienceDirect Required
Pina, G. (2015)

International reserves and gross capital flow dynamics   Acrobat Required
Alberola-Ila, E., A. Erce &l J.M. Serena (2015)

Patterns of International Capital Flows and Productivity Growth: New Evidence   Wiley Interscience Required
MacDonald, M. (2015)

Tobin Tax and Volatility: A Threshold Quantile Autoregressive Regression Framework   Wiley Interscience Required
Damette, O. & B-J. Park (2015)

The Coming Wave: Where Do Emerging Market Investors Put Their Money?
Karolyi, G.A., D.T. Ng & E.S. Prasad (2015)

The cyclicality of (bilateral) capital inflows and outflows   Acrobat Required
Davis, J.S. (2015)

International Dollar Flows   Acrobat Required
Banegas, A., R. Judson, C. Sims & V. Stebunovs (2015)

Does investment in capacity encourage FDI?   ScienceDirect Required
Dong, Q. & J.C. Bárcena-Ruiz (2015)

Foreign direct investment and economic growth: A real relationship or wishful thinking?   ScienceDirect Required
Iamsiraroj, S. & M.A. Ulubasoglu (2015)

Global Economic Divergence and Portfolio Capital Flows to Emerging Markets   Acrobat Required
Mandalinci, Z. & H. Mumtaz (2015)

The second wave of global liquidity: Why are firms acting like financial intermediaries?
Caballero, J., U. Panizza & A. Powell (2015)

Balance sheet effects, foreign reserves and public policies   ScienceDirect Required
Cheng, G. (2015)

Self-Oriented Monetary Policy, Global Financial Markets and Excess Volatility of International Capital Flows | Published   ScienceDirect Required
Banerjee, R., M.B. Devereux & G. Lombardo (2015/16)

Bad Investments and Missed Opportunities? Postwar Capital Flows to Asia and Latin America
Ohanian, L., P. Restrepo-Echavarria & M.L.J. Wright (2015)

Explaining Foreign Holdings of Asia's Debt Securities: The Feldstein-Horioka Paradox Revisited
Horioka, C.Y., A. Terada-Hagiwara & T. Nomoto (2015)

The Impact of Investment Policy in a Changing Global Economy: A Review of the Literature   SURVEY PAPER
Echandi, R., J. Krajcovicova & C.Z. Qiang (2015)

Capital Account Liberalization and Inequality
Furceri, D. & P. Loungani (2015)

Do foreign institutional investors stabilize the capital market?   ScienceDirect Required
Han, L., Q. Zheng, L. Li & L. Yin (2015)

Risk-taking channels and capital inflows into the US treasuries   ScienceDirect Required
Tobe, S. (2015)

Secular drivers of the global real interest rate   Acrobat Required
Rachel, L. & T. Smith (2015)

Changes in the Global Investor Base and the Stability of Portfolio Flows to Emerging Markets
Brandao-Marques, L., G. Gelos, H. Ichiue & H. Oura (2015)

On the explanation of the Lucas Paradox   ScienceDirect Required
Göktan, M.G. (2015)

Liquidity traps, capital flows
Acharya, S. & J. Bengui (2015)

The Role of International Reserves Holding in Buffering External Shocks   Acrobat Required
Allegret, J-P. & A. Sallenave (2016)

Migrants, Ancestors, and Investment
Burchardi, K.B., T. Chaney & T.A. Hassan (2016)

Global Cycles: Capital Flows, Commodities, and Sovereign Defaults, 1815-2015
Reinhart, C.M., V. Reinhart & C. Trebesch (2016)

Do capital flows change domestic credit allocation?   ScienceDirect Required
Samarina, A. & D. Bezemer (2016)

Taking gravity online: the role of virtual proximity in international finance   Acrobat Required
Hellmanzik, C. & M. Schmitz (2016)

Human capital and international portfolio diversification: a reappraisal | Published   ScienceDirect Required
Bretscher, L., C. Julliard & C. Rosa (2016)

Safe Asset Scarcity and Aggregate Demand
Caballero, R.J., E. Farhi & P-O. Gourinchas (2016)

Cross-border M&As and innovative activity of acquiring and target firms   ScienceDirect Required
Stiebale, J. (2016)

The internationalization process of firms: From exports to FDI   ScienceDirect Required
Conconi, P., A. Sapir & M. Zanardi (2016)

The 'Real' Explanation of the Feldstein-Horioka Puzzle
Ford, N. & C.Y. Horioka (2016)

A Meta-Analysis of FDI and Productivity Spillovers in Developing Countries   Wiley Interscience Required   SURVEY PAPER
Demena, B.A. & P.A.G. van Bergeijk (2016)

Does reserve accumulation crowd out investment?   ScienceDirect Required
Reinhart, C.M., V. Reinhart & T. Tashiro (2016)

Jumps in equilibrium prices and asymmetric news in foreign exchange markets   ScienceDirect Required
El Ouadghiri, I. & R. Uctum (2016)

Unconventional monetary policy and capital flows   ScienceDirect Required
Kiendrebeogo, Y. (2016)

Optimal Reserves in Financially Closed Economies
Jeanne, O. & D. Sandri (2016)

Geography and Realty Prices: Evidence from International Transaction-Level Data   Acrobat Required
Miyakawa, D., C. Shimizu & I. Uesugi (2016)

Quantitative Easing and United States Investor Portfolio Rebalancing Towards Foreign Assets   Acrobat Required
Barroso, J.B.R.B. (2016)

International Financial Flows in the New Normal: Key Patterns (and Why We Should Care)   Acrobat Required
Bussière, M., J. Schmidt & N. Valla (2016)

Aging, international capital flows and long-run convergence   Acrobat Required
Ganon, F., G. Le Garrec & V. Touzé (2016)

Optimal Reserves in Financially Closed Economies
Jeanne, O. & D. Sandri (2016)

Do short-term international capital inflows drive China's asset markets?   ScienceDirect Required
Wang, C-H., J-T. Hwang & C-P. Chung (2016)

Bilateral Investment Treaties and FDI: Does the Sector Matter?   ScienceDirect Required
Colen, L., D. Persyn & A. Guariso (2016)

Capital Inflow Transmission of Monetary Policy to Emerging Markets   Acrobat Required
Olani, A. (2016)

Does Real Estate Defy Gravity? An Analysis of Foreign Real Estate Investment Flows   Wiley Interscience Required
McAllister, P. & A. Nanda (2016)

Asymmetric growth effect of capital flows: Evidence and quantitative theory   ScienceDirect Required
Eng, Y-K. & C-Y. Wong (2016)

The Imbalanced Catch-up to Rational Expectations: Capital Flows during Convergence   Acrobat Required
Cozzi, G. & M. Davenport (2016)

Repatriation taxes and outbound M&As   ScienceDirect Required
Feld, L.P., M. Ruf, U. Scheuering, U. Schreiber & J. Voget (2016)

China's capital flight: Pre- and post-crisis experiences   ScienceDirect Required
Cheung, Y-W., S. Steinkamp & F. Westermann (2016)

(When) Should We Use Foreign Direct Investment Data to Measure the Activities of Multinational Corporations? Theory and Evidence   Wiley Interscience Required
Wacker, K.M. (2016)

Can Countries Rely on Foreign Saving for Investment and Economic Development?   Acrobat Required
Cavallo, E., B. Eichengreen & U. Panizza (2016)

On the savings wedge in international capital flows   ScienceDirect Required
Rothert, J. (2016)

Homeward bound FDI: Are migrants a bridge over troubled finance?   ScienceDirect Required
Cuadros, A., J. Martín-Montaner & J. Paniagua (2016)

What drives interdependence of FDI among host countries? The role of geographic proximity and similarity in public debt   ScienceDirect Required
Alamá-Sabater, L., B. Heid, E. Jiménez-Fernández & L. Márquez-Ramos (2016)

Heterogeneous Frictional Costs Across Industries in Cross-border Mergers and Acquisitions
Blonigen, B.A. & D. Lee (2016)

Euro Currency Risk and the Geography of Debt Flows to Peripheral European Monetary Union Members | Published   ScienceDirect Required
Ersal-Kizilera, E. & H. Nguyen (2016)

Capital Inflow Surges and Consequences   Acrobat Required
Ghosh, A.R. & M.S. Qureshi (2016)

The information role of advisors in mergers and acquisitions: Evidence from acquirers hiring targets' ex-advisors   ScienceDirect Required
Chang, X., C. Shekhar, L.H.K. Tam & J. Yao (2016)

The great moderation in international capital flows: a global phenomenon?   Acrobat Required
McQuade, P. & M. Schmitz (2016)

Foreign Official Holdings of U.S Treasuries, Stock Effect and the Economy: A DSGE Approach
Francois, J.N. (2016)

Partners, Not Debtors: The External Liabilities of Emerging Market Economies   Acrobat Required
Joyce, J. (2016)

What Makes US Government Bonds Safe Assets?
He, Z., A. Krishnamurthy & K. Milbradt (2016)

A Model of Fickle Capital Flows and Retrenchment: Global Liquidity Creation and Reach for Safety and Yield
Caballero, R.J. & A. Simsek (2016)

Capital inflows - the good, the bad and the bubbly   Acrobat Required
Hoggarth, G., C. Jung & D. Reinhardt (2016)

International Borrowing Cycles: A New Historical Database
Kaminsky, G.L. (2016)

Emerging Market Capital Flows and U.S. Monetary Policy   Acrobat Required
Clark, J., N. Converse, B. Coulibaly & S.B. Kamin (2016)

The holders and issuers of international portfolio securities   ScienceDirect Required
Galstyan, V., P.R. Lane, C. Mehigan & R. Mercado (2016)

Capital Flows to Developing Countries: Is There an Allocation Puzzle?   Acrobat Required
Schroth, J. (2016)

Policy uncertainty, irreversibility, and cross-border flows of capital   ScienceDirect Required
Julio, B. & Y. Yook (2016)

Did FDI Really Cause Chinese Economic Growth? A Meta-Analysis   ScienceDirect Required
Gunby, P., Y. Jin & W.R. Reed (2016)

Foreign Direct Investment and Investor Sentiment: A Causal Relationship   De Gruyter Journals Required
Hassan, M.K., M. Rashid & E. Castro (2016)

Real Effects of Capital Inflows in Emerging Markets
Igan, D.O., A.M. Kutan & A. Mirzae (2016)

Not All Surges of Gross Capital Inflows Are Alike   Acrobat Required
Mercado Jr., R. (2016)

Joining the club? Procyclicality of private capital inflows in lower income developing economies   ScienceDirect Required
Araujo, J.D., A.C. David, C. van Hombeeck & C. Papageorgiou (2017)

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Currency Competition

Toward a Theory of International Currency   Recommended!   JSTOR Required
Matsuyama, K., N. Kiyotaki & A. Matsui (1993)

Abstract: Our goal is to provide a theoretical framework in which both positive and negative aspects of international currency can be addressed in a systematic way. To this end, we use the framework of random matching games and develop a two country model of the world economy, in which two national fiat currencies compete and may be circulated as media of exchange. There are multiple equilibrium which differ in the areas of circulation of the two currencies. In one equilibrium, the two national currencies are circulated only locally. In another, one of the national currencies is circulated as an international currency. There is also an equilibrium in which both currencies are accepted internationally. We also find an equilibrium in which the two currencies are directly exchanged. The existence conditions of these equilibria are characterized, using the relative country size and the degree of economic integration as the key parameters. In order to generate sharper predictions in he presence of multiple equilibria, we discuss an evolutionary approach to equilibrium selection, which is used to explain the evolution of the international currency as the two economies become more integrated. Some welfare implications are also discussed. For example, a country can improve its national welfare by letting its own currency circulated internationally, provided the domestic circulation is controlled for. When the total supply is fixed, however, a resulting currency shortage may reduce the national welfare.

Currency Exchange in a Random Search Model   Recommended!   JSTOR Required
Zhou, R. (1997)

Abstract: This paper investigates foreign exchange trading, a phenomenon that typically accompanies international trade. A search-theoretic general equilibrium approach is adopted to study a two-country, two-currency model. For some parameter values of the model, there exist some pure-strategy equilibria in which commodity-currency trade is conducted primarily through local currency and in which there is active currency-currency exchange. The coexistence of valued foreign currency and its local non-acceptability conforms largely with the country-specific cash-in-advance constraint that is often assumed exogenously in international finance literature.

Transactions costs and vehicle currencies   Recommended!   ScienceDirect Required
Black, S.W. (1991)

Abstract: Using a simple model of transactions costs in the interbank foreign exchange market and a model of vehicle currency use, the interaction between transactions costs and vehicle currency use is explored. The impact of volume on bid–ask spreads is estimated from cross-section time series data on seven currencies. Data on transactions costs and the currency denomination of trade and capital transactions are used to estimate changes in the attractiveness of using the US dollar as a vehicle between 1980 and 1987. The data suggest a modest reduction in the attractiveness and use of the dollar as a vehicle.

International Trade and Currency Exchange   Recommended!   JSTOR Required
Rey, H. (2002)

Abstract: On the international scene, away from national legal rules, the use of different currencies is largely due to the operation of the "Invisible Hand". The paper develops a three-country model of the world economy. This links real trade patterns with currency exchange structures in a general equilibrium framework which includes transaction costs on foreign exchange markets. In the presence of strategic complementarities, there are multiple equilibrium structures of currency exchange for a given underlying real trade pattern. The existence conditions of these different equilibria are characterized, using the trade links between countries as the key parameters. Finally, repercussions on world output of the choice of a currency exchange structure are analysed.

An Information Approach to International Currencies | Published   ScienceDirect Required
Lyons, R.K. & M.J. Moore (2005/09)

Vehicle Currency Use in International Trade | Alternative | Published   ScienceDirect Required
Goldberg, L.S. & C. Tille (2005/08)

Sterling's Past, Dollar's Future: Historical Perspective on Reserve Currency Competition
Eichengreen, B. (2005)

State "Currencies" and the Transition to the U.S. Dollar: Clarifying Some Confusions   Ingenta Select Required
Michener, R.W. & R.E. Wright (2005)

Will the Euro Eventually Surpass the Dollar as Leading International Reserve Currency
Chinn, M. & J. Frankel (2005)

A Theory of International Currency and Seigniorage Competition | Published   Acrobat Required   ScienceDirect Required
Li, Y. & A. Matsui (2005/09)

The Ties that Divide: A Network Analysis of the International Monetary System
Flandreau, M. & C. Jobst (2005)

The Empirics of International Currencies: Historical Evidence | Published nbsp; Acrobat Required   Wiley Interscience Required
Flandreau, M. & C. Jobst (2006/09)

The Euro's Challenge to the Dollar: Different Views from Economists and Evidence from COFER (Currency Composition of Foreign Exchange Reserves) and Other Data
Lim, E-G. (2006)

Optimal Currency Shares in International Reserves: The Impact of the Euro and the Prospects for the Dollar
Papaioannou, E., R. Portes & G. Siourounis (2006)

The International Role of the Dollar and Trade Balance Adjustment
Goldberg, L.S. & C. Tille (2006)

Money and capital as competing media of exchange   Acrobat Required
Lagos, R. & G. Rocheteau (2006)

Inflation and dollarization in a dual-currency search-theoretic model   ScienceDirect Required
Chang, S.S. (2006)

On the Welfare Benefits of an International Currency | Published   ScienceDirect Required
Kannan, P. (2007/09)

Float on a note   ScienceDirect Required
Wallace, N. & T. Zhu (2007)

The euro as a reserve currency: a challenge to the pre-eminence of the US dollar?
Galati, G. & P.D. Wooldridge (2007)

Currency Preferences in a Tri-Polar Model of Foreign Exchange   Acrobat Required
Melecky, M. (2007)

Asymmetric government transaction policies and currencies substitutability   ScienceDirect Required
Marchesiani, A. & P. Senesi (2007)

The growing role of the euro in emerging market finance
Masson, P.R. (2007)

International Money and Finance   Acrobat Required
Hallwood, P. & R. MacDonald (2008)

Macroeconomic Interdependence and the International Role of the Dollar | Published   ScienceDirect Required
Goldberg, L.S. & C. Tille (2008/09)

Vehicle Currency | Published   Acrobat Required   Recommended!   Wiley Interscience Required
Devereux, M.B. & S. Shi (2008/13)

Abstract: While in principle, international payments could be carried out using any currency or set of currencies, in practice, the US dollar is predominant in international trade and financial flows. The dollar acts as a `vehicle currency' in the sense that agents in non-dollar economies will generally engage in currency trade indirectly using the US dollar rather than using direct bilateral trade among their own currencies. Indirect trade is desirable when there are transactions costs of exchange. This paper constructs a dynamic general equilibrium model of a vehicle currency. We explore the nature of the efficiency gains arising from a vehicle currency, and show how this depends on the total number of currencies in existence, the size of the vehicle currency economy, and the monetary policy followed by the vehicle currency's government. We find that there can be very large welfare gains to a vehicle currency in a system of many independent currencies. But these gains are asymmetrically weighted towards the residents of the vehicle currency country. The survival of a vehicle currency places natural limits on the monetary policy of the vehicle country.

The Macroeconomic Implications of a Key Currency
Canzoneri, M., R.E. Cumby, B. Diba & D. Lopez-Salido (2008)

Currencies, competition, and clans   ScienceDirect Required
Kocenda, E., J. Hanousek & D. Engelmann (2008)

Foreign-currency bonds - currency choice and the role of uncovered and covered interest parity   Acrobat Required
Habib, M.M. & M. Joy (2008)

Liquidity Premium and International DSeigniorage Payments   Acrobat Required
Eden, B. (2009)

Why the Euro Will Rival the Dollar   Acrobat Required   Recommended!
Chinn, M. & J. Frankel (2008)

Abstract: The euro has arisen as a credible eventual competitor to the dollar as leading international currency, much as the dollar rose to challenge the pound 70 years ago. This paper uses econometrically-estimated determinants of the shares of major currencies in the reserve holdings of the world's central banks. Significant factors include: size of the home country, rate of return, and liquidity in the relevant home financial center (as measured by the turnover in its foreign exchange market). There is a tipping phenomenon, but changes are felt only with a long lag (we estimate a weight on the preceding year's currency share around .9). The equation correctly predicts out-of-sample a (small) narrowing in the gap between the dollar and euro over the period 1999-2007. This paper updates calculations regarding possible scenarios for the future. We exclude the scenario where the United Kingdom joins euroland. But we do take into account of the fact that London has nonetheless become the de facto financial center of the euro, more so than Frankfurt. We also assume that the dollar continues in the future to depreciate at the trend rate that it has shown on average over the last 20 years. The conclusion is that the euro may surpass the dollar as leading international reserve currency as early as 2015.

Monetary Geography Before the Industrial Revolution
Flandreau, M., C. Galimard, C. Jobst & M.D.P. Nogués Marco (2009)

One or Two Monies? | Published   ScienceDirect Required
Hua, J.J. & D. Mei (2009/10)

Secondary currency: An empirical analysis   ScienceDirect Required
Colacelli, M. & D.J.H. Blackburn (2009)

Crash Risk in Currency Markets
Farhi, E., S.P. Fraiberger, X. Gabaix, R. Ranciere & A. Verdelhan (2009)

The Euro at Ten: The Next Global Currency?   Recommended!
Pisani-Ferry, J. & A.S. Posen (editors) (2009)

Abstract: Over the first ten years of its existence, the euro has proved to be more than a powerful symbol of collective identity.It has provided price stability to previously inflation-prone countries; it has offered a shelter against currency crises; and it has by and large been conducive to budgetary discipline. The eurozone has attracted five new members in addition to the initial eleven, and many countries in Europe wish to adopt it. The euro has also been successful internationally. Even though research presented in this volume confirms that it has not rivaled the dollar's world currency status, it has certainly become a strong regional currency in Europe and the Mediterranean region. Some countries in the region have de facto adopted it, several peg to it, and many have become at least partially euroized. However, the euro's impressive first decade is likely to be followed by a much more difficult period. The present financial crisis is posing at least two important challenges: real economic adjustment within the euro area and maintenance of fiscal and financial stability without a central government authority capable of taking appropriate financial and fiscal decisions in difficult times. The papers and remarks in this volume demonstrate that the euro has proved to be attractive as a fair weather currency for countries and investors well beyond its borders. But it remains to be seen whether it is equipped to also succeed as a stormy weather currency.

Global roles of currencies   Acrobat Required
Thimann, C. (2009)

Currency Internationalisation: Analytical and Policy Issues   Acrobat Required
Genberg, H. (2009)

Will the Dollar be Dethroned as the Main Reserve Currency?
Carbaugh, R.J. & D.W. Hedrick (2009)

Foreign Demand for Domestic Currency and the Optimal Rate of Inflation
Schmitt-Grohé, S. & M. Uribe (2009)

Managed Floats to Damp Shocks like 1982-5 and 2006-9: Field and Laboratory Evidence for Chinese Interest in a Single World Currency   Acrobat Required
Pope, R., R. Selten, S. Kube & J. von Hagen (2009)

The hysteresis of currency substitution: Currency risk vs. network externalities   ScienceDirect Required
Valev, N.T. (2010)

Offshore Markets for the Domestic Currency: Monetary and Financial Stability Issues   Acrobat Required
He, D. & R.N. McCauley (2010)

The euro as a reserve currency for global investors   Acrobat Required
Viceira, L.M. & R. Gimeno (2010)

Choice of Collateral Currency   Acrobat Required
Fujii, M. & A. Takahashi (2010)

The renminbi as an international currency   ScienceDirect Required
Eichengreen, B. (2011)

Beyond the dollar   ScienceDirect Required
Kenen, P.B. (2011)

The future tri-polar international monetary system   ScienceDirect Required
Salvatore, D. (2011)

Renminbi Rules: The Conditional Imminence of the Reserve Currency Transition   Acrobat Required
Subramanian, A. (2011)

International Transmission of Monetary Shocks and the Non-Neutrality of International Money | Published   Acrobat Required   Wiley Interscience Required
Cheng, W. & D. Zhang (2011/12)

Monetary Policy under Leviathan Currency Competition   Acrobat Required
Waknis, P. (2011)

China's Dominance Hypothesis and the Emergence of a Multi-Currency System | Published   Wiley Interscience Required
Fratzscher, M. & A. Mehl (2011/14)

The international role of the dollar: Does it matter if this changes?
Goldberg, L. (2011)

RMB Internationalization: Onshore/Offshore Links
Maziad, S. & J.S. Kang (2012)

When did the dollar overtake sterling as the leading international currency? Evidence from the bond markets | Published   ScienceDirect Required
Chitu, L., B. Eichengreen & A.J. Mehl (2012/13)

The Dollar and its Discontents
Jeanne, O. (2012)

Currency substitution, inflation, and welfare   ScienceDirect Required
Özbilgin, H.M. (2012)

The Dollar Shortage in Global Banking and the International Policy Response   Wiley Interscience Required
McGuire, P. & G. von Peter (2012)

The Renminbi Bloc Is Here: Asia Down, Rest of the World to Go?   Acrobat Required
Subramanian, A. & M. Kessler (2012)

A driver currency hypothesis   ScienceDirect Required
Wang, P.J. (2012)

An Information-Based Theory of International Currency | Published   Acrobat Required   ScienceDirect Required
Zhang, C. (2013/144)

Gauging the Safehavenness of Currencies   Acrobat Required
Wong, A. & T. Fong (2013)

The Curious Case of the Yen as a Safe Haven Currency: A Forensic Analysis
Botman, D.P.J., I.E. Carvalho Filho & R.W. Lam (2013)

Will the Renminbi Emerge as an International Reserve Currency?   Wiley Interscience Required
Lee, J-W. (2014)

E-Money: Efficiency, Stability and Optimal Policy   Acrobat Required
Chiu, J. & T-N. Wong (2014)

Foreign exchange reserve diversification and the "exorbitant privilege"   Acrobat Required
Cova, P., P. Pagano & M. Pisani (2014)

The impact of yuan internationalization on the euro-dollar exchange rate   Acrobat Required
Bénassy-Quéré, A. & Y. Forouheshfar (2014)

Network Effects in Currency Internationalisation: Insights from BIS Triennial Surveys and Implications for the Renminbi   Acrobat Required
He, D. & X. Yu (2014)

Redback Rising: China's Bilateral Swap Agreements and Renminbi Internationalization   Wiley Interscience Required
Liao, S. & D. McDowell (2014)

The euro as an international currency   Acrobat Required
Bénassy-Quéré, A. (2015)

A Model of the Reserve Asset   Acrobat Required
He, Z., A. Krishnamurthy & K. Milbradt (2015)

The euro as an international currency   Acrobat Required
Benassy-Quere, A. (2015)

The geographic distribution of international currencies and RMB internationalization   Acrobat Required
He, Q., I. Korhonen, J. Guo & F. Liu (2015)

RMBI or RMBR: Is the Renminbi Destined to Become a Global or Regional Currency?
Eichengreen, B. & D. Lombardi (2015)

Carry funding and safe haven currencies: A threshold regression approach   ScienceDirect Required
Hossfeld, O. & R. MacDonald (2015)

Currency composition of reserves, trade invoicing and currency movements   ScienceDirect Required
Ito, H., R.N. Mccauley & T. Chan (2015)

Can Currency Competition Work?
Fernandez-Villaverde, J. & D. Sanches (2016)

Inertia of the U.S. Dollar as a Key Currency through the Two Crises   Acrobat Required
Ogawa, E. & M. Muto (2016)

Determining global currency bloc equilibria: An empirical strategy based on estimates of anchor currency choice   ScienceDirect Required
Fischer. C. (2016)

Intra-safe haven currency behavior during the global financial crisis   ScienceDirect Required
Fatum, R. & Y. Yamamoto (2016)

A New Financial Order in Asia: Will a RMB bloc emerge?
Ito, T. (2016)

The inefficiency of Bitcoin   ScienceDirect Required
Urquhart, A. (2016)

Trade invoicing in major currencies in the 1970s-1990s: Lessons for renminbi internationalization   ScienceDirect Required
Ito, H. & M. Kawai (2016)

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Exchange Rate Determination (Nominal)

Expectations and Exchange Rate Dynamics   Recommended!   JSTOR Required
Dornbusch, R. (1976)

Abstract: The paper develops a theory of exchange rate movements under perfect capital mobility, a slow adjustment of goods markets relative to asset markets, and consistent expectations. The perfect foresight path is derived and it is shown that along that path a monetary expansion causes the exchange rate to depreciate. An initial overshooting of exchange rates causes is shown to derive from the differential adjustment speed of markets. The magnitude and persistence of the overshooting is developed in terms of the structural parameters of the model. To the extent that output responds to a monetary expansion in the short run, this acts as a dampening effect on exchange rate depreciation and may, in fact, lead to an increase in interest rates.

A Theory of Exchange Rate Determination   Recommended!   JSTOR Required
Stockman, A.C. (1980)

Abstract: This paper develops an equilibrium model of the determination of exchange rates and prices of goods. Changes in relative prices of goods, due to supply or demand shifts, induce changes in exchange rates and deviations from purchasing power parity. These changes may create a correlation between the exchange rate and the terms of trade, but this correlation cannot be exploited by the government to affect the terms of trade by foreign exchange market operations.

Empirical Exchange Rate Models of the Seventies: Do They Fit Out of Sample?   Recommended!
Meese, R. & K. Rogoff (1983)

Abstract: This study compares the out-of-sample forecasting accuracy of various structural and time series exchange rate models. We find that a random walk model performs as well as any estimated model at one to twelve month horizons for dollar/pound, dollar/mark, dollar/yen and trade-weighted dollar exchange rates. The candidate structural models include the flexible price (Frenkel-Bilson) and sticky-price (Dornbusch-Frankel) monetary models, and a sticky-price model which incorporates the current account (Hooper-Morton). The structural models perform poorly despite the fact that we base their forecasts on actual realized values of future explanatory variables.

Rational Expectations and Exchange Rate Dynamics   Recommended!   JSTOR Required
Wickens, M.R. (1984)

Abstract: Dornbusch's overshooting model of the exchange rate has proved a very influential alternative to the monetary model. The original Dornbusch model was specified in continuous time and assumed perfect foresight. It also imposed the restriction of a sticky price level which does not respond instantaneously to new information. While convenient for analytic purposes, this particular model is less suitable for empirical analysis in which the data are aggregated over time and expectations are not formed perfectly. This paper presents a discrete time, rational expectations version of the Dornbusch model in which the price level is permitted to respond immediately, but not necessarily fully, to new information. The resulting dynamic behaviour of the exchange rate is analysed and interpreted. The conditions under which exchange rate overshooting occurs are derived and the effect of pre-announced policy changes are studied. Although the main purpose of the paper is expositional, an interesting feature of the results is that price stickyness is shown to be neither a necessary nor a sufficient condition for a change in monetary policy to bring about exchange rate overshooting.

The Equilibrium Approach to Exchange Rates   Recommended!   Acrobat Required
Stockman, A.C. (1987)

Abstract: The disequilibrium theory of exchange rates has come under increasing criticism in recent years. It conflicts with available evidence and an alternative equilibrium theory based on simple economic principles has been developed. The new theory has completely different implications and policy prescriptions from the earlier theory, which underlies most current public policy discussions. This article summarizes the basic elements of the equilibrium approach to exchange rate behavior and the evidence that conflicts with the older disequilibrium theory. It argues that the equilibrium approach to exchange rates is in better accord with this evidence. It concludes with a discussion of the implications of the equilibrium approach to exchange rates for economic policies.

Risk and Exchange Rates   Recommended!   Acrobat Required
Obstfeld, M. & K. Rogoff (2000)

Abstract: The model we propose in this paper extends the “new open-economy macroeconomics” framework of Obstfeld and Rogoff (1995, 1996), Corsetti and Pesenti (1998), and others to an explicitly stochastic environment. We analyze a sticky-price monetary model in which risk has an impact not only on asset prices and short-term interest rates, but also on the price-setting decisions of individual producers, and thus on expected output and interna-tional trade flows.

Price Discovery in Multiple-Dealer Markets: The Case of the Interbank Foreign Exchange Market
Williams, K.L. (2000)

FX Trading & Exchange Rate Dynamics
Evans, M.D.D. (2001)

The Application of Artificial Neural Networks to Exchange Rate Forecasting: The Role of Market Microstructure Variables
Gradojevic, N. & Y. Jing (2001)

Implicit Band within the Announced Exchange Rate Band   Acrobat Required
Koren, M. (2001)

Chaos and the Exchange Rate   Acrobat Required
Federici, D. & G. Gandolfo (2001)

High- and Low-Frequency Exchange Rate Volatility Dynamics: Range-Based Estimation of Stochastic Volatility Models
Alizadeh, S., M.W. Brandt & F.X. Diebold (2001)

Easy Money through the Back Door: The Markets vs. the ECB | Alternative   Acrobat Required
Bibow, J. (2001)

Currency Substitution and the Demand for Money: Some Evidence for Canada   Acrobat Required
Bordo, M.D. & E.U. Choudhri (2001)

Technical Analysis in Foreign Exchange Markets: Linear Versus Nonlinear Trading Rules   Acrobat Required
Fernández-Rodríguez, F., S. Sosvilla-Rivero and J. Andrada-Félix (2001)

On the Variation of Hedging Decisions in Daily Currency Risk Management   Acrobat Required
Bos, C.S., R.J. Mahieu & H.K. van Dijk (2001)

Daily Exchange Rate Behaviour and Hedging of Currency Risk   Acrobat Required
Bos, C.S., R.J. Mahieu & H.K. van Dijk (2001)

Learning Dynamics in an Artificial Currency Market   Acrobat Required
Georges, C. (2001)

Abstract: This paper considers the behavior of the exchange rate in a very simple artificial currency market with two currencies and artificial agents who evolve their forecast rules over time via a genetic algorithm. I consider two simple forecast rules, one linear and the other non-linear. Under the first rule, learning tends to be rapid and complete. Under the second, learning can generate persistent exchange rate dynamics.

The Multi-Fractal Model of Asset Returns: Simple Moment and GMM Estimation   Acrobat Required
Lux, T. (2001)

Modelling exchange rates: smooth transitions, neural networks, and linear models   Acrobat Required
Medeiros, M.C., A. Veiga & C.E. Pedreira (2001)

Rational Speculation and Exchange Rates | Published | Comment   ScienceDirect Required
Duarte, M. & A.C. Stockman (2001)

Current Accounts and Exchange Rates: A New Look at the Evidence
Leonard, G. & A.C. Stockman (2001)

Portfolio Balance, Price Impact, and Secret Intervention
Evans, M.D.D. & R.K. Lyons (2001)

Why Has the Euro Been Falling? An Investigation into the Determinants of the Exchange Rate   Recommended!
Sinn, H.W. & F. Westermann (2001)

Abstract: This paper reconsiders the determinants of the exchange rate by studying the historical episode after the fall of the Iron Curtain. Testing a modified portfolio balance model, we attribute the strength of the deutschmark in the early nineties and the puzzling decline of the euro during its virtual existence to changes in the demand for deutschmarks in eastern Europe and to variations in the demand for black money balances in Europe as a whole. We reject the view that the strength of the dollar and the weakness of the euro reflect the prosperity of the US and the weakness of the European economy on both theoretical and empirical grounds.

Heterogeneous Expectations, Currency Options and the Euro/Dollar Exchange Rate   Acrobat Required
Rzepkowski, B. (2001)

Currency orders and exchange-rate dynamics: explaining the success of technical analysis   Acrobat Required
Osler, C.L. (2001)

Tracking the euro
Koen, V., L. Boone, A. de Serres & N. Fuchs (2001)

Exact Non-Parametric Tests for a Random Walk with Unknown Drift under Conditional Heteroscedasticity
Luger, R. (2001)

Modelling Time-Varying Exchange Rate Dependence Using the Conditional Copula | Published   Acrobat Required   Wiley Interscience Required
Patton, A.J. (2001/06)

FX trading and Exchange Rate Dynamics   Acrobat Required
Evans, M. (2001)

To What Extent Does Productivity Drive the Dollar?   Recommended!
Tille, C., N. Stoffels & O. Gorbachev (2001)

Abstract: The continuing strength of the dollar has fueled interest in the relationship between productivity and exchange rates. An analysis of the link between the dollar’s movements and productivity developments in the United States, Japan, and the euro area suggests that productivity can account for much of the change in the external value of the dollar over the past three decades.

Simulated Likelihood Estimation of Diffusions with an Application to Exchange Rate Dynamics in Incomplete Markets
Brandt, M.W. & P. Santa-Clara (2001)

Abstract: We present an econometric method for estimating the parameters of a diffusion model from discretely sampled data. The estimator is transparent, adaptive, and inherits the asymptotic properties of the generally unattainable maximum likelihood estimator. We use this method to estimate a new continuous-time model of the Joint dynamics of interest rates in two countries and the exchange rate between the two currencies. The model allows financial markets to be incomplete and specifies the degree of incompleteness as a stochastic process. Our empirical results offer several new insights into the dynamics of exchange rates.

Structural Error Correction Models: Instrumental Variables Methods and Application to an Exchange Rate Model   Acrobat Required
Kim, J., M. Ogaki & M.S. Yang (2001)

The Adjustment of Prices and the Adjustment of the Exchange Rate
Engel, C. & J.C. Morley (2001)

Why Has the Euro Been So Weak?
Meredith, G.M. (2001)

The Out-of-Sample Success of Term Structure Models as Exchange Rate Predictors: A Step Beyond
Clarida, R., L. Sarno, M. Taylor & G. Valente (2001)

Can Markov switching models predict excess foreign exchange returns?   Acrobat Required!
Dueker, M. & C.J. Neely (2001)

UIP for Short Investments in Long-Term Bonds   Acrobat Required
Alexius, A. (2001)

Daily exchange rate behaviour and hedging of currency risk   Acrobat Required
Bos, C.S., R.J. Mahieu & H.K. Van Dijk (2001)

Neural networks as econometric tool   Acrobat Required
Kaashoek, J.F. & H.K. Van Dijk (2001)

Exchange Rate Forecasting: The Errors We've Really Made | Published   ScienceDirect Required
Faust, J., J.H. Rogers & J. Wright (2001/2003)

Why is it so difficult to beat the random walk forecast of exchange rates?   Acrobat Required!
Kilian, L. & M.P. Taylor (2001)

Heterogeneous Beliefs and Instability   Recommended!   Acrobat Required!
Lasselle, L., S. Svizzero & C. Tisdell (2001)

Abstract: While Rational Expectations have dominated the paradigm of expectations formation, they have been more recently challenged on the empirical ground such as, for instance, in the dynamics of the exchange rate. This challenge has led to the introduction of heterogeneous expectations in economic modeling. More specifically, the forecasts of the market participants have been drawn from competing views. Two behaviours are usually considered: agents are either fundamentalist or chartist. Moreover, the possibility of switching from one behaviour to the other one is also assumed. In a simple cobweb model, we study the dynamics associated with different endogenous switching process based on the path of prices. We provide an example with an asymmetric endogenous switching process built on the dynamics of past prices. This example confirms the widespread belief that fundamentalist market behaviour as compared with that of chartist tends to promote market stability.

Predicting exchange rate volatility genetic programming vs. GARCH and RiskMetrics   Acrobat Required!
Neely, C.J. & P.A. Weller (2001)

The Forward Premium Puzzle Revisited
Meredith, G.M. & Y. Ma (2002)

Commodity Currencies and Empirical Exchange Rate Puzzles
Chen, Y.C. & K. Rogoff (2002)

Productivity and the Euro-Dollar Exchange Rate Puzzle
Alquist, R. & M.D. Chinn (2002)

Exchange Rate Pass-Through, Exchange Rate Volatility, and Exchange Rate Disconnect   Recommended!
Devereux, M.B. & C. Engel (2002)

Abstract: This paper explores the hypothesis that high volatility of real and nominal exchange rates may be due to the fact that local currency pricing eliminates the pass-through from changes in exchange rates to consumer prices. Exchange rates may be highly volatile because in a sense they have little effect on macroeconomic variables. The paper shows the ingredients necessary to construct such an explanation for exchange rate volatility. In addition to the presence of local currency pricing, we need a) incomplete international financial markets, b) a structure of international pricing and product distribution such that wealth effects of exchange rate changes are minimized, and c) stochastic deviations from uncovered interest rate parity. Together, it is shown that these elements can produce exchange rate volatility that is much higher than shocks to economic fundamentals, and `disconnected' from the rest of the economy in the sense that the volatility of all other macroeconomic aggregates are of the same order as that of fundamentals.

Dornbusch's Overshooting Model After Twenty-Five Years   Recommended!
Rogoff, K. (2002)

Abstract: This Mundell Fleming lecture at the International Monetary Fund's annual research conference marks the 25th anniversary of Rudiger Dornbusch's masterpiece, "Expectations and Exchange Rate Dynamics", a seminal contribution to both policy and research in the field of international finance. This essay provides a simple overview of the model as well as some empirics, not only on exchange rates but on measures of the paper's influence. Last, but not least, I offer some personal reflections on how Dornbusch conveyed the ideas in his "overshooting model" to inspire a generation of students.

Non-Linear Forecasting Methods: Some Applications to the Analysis of Financial Series   Acrobat Required!
Bajo-Rubio, O., S. Sosvilla-Rivero & F. Fernández-Rodríguez (2002)

Foreign exchange: macro puzzles, micro tools   Acrobat Required!   SURVEY PAPER
Lyons, R.K. (2002)

Exchange Rate Modelling: Where Do We Stand? | Published   Recommended!   SURVEY PAPERS
CESifo Summer Institute (2002/2005)

Abstract: Proceedings of a CESIfo Summer Institute Workshop held at the Venice International University, San Servolo, 13-14 July, 2002.

Currency Returns, Institutional Investor Flows, and Exchange Rate Fundamentals
Froot, K.A. & T. Ramadorai (2002)

The Cross Sectional Dependence Puzzle   Adobe Acrobat Required!
Cerrato, M. (2002)

The Euro-Dollar exchange rate: Is it fundamental?   Adobe Acrobat Required
Camarero, M., J. Ordóñez & C. Tamarit (2002)

Return-volatility linkages in the international equity and currency markets   Acrobat Required
Francis, B.B., I. Hasan & D.M. Hunter (2002)

Exchange Rates and Adjustment: Perspectives from the New Open Economy Macroeconomics
Obstfeld, M. (2002)

Empirical Exchange Rate Models of the Nineties: Are Any Fit to Survive? | Published   Recommended!   ScienceDirect Required
Cheung, Y.W., M.D. Chinn & A.G. Pascual (2002/2005)

Abstract: Previous assessments of nominal exchange rate determination have focused upon a narrow set of models typically of the 1970's vintage. The canonical papers in this literature are by Meese and Rogoff (1983, 1988), who examined monetary and portfolio balance models. Succeeding works by Mark (1995) and Chinn and Meese (1995) focused on similar models. In this paper we re-assess exchange rate prediction using a wider set of models that have been proposed in the last decade: interest rate parity, productivity based models, and behavioral equilibrium exchange rate' models. The performance of these models is compared against a benchmark model the Dornbusch-Frankel sticky price monetary model. The models are estimated in error correction and first-difference specifications. Rather than estimating the cointegrating vector over the entire sample and treating it as part of the ex ante information set as is commonly done in the literature, we recursively update the cointegrating vector, thereby generating true ex ante forecasts. We examine model performance at various forecast horizons (1 quarter, 4 quarters, 20 quarters) using differing metrics (mean squared error, direction of change), as well as the consistency' test of Cheung and Chinn (1998). No model consistently outperforms a random walk, by a mean squared error measure; however, along a direction-of-change dimension, certain structural models do outperform a random walk with statistical significance. Moreover, one finds that these forecasts are cointegrated with the actual values of exchange rates, although in a large number of cases, the elasticity of the forecasts with respect to the actual values is different from unity. Overall, model/specification/currency combinations that work well in one period will not necessarily work well in another period.

Classroom Guide to the Equilibrium Exchange Rate Model   Acrobat Required
Da Silva, S. (2002)

The Dornbusch Model with Chaos and Foreign Exchange Intervention   Acrobat Required
Da Silva, S. (2002)

Understanding Bilateral Exchange Rate Volatility   Adobe Acrobat Required
Devereux, M.B. and P.R. Lane (2002)

Keynes, Cocoa, and Copper: In Search of Commodity Currencies
Cashin, P.A., L. Cespedes & R. Sahay (2003)

Explaining the Exchange Rate Pass-Through in Different Prices
Choudhri, E.U., H. Faruqee & D. Hakura (2003)

How is Macro News Transmitted to Exchange Rates? | Published   ScienceDirect Required
Evans, M.D.D. & R.K. Lyons (2003/08)

Forward Discount Bias, Nalebuff's Envelope Puzzle, and the Siegel Paradox in Foreign Exchange
Edlin, A.S. (2003)

A Fundamental Theory of Exchange Rates and Direct Currency Trades | Published   ScienceDirect Required   Adobe Acrobat Required
Head, A. & S. Shi (2003)

Testing the Informational Efficiency of OTC Options on Emerging Market Currencies
Chan-Lau, J. & A. Morales (2003)

Can Information Heterogeneity Explain the Exchange Rate Determination Puzzle? | Published   Ingenta Select Required
van Wincoop, E. & P. Bacchetta (2003/06)

Medium-Term Exchange Rate Forecasting: What Can We Expect?
Meredith, G. (2003)

Uncovered interest parity: it works, but not for long | Published   ScienceDirect Required
Chaboud, A.P. & J.H. Wright (2003/2005)

Exchange rate determination in a model of pricing-to-market and nontradeables   Adobe Acrobat Required
Hairault, J.O. & T. Sopraseuth (2003)

Is Grassman's Law Still There? The Empirical Range of Pass-Through in US, German and Japanese Macrodata   Acrobat Required
Mihailov, A. (2003)

Overshooting and the exchange rate disconnect puzzle: a reappraisal | Published   ScienceDirect Required   Adobe Acrobat Required
Hairault, J.O., L. Patureau, Lise & T. Sopraseuth (2003/04)

Chartists and Fundamentalists in the Currency Market and the Volatility of Exchange Rates   Acrobat Required
Bask, M. (2003)

Technical Analysis in Foreign Exchange - The Workhorse Gains Further Ground   Acrobat Required
Gehrig, T. & L. Menkhoff (2003)

More Evidence on the Dollar Risk Premium in the Foreign Exchange Market
Bams, D., K. Walkowiak &l; C. Wolff (2003)

Why is it so difficult to beat the random walk forecast of exchange rates?   ScienceDirect Required
Kilian, L. & M.P. Taylor (2003)

Commodity currencies   ScienceDirect Required
Chen, Y.C. and K. Rogoff (2003)

Nonlinear Exchange Rate Models: A Selective Overview

Words, Deeds, and Outcomes: A Survey on the Growth Effects of Exchange Rate Regimes   SURVEY PAPER
Sarno, L. (2003)

Trade Liberalization and Real Exchange Rate Movement
Li, X. (2003)

Does the Purchasing Power Parity Hold in Emerging Markets? Evidence from Black Market Exchange Rates   Adobe Acrobat Required
Cerrato, M. & N. Sarantis (2003)

Noise Traders and the Volatility of Exchange Rates   Adobe Acrobat Required
Bauer, C. & B. Herz (2003)

Asymmetric Adjustment and Nonlinear Dynamics in Real Exchange Rates
Leon, H.L. & S. Najarian (2003)

Tough Policies, Incredible Policies?
Velasco, A. & A. Neut (2003)

Official Interventions and Occasional Violations of Uncovered Interest Party
Mark, N. & Y-K. Moh (2003)

Exchange rate dynamics, central bank interventions and chaos control methods | Published   Adobe Acrobat Required   ScienceDirect Required
Westerhoff, F. & C. Wieland (2003)

Investment Prices and Exchange Rates: Some Basic Facts | Alternative   Recommended!   Acrobat Required
Burstein, A., J. Neves & S. Rebelo (2003)

Abstract: This paper documents four basic facts about investment goods and investment prices. First, investment has a very signiÞcant nontradable component in the form of construction services. Second, distributions services (wholesaling, retailing and transportation) are much less importance for investment than for consumption. Third, the import content of investment is much larger than that of consumption. Finally, in the aftermath of three large devaluations the rate of exchange rate pass-through is, not surprisingly, highest for imported equipment and lowest for construction services.

Exchange Rate Puzzles and Distorted Beliefs | Published   Acrobat Required   ScienceDirect Required
Gourinchas, P.O. & A. Tornell (2003)

Time-Varying Thresholds: An Application to Purchasing Power Parity
Leon, H.L. & S. Najarian (2003)

Can We Beat the Random Walk Forecasts of Out-of-Sample Exchange Rates? A Structural Approach   Acrobat Required
Karame, F., L. Patureau & T. Sopraseuth (2003)

The Big Mac Standard: A Statistical Illustration   Acrobat Required
Fujiki, H. & Y. Kitamura (2003)

The high-frequency response of exchange rates and interest rates to macroeconomic announcements | Published   ScienceDirect Required
Faust, J., J.H. Rogers, S-Y.B. Wang & J.H. Wright (2003/07)

Imperfect Knowledge and Asset Price Dynamics: Modeling the Forecasting of Rational Agents, Dynamic Prospect Theory and Uncertainty Premia on Foreign Exchange   Adobe Acrobat Required
Frydman, R. & M.D. Goldberg (2003)

Do Fundamentals Matter for the D-Mark/Euro-Dollar? A Regime Switching Approach   Adobe Acrobat Required
Frömmel, M., R. MacDonald & L. Menkhoff (2003)

A Theory of Exchange Rates and the Term Structure of Interest Rates   Adobe Acrobat Required
Lim, H-S. & M. Ogaki (2003)

Net Foreign Assets and Imperfect Pass-through: The Consumption-Real Exchange Rate Anomaly   Adobe Acrobat Required
Tuesta, T. & J. Selaive (2003)

Nonlinearities and Cyclical Behavior: The Role of Chartists and Fundamentalists
Westerhoff, F.H. & S. Reitz (2003)

In search of overshooting and bandwagons in exchange rates   ScienceDirect Required
Pippenger, J. (2003)

Bandwagon effects and run patterns in exchange rates once more   ScienceDirect Required
Rotheli, T.F. (2003)

High-Frequency Principal Components and Evolution of Liquidity in a Limit Order Market   Adobe Acrobat Required
Tyurin, K. (2003)

An Intraday Pricing Model of Foreign Exchange Markets
Romeu, R. (2003)

Exploring Elements of Exchange Rate Theory in a Controlled Enivronment   Acrobat Required
Fisher, E. (2003)

Some Like it Smooth, and Some Like it Rough: Untangling Continuous and Jump Components in Measuring, Modeling, and Forecasting Asset Return Volatility
Andersen, T.G., T. Bollerslev & F.X. Diebold (2003)

Abstract: A rapidly growing literature has documented important improvements in volatility measurement and forecasting performance through the use of realized volatilities constructed from highfrequency returns coupled with relatively simple reduced-form time series modeling procedures. Building on recent theoretical results from Barndorff-Nielsen and Shephard (2003c,d) for related bipower variation measures involving the sum of high-frequency absolute returns, the present paper provides a practical framework for non-parametrically measuring the jump component in realized volatility measurements. Exploiting these ideas for a decade of high-frequency five-minute returns for the DM/$ exchange rate, the S&P500 market index, and the 30-year U.S. Treasury bond yield, we find the jump component of the price process to be distinctly less persistent than the continuous sample path component. Explicitly including the jump measure as an additional explanatory variable in an easy-toimplement reduced form model for realized volatility results in highly significant jump coefficient estimates at the daily, weekly and quarterly forecast horizons. As such, our results hold promise for improved financial asset allocation, risk management, and derivatives pricing, by separate modeling, forecasting and pricing of the continuous and jump components of total return variability.

Exchange rates and fundamentals | Alternative   Adobe Acrobat Required   JSTOR Required   Recommended!
Engel, C. & K.D. West (2004/05)

Abstract: We show analytically that in a rational expectations present-value model, an asset price manifests near–random walk behavior if fundamentals are I(1) and the factor for discounting future fundamentals is near one. We argue that this result helps explain the well-known puzzle that fundamental variables such as relative money supplies, outputs, inflation, and interest rates provide little help in predicting changes in floating exchange rates. As well, we show that the data do exhibit a related link suggested by standard models---that the exchange rate helps predict these fundamentals. The implication is that exchange rates and fundamentals are linked in a way that is broadly consistent with asset-pricing models of the exchange rate.

Are Different-Currency Assets Imperfect Substitutes?   Adobe Acrobat Required
Evans, M.D.D. & R.K. Lyons (2003)

Unit Root Tests in Three-Regime SETAR Models   Acrobat Required
Kapetanios, G. & Y. Shin (2003)

What Do We Know about Recent Exchange Rate Models? In-Sample Fit and Out-of-Sample Performance Evaluated   Adobe Acrobat Required
Cheung, Y-W., M.D. Chinn & A. Garcia-Pascual (2003)

A Scapegoat Model of Exchange Rate Fluctuations | Published   Recommended!   Ingenta Select Required
Bacchetta, P. & E. van Wincoop (2004)

Abstract: While empirical evidence finds only a weak relationship between nominal exchange rates and macroeconomic fundamentals, forex markets participants often attribute exchange rate movements to a macroeconomic variable. The variables that matter, however, appear to change over time and some variable is typically taken as a scapegoat. For example, the current dollar weakness appears to be caused almost exclusively by the large current account de cit, while its previous strength was explained mainly by growth differentials. In this paper, we propose an explanation of this phenomenon in a simple monetary model of the exchange rate with noisy rational expectations, where investors have heterogeneous information on some structural parameter of the economy. In this context, there may be rational confusion about the true source of exchange rate fluctuations, so that if an unobservable variable affects the exchange rate, investors may attribute this movement to some current macroeconomic fundamental. We show that this effect applies only to variables with large imbalances. The model thus implies that the impact of macroeconomic variables on the exchange rate changes over time.

Order Flows, Delta Hedging and Exchange Rate Dynamics
Rzepkowski, B. (2004)

Accounting for Exchange Rate Variability in Present-Value Models When the Discount Factor is Near One | Published   Recommended!   Ingenta Select Required
Engel, C. & K.D. West (2004)

Abstract: Nominal exchange rates in low-inflation advanced countries are nearly random walks. Engel and West (2003a) offer an explanation for this in the context of models in which the exchange rate is determined as the discounted sum of current and expected future fundamentals. Engel and West show that if the fundamentals are I(1), then as the discount factor approaches one, the exchange rate becomes indistinguishable from a random walk. An alternative explanation for the random-walk behavior of exchange rates is that there are some unobserved variables that drive exchange rates that follow near random walks. This paper takes the approach that both explanations are possible. We are able to measure how much of exchange-rate variation could be accounted for by the Engel-West explanation, despite the fact that we do not observe the information set of financial markets. We find that the observable fundamentals (money, income, prices, interest rates) may account for about 40 percent of the variance of changes in exchange rates under the assumption of discount factors near unity.

Who Bears the Cost of a Change in the Exchange Rate? The Case of Imported Beer | Published   ScienceDirect Required
Hellerstein, R. (2004/08)

A New Micro Model of Exchange Rate Dynamics
Evans, M.D.D. & R.K. Lyons (2004)

Exchange rates and interest rates: can term structure models explain currency movements?   ScienceDirect Required
Inci, A.C. & B. Lu (2004)

Can Fluctuations in the Consumption-Wealth Ratio Help to Predict Exchange Rates?   Adobe Acrobat Required
Selaive, J. & V. Tuesta (2004)

Exchange Rate Dynamics: Where is the Saddle Path?   Adobe Acrobat Required
Cheung, Y-W., J. Gardeazabal & J. Vazquez (2004)

The Forward Premium Puzzle in a Model of Imperfect Information: Theory and Evidence   Acrobat Required
Albuquerque, R. (2004)

Measuring Tail Thickness under GARCH and an Application to Extremal Exchange Rate Changes   Acrobat Required
Wagner, N. & T. Marsh (2004)

International Capital Markets and Foreign Exchange Risk   Acrobat Required
Brennan, M. & Y. Xia (2004)

Identification and estimation of exchange rate models with unobservable fundamentals | Published   Wiley Interscience Required   Acrobat Required
Chambers, M.J. & J.R. McCrorie (2004/06)

Does the World Real Interest Rate Affect the Real Exchange Rate? The South East Asian Experience   Acrobat Required
Gente, K. & M. Leon-Ledesma (2004)

Exchange Rate Puzzles: A Tale of Switching Attractors | Published   Acrobat Required   ScienceDirect Required
De Grauwe, P. & M. Grimaldi (2004/05)

Productivity, Tradability, and the Long-Run Price Puzzle
Bergin, P., R. Glick & A.M. Taylor (2004)

From Heterogeneous expectations to exchange rate dynamics   Acrobat Required
Neuberg, L., P. Protin & C. Louargant (2004)

Testing the monetary model of exchange rate determination: a closer look at panels   ScienceDirect Required
Rapach, D.E. & M.E. Wohar (2004)

Volatility Comovement: A Multifrquency Approach
Calvet, L.E., A.J. Fisher & S.B. Thompson (2004)

Fractional cointegration and real exchange rates   ScienceDirect Required
Caporale, G.M. & L.A. Gil-Alana (2004)

Markov Switching Regimes In A Monetary Exchange Rate Model | Published   Acrobat Required   ScienceDirect Required
Froemmel, M., R. Macdonald & L. Menkhoff (2004/2005)

Exchange Rate Behavior and Exchange Rate Puzzles: Why the XVIII Century Might Help   Acrobat Required
Sanchez, R.T., J.G. Biscarri & F.P. de Gracia (2004)

Currency risk in emerging equity markets   ScienceDirect Required
Phylaktis, K. & F. Ravazzolo (2004)

Modelling Exchange Rate Volatility in the Run-up to EMU using a Markov Switching GARCH Model   Adobe Acrobat Required
Frommel, M. (2004)

Monetary Policy and Long-Horizon Uncovered Interest Parity
Chinn, M.D. & G. Meredith (2004)

Exchange Rates and Markov Switching Dynamics   Acrobat Required
Cheung, Y-W. & U.G. Erlandsson (2004)

Trade Openness And Real Exchange Rate Volatility: Panel Data Evidence   Acrobat Required
Calderon, C. (2004)

A Guided Tour of the Market Microstructure Approach to Exchange Rate Determination | Published   Wiley Interscience Required   SURVEY PAPER
Vitale, P. (2004/07)

Should the Exchange Rate be in the Monetary Policy Objective Function?   Acrobat Required
Kirsonova, T., C. Leith & S. Wren-Lewis (2004)

The Rise of Fund Managers in Foreign Exchange
Gehrig, T. & L. Menkhoff (2004)

The Fit of Dynamic Equilibrium Models of Exchange Rate   Acrobat Required
Martín, J.A.J. & R.F. de Frutos (2004)

An Empirical Study of Liquidity and Information Effects of Order Flow on Exchange Rates
Breedon, F. & P. Vitale (2004)

Risk management for an internationally diversified portfolio   Acrobat Required
Menoncin, F. (2004)

Real-Time Price Discovery in Stock, Bond and Foreign Exchange Markets | Published   ScienceDirect Required   Acrobat Required
Andersen, T.G., T. Bollerslev, F.X. Diebold & C. Vega (2004/07)

Limited participation and exchange rate dynamics : does theory meet the data? | Published   Acrobat Required   ScienceDirect Required
Karame, F., L. Patureau & T. Sopraseuth (2004/08)

Do Currency Markets Absorb News Quickly? | Published   ScienceDirect Required
Evans, M.D.D. & R.K. Lyons (2005)

Meese-Rogoff Redux: Micro-Based Exchange Rate Forecasting | Alternative
Evans, M.D.D. & R.K. Lyons (2005)

Testing Uncovered Interest Parity at Short and Long Horizons during the Post-Bretton Woods Era
Chinn, M.D. & G. Meredith (2005)

Testing Long-Horizon Predictive Ability with High Persistence, and the Meese-Rogoff Puzzle   Wiley Interscience Required
Rossi, B. (2005)

Do Financial Market Variables Show (Symmetric) Indicator Properties Relative to Exchange Rate Returns?
Castren, O. (2005)

Dealer behavior and trading systems in foreign exchange markets   ScienceDirect Required
Bjønnes, G.H. & D. Rime (2005)

The U.S. Current Account and the Dollar
Blanchard, O., F. Giavazzi & F. Sa (2005)

Liquidity provision in the overnight foreign exchange market   ScienceDirect Required
Bjønnes, G.H., D. Rime & H.O.Aa. Solheim (2005)

Exchange rates and fundamentals: new evidence from real-time data   ScienceDirect Required
Ehrmann, M. & M. Fratzscher (2005)

Slow Passthrough Around the World: A New Import for Developing Countries?
Frankel, J.A., D.C. Parsley & S-J. Wei (2005)

Fundamental and Non-Fundamental Equilibria in the Foreign Exchange Market: A Behavioural Finance Framework
de Grauwe, P., R. Dieci & M. Grimaldi (2005)

Heterogeneity of agents, transactions costs and the exchange rate   Recommended!   ScienceDirect Required
De Grauwe, P. & M. Grimaldi (2005)

Abstract: We develop a model of the exchange rate that has two features. First, there are non-linearities that arise from the existence of transaction costs in goods markets. Second, the model assumes heterogeneous agents who use simple forecasting rules, the ‘fitness’ of which is then controlled ex post by checking their profitability, and by switching to the more profitable rules. This model is capable of reproducing the empirical puzzles observed in exchange markets (disconnect puzzle, excess volatility, fat tails, volatility clustering). We analyse some policy implications of this type of modelling of the exchange rate.

Market microstructure: A survey of microfoundations, empirical results, and policy implications   ScienceDirect Required   SURVEY PAPER
Biais, B., L. Glosten & C. Spatt (2005)

Do Demand Curves for Currencies Slope Down? Evidence from the MSCI Global Index Change
Hau, H., M. Massa & J. Peress (2005)

Exchange rates and fundamentals: evidence on the economic value of predictability   ScienceDirect Required
Abhyankar, A., L. Sarno & G. Valente (2005)

The impact of macroeconomic surprises on spot and forward foreign exchange markets   ScienceDirect Required
Simpson, M.W., S. Ramchander & M. Chaudhry (2005)

The Exchange Rate and its Fundamentals in a Complex World   Wiley Interscience Required
De Grauwe, P. & M. Grimaldi (2005)

The euro at five: Short-run pain, long-run gain?   ScienceDirect Required
Rogoff, K. (2005)

The euro and the dollar 6 years after creation   ScienceDirect Required
Mussa, M. (2005)

The euro–dollar exchange rate defies prediction   ScienceDirect Required
Salvatore, S. (2005)

Regime-Switching Behavior of the Term Structure of Forward Markets
Tchernykh, E. & W.H. Branson (2005)

Smooth-transition error-correction in exchange rates   ScienceDirect Required
McMillan D.G. (2005)

Feedback trading and autocorrelation interactions in the foreign exchange market: Further evidence   ScienceDirect Required
Laopodis, N.T. (2005)

Noise trading and delayed exchange rate overshooting   ScienceDirect Required
Pierdzioch, C. (2005)

Rational Inattention: A Solution to the Forward Discount Puzzle | Published
Bacchetta, P. & E. van Wincoop (2005/10)

Modeling Exchange-Rate Passthrough After Large Devaluations | Published   ScienceDirect Required
Burstein, A., M. & S. Rebelo (2005/07)

The Exchange Rate Forecasting Puzzle   Adobe Acrobat Required
Vitek, F. (2005)

Revisiting the Martingale hypothesis for exchange rates   Acrobat Required
Lee, Y-S., T-H. Kim & P. Newbold (2005)

Understanding Order Flow
Evans, M.D.D. & R.K. Lyons (2005)

Stock prices and exchange rate dynamics   ScienceDirect Required
Phylaktis, K. and Ravazzolo, F. (2005)

What Defines 'News' in Foreign Exchange Markets?
Dominguez, K. & F. Panthaki (2005)

Explaining exchange rate dynamics - the uncovered equity return parity condition   Acrobat Required
Cappiello, L., E. Krylova & R.A. De Santis (2005)

Monetary policy and the illusionary exchange rate puzzle   Acrobat Required
Bjørnland, H.C. (2005)

Foreign Exchange Market Microstructure   Acrobat Required
Evans, M.D.D. (2005)

Arbitrage in the foreign exchange market: Turning on the microscope | Published   Acrobat Required   ScienceDirect Required
Akram, Q.F., D. Rime & L. Sarno (2005/08)

Investing in Foreign Currency is like Betting on your Intertemporal Marginal Rate of Substitution   Acrobat Required
Lustig, H. & A. Verdelhan (2005)

New Evidence on the Forward Unbiasedness Hypothesis in the Foreign Exchange Market   Acrobat Required
Nikolaou, K. & L. Sarno (2005)

Non-Linearities in the Relation between the Exchange Rate and its Fundamentals   Adobe Acrobat Required
Altavilla, C. & P. De Grauwe (2005)

The Information in Long-Maturity Forward Rates: Implications for Exchange Rates and the Forward Premium Anomaly
Boudoukh, J., M. Richardson & R. Whitelaw (2005)

Exchange Rate Pass-through into Import Prices   Ingenta Select Required
Campa, J.M. & L.S. Goldberg (2005)

A Note on the Foreign Exchange Market Efficiency Hypothesis: Does Small Sample Bias affect Inference?   Acrobat Required
Al-Zoubi, H.A. & E. Daal (2005)

A semiparametric GARCH model for foreign exchange volatility   ScienceDirect Required
Yang, L. (2006)

Time-varying risk, interest rates, and exchange rates in general equilibrium | Published   Acrobat Required   Wiley Interscience Required
Alvarez, F., A. Atkeson & P.J. Kehoe (2006/09)

Uncovered Interest Parity   SURVEY PAPER
Isard, P. (2006)

A Market Microstructure Analysis of Foreign Exchange Intervention | Alternative   Acrobat Required
Vitale, P. (2006)

The Forward Exchange Rate Bias Puzzle: Evidence from New Cointegration Tests   Acrobat Required
Aggarwal, R., B.M. Lucey & S.K. Mohanty (2006)

Uncovering Yield Parity: A new insight into the UIP puzzle through the stationarity of long maturity forward rates   Acrobat Required
Darvas, Z., G. Rappai & Z. Schepp (2006)

Another look at long-horizon uncovered interest parity   Acrobat Required
Montañés, A. & M. Sanso-Navarro (2006)

The microstructure approach to exchange rates: a survey from a central bank’s viewpoint   SURVEY PAPER
Gereben, A., G. Gyomai & N. Kiss M. (2006)

Towards Decoding Currency Volatilities   Acrobat Required
Juttner, D.J. & W. Leung (2006)

Fundamental volatility is regime specific   Acrobat Required
Arnold, I.J.M., R. MacDonald & C.G. de Vries (2006)

Learning to Forecast the Exchange Rate: Two Competing Approaches | Published   ScienceDirect Required   Acrobat Required
De Grauwe, P. & A. Markiewicz (2006/13)

Profits and Speculation in Intra-Day Foreign Exchange Trading | Published   Acrobat Required   ScienceDirect Required
Mende, A. & L. Menkhoff (2006)

A Habit-Based Explanation of the Exchange Rate Risk Premium   Acrobat Required
Verdelhan, A. (2006)

Exchange Rates and Order Flow in the Long Run   Acrobat Required
Boyer, M.M. & S. van Norden (2006)

Nonlinearity in Deviations from Uncovered Interest Parity: An Explanation of the Forward Bias Puzzle
Sarno, L., G. Valente & H.L. Leon (2006)

Structural Error-Correction Model of Best Prices and Depths in the Foreign Exchange Limit Order Market   Acrobat Required
Lo, I. & S.G. Sapp (2006)

Regional heterogeneity in the relationship between fiscal imbalances and foreign exchange market pressure   ScienceDirect Required
Bird, G. & A. Mandilaras (2006)

On the short-term predictability of exchange rates: A BVAR time-varying parameters approach   ScienceDirect Required
Sarantis, N. (2006)

Why use Markov-switching models in exchange rate prediction?   ScienceDirect Required
Lee, H-Y. & S-L. Chen (2006)

Can Affine Term Structure Models Help Us Predict Exchange Rates?   Acrobat Required
Diez, A. (2006)

Forecasting and Combining Competing Models of Exchange Rate Determination   Acrobat Required
Altavilla, P. & P. De Grauwe (2006)

What drives volatility persistence in the foreign exchange market? | Published   ScienceDirect Required
Berger, D., A. Chaboud, E. Hjalmarsson & E. Howorka (2006/09)

Transmission of volatility and trading activity in the global interdealer foreign exchange market: evidence from electronic broking services (EBS) data
Cai, F., E. Howorka & J. Wongswan (2006)

Clustering and psychological barriers in exchange rates   ScienceDirect Required
Mitchell, J. & H.Y. Izan (2006)

The Returns to Currency Speculation
Burnside, B., M. Eichenbaum, I. Kleshchelski & S. Rebelo (2006)

The Forward Market in Emerging Currencies: Less Biased Than in Major Currencies | Published   ScienceDirect Required
Frankel, J. & J. Poonawala (2006/10)

Volatility impulse responses for multivariate GARCH models: An exchange rate illustration   ScienceDirect Required
Hafner, C.M. & H. Herwartz (2006)

Conventional and Unconventional Approaches to Exchange Rate Modeling and Assessment
Chinn, M.D. & R. Alquist (2006)

The interaction between technical currency trading and exchange rate fluctuations   ScienceDirect Required
Schulmeister, S. (2006)

Pass Through of Exchange Rates to Consumption Prices: What has Changed and Why?
Campa, J.M. & L.S. Goldberg (2006)

Accounting for the source of exchange rate movements: new evidence   Adobe Acrobat Required
Farrant, K. & G. Peersman (2006)

What Drives Heterogeneity in Foreign Exchange Rate Expectations: Deep Insights from a New Survey   Adobe Acrobat Required
Dreger, C. & G. Stadtmann (2006)

Affine term structure models for the foreign exchange risk premium   Adobe Acrobat Required
Benati, L. (2006)

Exchange rate volatility without the contrivance of fundamentals and the failure of PPP   Acrobat Required
Bask, M. (2006)

Announcement effects on exchange rate movements: continuity as a selection criterion among the REE   Acrobat Required
Bask, M. (2006)

Testing the uncovered interest parity using traded volatility, a time-varying risk premium and heterogeneous expectations   ScienceDirect Required
Sarantis, N. (2006)

Testing for multiple regimes in the tail behavior of emerging currency returns   ScienceDirect Required
Candelon, B. & S. Straetmans (2006)

Price Impacts of Deals and Predictability of the Exchange Rate Movements
Ito, T. & Y. Hashimoto (2006)

A Behavioral Finance Model of the Exchange Rate with Many Forecasting Rules   Acrobat Required
De Grauwe, P. & P.R. Kaltwasser (2006)

The Obstinate Passion of Foreign Exchange Professionals: Technical Analysis   Acrobat Required
Menkhoff, L. & M.P. Taylor (2006)

On the trade impact of nominal exchange rate volatility   ScienceDirect Required
Tenreyro, S. (2006)

Production, trade, prices, exchange rates and equilibration in large experimental economies   ScienceDirect Required
Noussair, C., C. Plott & R. Riezman (2006)   ScienceDirect Required

On the inadequacy of newswire reports for empirical research on foreign exchange interventions   ScienceDirect Required
Fischer, A.M. (2006)

Exchange Rate Markets and Conservative Inferential Expectations | Published   Acrobat Required   ScienceDirect Required
Menzies, G. & D. Zizzo (2006/12)

Black Market and Official Exchange Rates: Long-Run Equilibrium and Short-Run Dynamics | Published   Acrobat Required   Wiley Interscience Required
Caporale, G.M. & M. Cerrato (2006/07)

Exchange rate pass-through to domestic prices: Does the inflationary environment matter?   ScienceDirect Required
Choudhri, E.U. & D.S. Hakura (2006)

Sentiment in foreign exchange markets: Hidden fundamentals by the back door or just noise?   Acrobat Required
Rebitzky, R.R. (2006)

Exchange Rate Changes and Inflation in Post-Crisis Asian Economies: VAR Analysis of the Exchange Rate Pass-Through
Ito, T. & K. Sato (2006)

Trade integration, competition, and the decline in exchange-rate pass-through | Published   ScienceDirect Required
Gust, C., S. Leduc & R.J. Vigfusson (2006/10)

Exchange Rate Pass-Through: Evidence Based on Vector Autoregression with Sign Restrictions   Acrobat Required
An, L. (2006)

Testing the Equilibrium Exchange Rate Model - Updated   Acrobat Required
Guilherme, M. & D.S. Sergio (2006)

Can Markov switching models predict excess foreign exchange returns?   ScienceDirect Required
Dueker, M. & C.J. Neely (2007)

The Overvaluation of Renminbi Undervaluation | Published   ScienceDirect Required
Cheung, Y-W., M.D. Chinn & E. Fujii (2007)

Random Walk Expectations and the Forward Discount Puzzle   Acrobat Required
Bacchetta, P. & E. van Wincoop (2007)

Evaluating An Estimated New Keynesian Small Open Economy Model | Published   ScienceDirect Required
Adolfson, M., S. Laséen, J. Lindé & M. Villani (2007/08)

Macroeconomic imbalances and exchange rate regime shifts   Acrobat Required
Post, E. (2007)

Testing PPP in the non-linear STAR framework   ScienceDirect Required
Bahmani-Oskooee, M., A.M. Kutan & S. Zhou (2007)

Industry Restructuring, Mark-ups, and Exchange Rate Pass-Through   Acrobat Required
Lapham, B. & D. Leung (2007)

A Yield Curve Perspective on Uncovered Interest Parity   Acrobat Required
Krippner, L. (2007)

Modeling foreign exchange rates with jumps   Acrobat Required
Maheu, J.M. & T.H. McCurdy (2007)

The Returns to Currency Speculation in Emerging Markets
Burnside, B., M. Eichenbaum & S. Rebelo (2007)

Home bias, exchange rate disconnect, and optimal exchange rate policy | Published   Acrobat Required   ScienceDirect Required
Wang , J. (2007/10)

Incomplete Cost Pass-Through Under Deep Habits
Ravn, M., S. Schmitt-Grohe & M. Uribe (2007)

Do Exchange Rates Move in Line With Uncovered Interest Parity?
Huisman, R., R.J. Mahieu & A. Mulder (2007)

The Forward Premium Puzzle: new evidence from futures contracts   Acrobat Required
Bernoth, K., J. von Hagen & C. de Vries (2007)

The exchange rate in a behavioral finance framework   ScienceDirect Required
Osler, C. (2007)

Forecasting exchange rate better with artificial neural network   ScienceDirect Required
Panda, C. & V. Narasimhan (2007)

Resolving the unbiasedness and forward premium puzzles   Recommended!   Acrobat Required
Thornton, D.L. (2007)

Abstract: There are two unresolved puzzles in the empirical foreign exchange literature. The first is the finding that tests of forward rate unbiasedness using the forward rate and forward premium equations yield markedly different conclusions. A companion puzzle?the forward premium puzzle?is the fact that the forward premium incorrectly predicts the direction of the subsequent change in the spot rate, which implies a massive rejection of uncovered interest parity. This paper resolves both puzzles.

Customer Trading in the Foreign Exchange Market: Empirical Evidence from an Internet Trading Platform   Acrobat Required
Nolte, I. & S. Lechner (2007)

Modeling Optimism and Pessimism in the Foreign Exchange Market | Published   Acrobat Required   ScienceDirect Required
De Grauwe, P. & P.R. Kaltwasser (2007/12)

Exchange rate forecasting, order flow and macroeconomic information | Published   Acrobat Required   ScienceDirect Required
Rime, D., L. Sarno & E. Sojli (2007/09)

The Cross-Section of Foreign Currency Risk Premia and Consumption Growth Risk: A Comment
Burnside, C. (2007)

A New Approach to Forecasting Exchange Rates | Published   Acrobat Required   ScienceDirect Required
Clements, K.W. & Y. Lan (2007/10)

Irving Fisher, Expectational Errors, and the UIP Puzzle
Campbell, R., K. Koedijk, J.R. Lothian & R.J. Mahieu (2007)

Exchange Rate Fundamentals and Order Flow
Evans, M.D.D. & R.K. Lyons (2007)

A Resolution of the Forward Discount Puzzle   Acrobat Required
Olmo, J. & K. Pilbeam (2007)

The Importance of Interest Rate Volatility in Empirical Tests of Uncovered Interest Parity   Acrobat Required
Hadzi-Vaskov, M. & C. Kool (2007)

End-user order flow and exchange rate dynamics   Acrobat Required
Reitz, S., M. Schmidt & M.P. Taylor (2007)

A Saddlepoint Approximation to the Distribution of the Half-Life Estimator in an Autoregressive Model: New Insights Into the PPP Puzzle   Acrobat Required
Chen, Q. & D.E. Giles (2007)

Pricing to Firm: an Analysis of Firm- and Product-level Import Prices   Wiley Interscience Required
Halpern, L. & M. Koren (2007)

Random Walk Expectations and the Forward Discount Puzzle
Bacchetta, P. & E. van Wincoop (2007)

Macroeconomic news and exchange rates   ScienceDirect Required
Pearce, D.K. & M.N. Solakoglu (2007)

Measuring Long-Run Exchange Rate Pass-Through
de Bandt, O., A. Banerjee & R. Kozluk (2007)

Economic Integration and the Foreign Exchange   Acrobat Required
Weber, E. (2007)

On the returns generating process and the profitability of trading rules in emerging capital markets   ScienceDirect Required
Hatgioannides, J. & S. Mesomeris (2007)

Uncovered interest rate parity and the term structure   ScienceDirect Required
Bekaert, G., M. Wei & Y. Xing (2007)

Understanding the Forward Premium Puzzle: A Microstructure Approach
Burnside, C., M.S. Eichenbaum & S. Rebelo (2007)

Safe Haven Currencies   Acrobat Required!
Soderlind, P. & A. Ranaldo (2007)

The Economics of Uncovered Interest Parity Condition for Emerging Markets: A Survey   Acrobat Required
Alper, C.E., O.P. Ardic & S. Fendoglu (2007)

Fourier Transform Method with an Asymptotic Expansion Approach: an Application to Currency Options   Acrobat Required
Takahashi, A. & K. Takehara (2007)

Exchange Rate Models Are Not as Bad as You Think
Engel, C., N.C. Mark & K.D. West (2007)

Uncovered interest parity at distant horizons: evidence on emerging economies & nonlinearities   Acrobat Required
Mehl, A. & L. Cappiello (2007)

Currency and credit markets   ScienceDirect Required
Bilsona, J.F.O. & D. Cernauskas (2007)

Specifying the Forecast Generating Process for Exchange Rate Survey Forecasts   Acrobat Required
Cohen, R.H. & C. Bonham (2007)

Is Sterilized Intervention Effective? New International Evidence   Acrobat Required
Siklos, P.L. & D.N. Weymark (2007)

International Investment Positions and Exchange Rate Dynamics: A Dynamic Panel Analysis   Acrobat Required
Binder, M. & C. Offermanns (2007)

Aggregate Trading Behavior of Technical Models and the Yen/Dollar Exchange Rate   Acrobat Required
Schulmeister, S. (2007)

What can the data tell us about carry trades in Japanese yen?
Gagnon, J.E. & A.P. Chaboud (2007)

Conditional Volatility and Distribution of Exchange Rates: GARCH and FIGARCH Models with NIG Distribution
Kiliç, R. (2007)

Which Are the World's Wobblier Currencies? Reference Exchange Rates and Their Variation
Bowden, R.J. & J.Z. Zhu (2007)

Financial Exchange Rates and International Currency Exposures | Published
Lane, P. & J.C. Shambaugh (2007/10)

The uncovered return parity condition   Acrobat Required
Cappiello, L. & R.A. De Santis (2007)

Exchange rate pass-through to export prices: assessing some cross-country evidence | Published   Wiley Interscience Required
Vigfusson, R.J., N. Sheets & J. Gagnon (2007/09)

Testing Uncovered Interest Parity: A Continuous-Time Approach | Published   Acrobat Required   Wiley Interscience Required
Diez de los Rios, A. & E. Sentana (2007/11)

Solving Exchange Rate Puzzles with neither Sticky Prices nor Trade Costs | Published   Acrobat Required   ScienceDirect Required
Roche, M.J. & M.J. Moore (2007/10)

Professional forecasts of interest rates and exchange rates: Evidence from the Wall Street Journal’s panel of economists   ScienceDirect Required
Mitchell, K. & D.K. Pearce (2007)

Optimal Informed Trading in the Foreign Exchange Market
Vitale, P. (2007)

Where Does Price Discovery Occur in FX Markets?   Acrobat Required
D'Souza, C. (2007)

Using a New Open Economy Macroeconomics model to make real nominal exchange rate forecasts   Acrobat Required
Sellin, P. (2007)

The timing and magnitude of exchange rate overshooting   Acrobat Required
Hoffmann, M., J. Sondergaard & N.J. Westelius (2007)

A monetary model of the exchange rate with informational frictions   Acrobat Required
Martinez-Garcia, E. (2007)

Exchange rate volatility, macro announcements and the choice of intraday seasonality filtering method   Acrobat Required
Laakkonen, H. (2007)

Exchange Rate Volatility and Reserves Transparency
Cady, J. & J. Gonzalez-Garcia (2007)

Model-Free Evaluation of Directional Predictability in Foreign Exchange Markets   Acrobat Required
Chung, J. & Y. Hong (2007)

Investor Overconfidence and the Forward Discount Puzzle
Han, B., D. Hirshleifer & T. Wang (2008)

An Economic Evaluation of Empirical Exchange Rate Models
Della Corte, P., L. Sarno & I. Tsiakas (2008)

Note on The Cross-Section of Foreign Currency Risk Premia and Consumption Growth Risk
Lustig, H. & A. Verdelhan (2008)

Rare Disasters and Exchange Rates   Recommended!
Farhi, E. & X. Gabaix (2008)

Abstract: We propose a new model of exchange rates, which yields a theory of the forward premium puzzle. Our explanation combines two ingredients: the possibility of rare economic disasters, and an asset view of the exchange rate. Our model is frictionless, has complete markets, and works for an arbitrary number of countries. In the model, rare worldwide disasters can occur and affect each country's productivity. Each country's exposure to disaster risk varies over time according to a mean-reverting process. Risky countries command high risk premia: they feature a depreciated exchange rate and a high interest rate. As their risk premium mean reverts, their exchange rate appreciates. Therefore, currencies of high interest rate countries appreciate on average. To make the notion of disaster risk more implementable, we show how options prices might in principle uncover latent disaster risk, and help forecast exchange rate movements. We then extend the framework to incorporate two factors: a disaster risk factor, and a business cycle factor. We calibrate the model and obtain quantitatively realistic values for the volatility of the exchange rate, the forward premium puzzle regression coefficients, and near-random walk exchange rate dynamics. Finally, we solve a model of stock markets across countries, which yields a series of predictions about the joint behavior of exchange rates, bonds, options and stocks across countries. The evidence from the options market appears to be supportive of the model.

Dispersion of Beliefs in the Foreign Exchange Market | Published   Wiley Interscience Required
Jongen, R., W.F.C. Verschoor, C.C. Wolff & R.C.J. Zwinkels (2008/12)

Microstructure Noise, Realized Variance, and Optimal Sampling   Wiley Interscience Required
Bandi, F.M. & J.R. Russell (2008)

Does FOMC News Increase Global FX Trading? | Published   ScienceDirect Required
Fischer, A.M. & A. Ranaldo (2008/11)

The Monetary Model Strikes Back: Evidence from the World | Published   ScienceDirect Required
Cerra, V. & S.C. Saxena (2008/10)

Expectations and chaotic dynamics: Empirical evidence on exchange rates   ScienceDirect Required
Resende, M. & R.M. Zeidan (2008)

Can Exchange Rates Forecast Commodity Prices?
Chen, Y-C., K. Rogoff & B. Rossi (2008)

Circular Aspects of Exchange Rates and Market Structure   Acrobat Required
Aksoy, Y. & H. Lustig (2008)

A new look at pass-through   ScienceDirect Required
Shambaugh, J. (2008)

The long swings in the spot exchange rates and the complex unit roots hypothesis   ScienceDirect Required
Al-Zoubi, H.A. (2008)

Unraveling the complex interrelationships between exchange rates and fundamentals   ScienceDirect Required
Murphy, A. & Y. Zhu (2008)

Order flow and exchange rate dynamics in electronic brokerage system data   ScienceDirect Required
Berger, D.W., A.P. Chaboud, S.V. Chernenko, E. Howorka & J.H. Wright (2008)

Forecasting foreign exchange rates using idiosyncratic volatility   ScienceDirect Required
Guo, H. & R. Savickas (2008)

Market structure and dealers’ quoting behavior in the foreign exchange market   ScienceDirect Required
Ding, L. (2008)

Do Peso Problems Explain the Returns to the Carry Trade?
Burnside, A.C., M.S. Eichenbaum, I. Kleshchelski & S. Rebelo (2008)

The Long or Short of it: Determinants of Foreign Currency Exposure in External Balance Sheets
Lane, P.R. & J.C. Shambaugh (2008)

Short-run Exchange-Rate Dynamics: Theory and Evidence   Acrobat Required
Carlson, J.A., C.M. Dahl & C.L. Osler (2008)

Real Exchange Rate Dynamics under Staggered Loan Contracts   Acrobat Required
Fujiwara, I. & Y. Teranishi (2008)

Market Microstructure Approach to the Exchange Rate Determination Puzzle   Acrobat Required   SURVEY PAPER
Mokoena, T., R. Gupta & R. Van Eyden (2008)

The Continuing Puzzle of Short Horizon Exchange Rate Forecasting
Rogoff, K.S. & V. Stavrakeva (2008)

Common Risk Factors in Currency Markets
Lustig, H., N. Roussanov & A. Verdelhan (2008)

Random Walk or A Run: Market Microstructure Analysis of the Foreign Exchange Rate Movements based on Conditional Probability
Hashimoto, Y., T. Ito, T. Ohnishi, M. Takayasu, H. Takayasu & T. Watanabe (2008)

Pitfalls in Measuring Exchange Rate Misalignment: The Yuan and Other Currencies
Cheung, Y-W., M.D. Chinn & E. Fujii (2008)

Private Information and a Macro Model of Exchange Rates: Evidence from a Novel Data Set
Chinn, M.D. & M.J. Moore (2008)

Exchange Rate Puzzles: A Review of the Recent Theoretical and Empirical Developments   Acrobat Required   SURVEY PAPER
Mokoena, T., R. Gupta & R. van Eyden (2008)

Exchange rates and fundamentals: a generalization   Acrobat Required
Nason, J.M. & J.H. Rogers (2008)

Exchange rate determination under interest rate rules   ScienceDirect Required
Benigno, G. & P. Benigno (2008)

Order flows, news, and exchange rate volatility   ScienceDirect Required
Frömmel, M., A. Mende & L. Menkhoff (2008)

Emerging market hedge funds and the yen carry trade   ScienceDirect Required
Peltomäki, J. (2008)

New Keynesian Exchange Rate Pass-Through
Choi, W.G. & D. Cook (2008)

Nonlinearity as an Explanation of the Forward Exchange Rate Anomaly   Acrobat Required
Bond, D., N. Hession, M.J. Harrison & E.J. O’Brien (2008)

Risk-Premia, Carry-Trade Dynamics, and Speculative Efficiency of Currency Markets   Acrobat Required
Wagner, C. (2008)

Panel Cointegration and the Monetary Exchange Rate Model
Basher, S.A. & J. Westerlund (2008)

Freely Floating Exchange Rates Do Not Systematically Overshoot   Acrobat Required
Pippenger, J. (2008)

A structural time series test of the monetary model of exchange rates under four big inflations   ScienceDirect Required
Tawadros, G.B. (2008)

Bayesian Model Averaging and exchange rate forecasts   ScienceDirect Required
Wright, J.H. (2008)

News and Expectations in Financial Markets: An Experimental Study   Acrobat Required
Menzies, G. & D. Zizzo (2008)

Informational linkages across trading regions: Evidence from foreign exchange markets   ScienceDirect Required
Cai, F., E. Howorka & J. Wongswan (2008)

Is the forward bias economically small? Evidence from European rates   ScienceDirect Required
Sercu, M.V. & X. Wu (2008)

Local information in foreign exchange markets   ScienceDirect Required
Menkhoff, L. & M. Schmeling (2008)

McCallum Rules, Exchange Rates, and the Term Structure of Interest Rates   Acrobat Required
de los Rios, A.D. (2008)

Foreign exchange market bid-ask spread and market power in an underdeveloped economy
Khemraj, T. & S. Pasha (2008)

Price discovery from cross-currency and FX swaps: a structural analysis
Baba, N. & S.Y. Amatatsu (2008)

Leveraged Carry Trade Portfolios   Acrobat Required
Darvas, Z. (2008)

Emerging Market Currency Excess Returns | Published
Gilmore, S. & F. Hayashi (2008/11)

Predictability and 'Good Deals' in Currency Markets
Levich, R.M. & V. Poti (2008)

Forecasting foreign exchange volatility: Why is implied volatility biased and inefficient? And does it matter?   ScienceDirect Required
Neely, C.J. (2008)

The Taylor rule and forecast intervals for exchange rates   Acrobat Required
Wang, J. & J.J. Wu (2008)

Nonlinear Exchange Rate Predictability | Published   Acrobat Required   ScienceDirect Required
Suarez, C.F.L. & J.A.R. Lopez (2008/11)

Interpreting deviations from covered interest parity during the financial market turmoil of 2007-08
Baba, N. & S.F. Packer (2008)

Asymmetric information in the interbank foreign exchange market
Bjønnes, G.H., C.L. Osler & D. Rime (2009)

Does a “correct” parameter estimate tell a better story about foreign exchange market efficiency?   ScienceDirect Required
Wang, P. & P. Wang (2009)

Out-of-sample exchange rate predictability with Taylor rule fundamentals   ScienceDirect Required
Molodtsova, T. & D.H. Papell (2009)

Heterogeneous Expectations and Exchange Rate Dynamics   Acrobat Required
Chiarella, C., X-Z. He & M. Zheng (2009)

Uncertainty aversion in a heterogeneous agent model of foreign exchange rate formation   ScienceDirect Required
Kozhan, R. & M. Salmon (2009)

Heterogeneity in exchange rate expectations: Evidence on the chartist–fundamentalist approach   ScienceDirect Required
Menkhoff, L., R.R. Rebitzky & M. Schröder (2009)

The economic value of fundamental and technical information in emerging currency markets   ScienceDirect Required
de Zwart, G., T. Markwat, L. Swinkels & D. van Dijk (2009)

Expectations and exchange rate dynamics: A state-dependent pricing approach   ScienceDirect Required
Landry, A. (2009)

Liquidity Shocks and Order Book Dynamics
Biais, B. & P-O. Weill (2009)

State-Uncertainty preferences and the Risk Premium in the Exchange rate market
Jimenez-Martin, J-A. & A.N. Cinca (2009)

Can a Habit Formation Model really explain the forward premium anomaly?   Acrobat Required
da Costa, C.E. & J.X. Vasconcelos (2009)

Model Misspecification, Learning and the Exchange Rate Disconnect Puzzle
Lewis, V. & A. Markiewicz (2009)

On the Unstable Relationship between Exchange Rates and Macroeconomic Fundamentals
Bacchetta, P. & E. van Wincoop (2009)

Asymmetric volatility in the foreign exchange markets   ScienceDirect Required
Wang, J. & M. Yang (2009)

Two currencies, one model? Evidence from the Wall Street Journal forecast poll   ScienceDirect Required
Frenkel, M., J-C. Rülke & G. Stadtmann (2009)

Monetary policy and exchange rate overshooting: Dornbusch was right after all | Published   ScienceDirect Required
Bjørnland, H.J. (2009)

Volatility Models : from GARCH to Multi-Horizon Cascades   Acrobat Required
Subbotin, A., T. Chauveau & K. Shapovalova (2009)

Exchange Rate Volatility and Output Volatility: A Theoretical Approach   Wiley Interscience Required
Grydaki, M. & S. Fountas (2009)

Exchange rates dependence: what drives it?
Benediktsdottir, S. & C. Scotti (2009)

The impact of macroeconomic announcements on real time foreign exchange rates in emerging markets
Cai, F., H. Joo & Z. Zhang (2009)

Informed trading in an electronic foreign exchange market   Acrobat Required
Gencay, R. & N. Gradojevic (2009)

Can Parameter Instability Explain the Meese-Rogoff Puzzle?   Acrobat Required
Bacchetta, P., E. van Wincoop & T. Beutler (2009)

Resolving the unbiasedness puzzle in the foreign exchange market   Acrobat Required
Thornton, D.L. (2009)

On causal Relationships Between Exchange Rates and Fundamentals: Better Than You Think   Acrobat Required
Christopoulos, D. & M.A. León-Ledesma (2009)

Identifying the effects of an exchange rate depreciation on country risk: Evidence from a natural experiment   ScienceDirect Required
Bordo, M.D., C.M. Meissner & M.D. Weidenmier (2009)

New evidence on nominal exchange rate predictability   ScienceDirect Required
Wu, J-L. & Y-H. Hu (2009)

Accounting for Incomplete Pass-Through | Published   Wiley Interscience Required
Nakamura, E. & D. Zerom (2009)

A Model of Market Clearing Exchange Rates   Acrobat Required
Parchure, R. (2009)

Evidence on the contrarian trading in foreign exchange markets   ScienceDirect Required
Wan, J-Y. & C-W. Kao (2009)

International Portfolio Balance – Modeling the External Adjustment Process   Acrobat Required
Nils, H., K. Clemens & M. Joan (2009)

Segmentation and time-of-day patterns in foreign exchange markets   ScienceDirect Required
Ranaldo, A. (2009)

Dynamical Clustering of Exchange Rates
Fenn, D.J., M.A. Porter, P.J. Mucha, M. McDonald, S. Williams, N.F. Johnson & N.S. Jones (2009)

Commodity prices, commodity currencies, and global economic developments
Groen, J.J.J. & P.A. Pesenti (2009)

The Intertemporal Relation between Expected Return and Risk on Currency   Acrobat Required
Bali, T. & K. Yilmaz (2009)

Can long-horizon forecasts beat the random walk under the Engel-West explanation?   Acrobat Required
Engel, C., J. Wang & J. Wu (2009)

Wavelet Based Volatility Clustering Estimation of Foreign Exchange Rates
Iyengar, A.N.K. (2009)

Exchange rate expectations: The role of person specific forward looking variables   ScienceDirect Required
Koske, I. & G. Stadtmann (2009)

The Carry Trade and Fundamentals: Nothing to Fear But FEER Itself | Published   ScienceDirect Required
Jorda, O. & A.M. Taylor (2009/12)

Time-Varying Currency Betas: Evidence from Developed and Emerging Markets   Acrobat Required
Jayasinghe, P. & A.K. Tsui (2009)

Currency Carry Trade Regimes: Beyond the Fama Regression | Published   ScienceDirect Required
Clarida, R., J. Davis & N. Pedersen (2009)

Announcement effect and intraday volatility patterns of euro-dollar exchange rate : monetary policy news arrivals and short-run dynamic response   Acrobat Required
Darmoul, M. & K. Mokhtar (2009)

For Rich or for Poor: When does Uncovered Interest Parity Hold?   Acrobat Required
Roche, M.J. & M.J. Moore (2009)

Segmentation across International Equity, Bond, and Foreign Exchange Markets   Acrobat Required
Ning, C. & S. Sapp (2009)

The Multi-Scale Interaction between Interest Rate, Exchange Rate and Stock Price
Hamrita, M.E., N. Ben Abdallah & S. Ben Ammou (2009)

Rise of the machines: algorithmic trading in the foreign exchange market
Chaboud, A., B. Chiquoine, E. Hjalmarsson & C. Vega (2009)

Order flows and the exchange rate disconnect puzzle   ScienceDirect Required
Evans, M.D.D. (2009)

A Macro-Finance Approach to Exchange Rate Determination   Acrobat Required
Chen, Y-C. & K.P. Tsang (2009)

A Disutility-Based Drift Control for Exchange Rates   Acrobat Required
Castellano, R., R. Cerqueti & R.L. D'Ecclesia (2009)

Modeling Exchange Rate Volatility   Wiley Interscience Required
Balg, B.A. & H. Metcalf (2010)

Detecting Crowded Trades in Currency Funds
Pojarliev, M. & R.M. Levich (2010)

Exchange Rate Pass-Through and Inflation: A Nonlinear Time Series Analysis   Acrobat Required
Shintani, M., A. Terada-Hagiwara & T. Yabu (2010)

International order flows: Explaining equity and exchange rate returns   ScienceDirect Required
Dunne, P., H. Hau & M. Moore (2010)

Foreign exchange, fractional cointegration and the implied–realized volatility relation   ScienceDirect Required
Kellard, N., C. Dunis & N. Sarantis (2010)

Commodity prices, commodity currencies, and global economic developments
Groen, J.J.J. & P. Pesenti (2010)

What Drives Exchange Rates? New Evidence from a Panel of U.S. Dollar Bilateral Exchange Rates   Acrobat Required
Cayen, J-P., D. Coletti, R. Lalonde & P. Maier (2010)

Do Currency Fundamentals Matter for Currency Speculators?
Nozaki, M. (2010)

Does the uncovered interest parity hold in short horizons?
Levent, K. (2010)

Risk-Premia, Carry-Trade Dynamics, and Economic Value of Currency Speculation
Wagner, C. (2010)

Bond currency denomination and the yen carry trade   Acrobat Required
Candelaria, C.A., J.A. Lopez & M.M. Spiegel (2010)

A stochastic dominance analysis of yen carry trades   ScienceDirect Required
Fong, W.M. (2010)

Investor Overconfidence and the Forward Premium Puzzle
Burnside, C., B. Han, D. Hirshleifer & T.Y. Wang (2010)

The Forward Premium Puzzle and Latent Factors Day by Day
Bernoth, K., C.G. de Vries & J. von Hagen (2010)

Fluctuations in the foreign exchange market: How important are monetary policy shocks?   ScienceDirect Required
Bouakez, H. & M. Normandin (2010)

An Investigation of the Causal Relations between Exchange Rates and Interest Rate Differentials Using Wavelets   Acrobat Required
Hacker, S., H. Kim & K. Månsson (2010)

Liquidity in the Foreign Exchange Market: Measurement, Commonality, and Risk Premiums   Acrobat Required
Mancini, L., A. Ranaldo & J. Wrampelmeyer (2010)

Causal Relationship between Stock Prices and Exchange Rates   Acrobat Required
Alagidede, P., T. Panagiotidis & X. Zhang (2010)

The Time-Varying Systematic Risk of Carry Trade Strategies   Acrobat Required
Christiansen, C., A. Ranaldo & P. Söderlind (2010)

A Transaction Data Study of the Forward Bias Puzzle
Breedon, F., D. Rime & P. Vitale (2010)

News announcements and price discovery in foreign exchange spot and futures markets   ScienceDirect Required
Chen, Y-L. & Y-F. Gau (2010)

Growth and inequality in a small open economy   ScienceDirect Required
Chen, Y-C. & S.J. Turnovsky (2010)

The demand for euros   ScienceDirect Required
Arnold, I.J.M. & S. Roelands (2010)

Exchange Rate and Industrial Commodity Volatility Transmissions, Asymmetries and Hedging Strategies   Acrobat Required
Hammoudeh, S.M., Y. Yuan & M. McAleer (2010)

Nominal exchange rate volatility, relative price volatility, and the real exchange rate   ScienceDirect Required
Ganguly, S. & J.B. Breuer (2010)

Testing the asset pricing model of exchange rates with survey data   Acrobat Required
Naszodi, A. (2010)

Does Foreign Exchange Reserve Decumulation Lead to Currency Appreciation?   Acrobat Required
Dominguez, K.M.E., R. Fatum & P. Vacek (2010)

Episodic Nonlinearity in Leading Global Currencies   Acrobat Required
Serletis, A., A.G. Malliaris, M. Hinich & P. Gogas (2010)

Renminbi's misalignment: A meta-analysis   ScienceDirect Required
Bineau, Y. (2010)

Search-Theoretic Money, Capital and International Exchange Rate Fluctuations | Published   Acrobat Required   Wiley Interscience Required
Gomis-Porqueras, P., T. Kam & J. Lee (2010/13)

Monetary Policy and the Uncovered Interest Parity Puzzle
Backus, D.K., F. Gavazzoni, C. Telmer & S.E. Zin (2010)

Testing unit roots and long range dependence of foreign exchange   Acrobat Required
Guegan, D. & Z. Lu (2010)

The influence of fundamentals on exchange rates: findings from analyses of news effects   Wiley Interscience Required
Rebitzsky, R.R. (2010)

Timing exchange rates using order flow: The case of the Loonie   ScienceDirect Required
King, M., L. Sarno & E. Sojli (2010)

Trader see, trader do: How do (small) FX traders react to large counterparties’ trades?   ScienceDirect Required
Menkhoff, L. & M. Schmeling (2010)

Taylor Rules and Exchange Rate Predictability in Emerging Economies | Published   Acrobat Required   ScienceDirect Required
Galimberti, J.K. & M.L. Moura (2010/13)

The Solution to the Forward-Bias and Related Puzzles | Published   Acrobat Required   ScienceDirect Required
Pippenger, J.E. (2010/11)

Countercyclical Currency Risk Premia | Published   ScienceDirect Required
Lustig, H., N. Roussanov & A. Verdelhan (2010/14)

A Cyclical Model of Exchange Rate Volatility | Published   Acrobat Required   ScienceDirect Required
Harris, R.D.F., E. Stoja & F. Yilmaz (2010/11)

Forecasting exchange rates: Non-linear adjustment and time-varying equilibrium   ScienceDirect Required
Grossmann, A. & D.G. McMillan (2010)

The electronic trading systems and bid-ask spreads in the foreign exchange market   ScienceDirect Required
Ding, L. & J. Hiltrop (2010)

Differences in beliefs and currency risk premiums   ScienceDirect Required
Beber, A., F. Breedon & A. Buraschi (2010)

On the Correlation Structure of Microstructure Noise: A Financial Economic Approach
Diebold, F.X. & G. Strasser (2010)

Currency Carry Trades
Berge, T.J., O. Jorda & A.M. Taylor (2010)

International money and stock market contingent claims   ScienceDirect Required
Gourieroux, C., A. Monfort & R. Sufana (2010)

Modeling exchange rate dependence dynamics at different time horizons   ScienceDirect Required
Dias, A. & P. Embrechts (2010)

Emerging floaters: Pass-throughs and (some) new commodity currencies   ScienceDirect Required
Kohlscheen, E. (2010)

Speculative capital and currency carry trades   ScienceDirect Required
Jylhä, P. & M. Suominen (2010)

Adaptive Forecasting of Exchange Rates with Panel Data   Acrobat Required
Morales-Arias, L. & A. Dross (2010)

A Transaction Data Study of the Forward Bias Puzzle
Breedon, F., D. Rime & P. Vital (2010)

Exchange rate response to macronews: Through the lens of microstructure   ScienceDirect Required
Savaser, T. (2010)

Money Supply Rules and Exchange Rate Dynamics   Acrobat Required
Tervala, J. (2010)

Price Discovery in Currency Markets | Published   Acrobat Required   ScienceDirect Required
Osler, C., A. Mende & L. Menkhoff (2010/11)

Extreme Returns: The Case of Currencies | Published   Acrobat Required   ScienceDirect Required
Osler, C. & T. Savaser (2010/11)

Micro approaches to Foreign Exchange Determination   Acrobat Required   SURVEY PAPER
Evans, M. & D. Rime (2010)

The Microstructure of Currency Markets   Acrobat Required   SURVEY PAPER
Evans, M. (2011)

The Predictive Information Content of External Imbalances for Exchange Rate Returns: How Much Is It Worth?   Acrobat Required
Della Corte, P., L. Sarno & G. Sestieri (2011)

Adaptive Forecasting of Exchange Rates with Panel Data   Acrobat Required
Morales-Arias, L. & A. Dross (2011)

Exchange rate determination, macroeconomic dynamics and stability under heterogeneous behavioral FX expectations   ScienceDirect Required
Proaño, C.R. (2011)

Sex Ratios and Exchange Rates
Du, Q. & S-J. Wei (2011)

Do technical trading profits remain in the foreign exchange market? Evidence from 14 currencies   ScienceDirect Required
Cialenco, I. & A. Protopapadakis (2011)

Fundamentalists vs. chartists: Learning and predictor choice dynamics   ScienceDirect Required
Berardi, M. (2011)

A Macro-Finance Approach to Exchange Rate Determination   Acrobat Required
Chen, Y-C. & K.P. Tsang (2011)

Carry Trades and Global Foreign Exchange Volatility
Menkhoff, L., L. Sarno, M. Schmeling & A. Schrimpf (2011)

Uncovered interest-rate parity over the past two centuries   ScienceDirect Required
Lothian, J.R. & L. Wu (2011)

Financial amplification of foreign exchange risk premia   ScienceDirect Required
Adrian, T., E. Etula, J.J.J. Groen (2011)

Nonlinearity and time-variation in the monetary model of exchange rates   ScienceDirect Required
Junttila, J. & M. Korhonen (2011)

On the sources of private information in FX markets   ScienceDirect Required
Moore, M.J. & R. Payne (2011)

A Simple Test of Momentum in Foreign Exchange Markets   Acrobat Required
Garcia-Suaza, A.F. & J.E. Gómez (2011)

Carry Trade and Momentum in Currency Markets
Burnside, C., M.S. Eichenbaum & S. Rebelo (2011)

Spot and forward volatility in foreign exchange   ScienceDirect Required
Della Corte, P., L. Sarno & I. Tsiakas (2011)

Uncovered Interest Parity: Cross-Sectional Evidence   Wiley Interscience Required
Lee, B-J. (2011)

Analysis of the intraday effects of economic releases on the currency market   ScienceDirect Required
Sun, E.W., O. Rezania, S.T. Rachev & F. J. Fabozzi (2011)

Exchange Rates in Emerging Countries: Eleven Empirical Regularities from Latin America and East Asia
Edwards, S. (2011)

An investigation of customer order flow in the foreign exchange market   ScienceDirect Required
Cerrato, M., N. Sarantis & A. Saunders (2011)

Gold and the Dollar (and the Euro, Pound, and Yen)   ScienceDirect Required
Pukthuanthong, K. & R. Roll (2011)

Solving Exchange Rate Puzzles with neither Sticky Prices nor Trade Costs   Acrobat Required
Roche, M.J. & M.J. Moore (2011)

Trading volume and exchange rate volatility: Evidence for the sequential arrival of information hypothesis   ScienceDirect Required
Mougoué, M. & R. Aggarwal (2011)

Exchange Rates and Fundamentals: Co-Movement, Long-Run Relationships and Short-run Dynamics | Published   Adobe Acrobat Required   ScienceDirect Required
Bekiros, S. (2011/13)

Flexible inflation targets, forex interventions and exchange rate volatility in emerging countries | Published   Adobe Acrobat Required   ScienceDirect Required
Berganza, J.C. & C. Broto (2011/12)

Carry Trades and Risk
Burnside, C. (2011)

Risk, Monetary Policy and the Exchange Rate
Benigno, G., P. Benigno & S. Nistico (2011)

Exchange rate dynamics under state-contingent stochastic process switching   ScienceDirect Required
Naszodi, A. (2011)

Intertemporal risk-return trade-off in foreign exchange rates   ScienceDirect Required
Christiansen, C. (2011)

The forward-bias puzzle: Still unsolved   ScienceDirect Required
Müller, C. (2011)

On the (in)feasibility of covered interest parity as a solution to the forward bias puzzle   ScienceDirect Required
Chang, S.S. (2011)

Possible solutions to the forward bias paradox   ScienceDirect Required
Baillie, R.T. (2011)

Properties of Foreign Exchange Risk Premiums | Published   ScienceDirect Required
Sarno, L., P. Schneider & C. Wagner (2011/12)

The information content of a limit order book: The case of an FX market   ScienceDirect Required
Kozhan, R. & M. Salmon (2011)

Order Flows, Fundamentals and Exchange Rates   Acrobat Required
Iwatsubo, K. & I.W. Marsh (2011)

Structural Breaks and the Equilibrium Chinese Yuan/US Dollar Real Exchange Rate: A FEER Approach   Wiley Interscience Required
You, K. & N. Sarantis (2011)

Regime switches in exchange rate volatility and uncovered interest parity   ScienceDirect Required
Ichiue, H. & K. Koyama (2011)

Markov-switching regimes and the monetary model of exchange rate determination: Evidence from the Central and Eastern European markets   ScienceDirect Required
Syllignakis, M.N. & G.P. Kouretas (2011)

Exchange rate misalignment estimates – Sources of differences   Acrobat Required
Cheung, Y-W. & E. Fujii (2011)

Lessons from the evolution of foreign exchange trading strategies | Published   Acrobat Required   ScienceDirect Required
Neely, C.J. & P.A. Weller (2011/13)

A Risk-Driven Approach to Exchange-Rate Modelling | Published   Acrobat Required   ScienceDirect Required
Keblowski, P. & A. Welfe (2011/12)

Foreign exchange market structure, players and evolution
King, M.R., C. Osler & D. Rime (2011)

The Forward Premium Puzzle in a Two-Country World
Martin, I. (2011)

Sources of exchange rate fluctuations with Taylor rule fundamentals   ScienceDirect Required
Kempa, B. & W. Wilde (2011)

Emerging markets and portfolio foreign exchange risk: An empirical investigation using a value-at-risk decomposition technique   ScienceDirect Required
Sirr, G., J. Garvey & L. Gallagher (2011)

The puzzling peso   ScienceDirect Required
Arteta, C., S.B. Kamin & J. Vitanza (2011)

A twelve-area model for the equilibrium Chinese Yuan/US dollar nominal exchange rate   ScienceDirect Required
You, K. & N. Sarantis (2011)

Effects of monetary policy on the $/£ exchange rate. Is there a 'delayed overshooting puzzle'?   Acrobat Required
Heinlein, R. & H-M. Krolzig (2011)

Currency Momentum Strategies | Published   ScienceDirect Required
Menkhoff, L., L. Sarno, M. Schmeling & A. Schrimpf (2012)

Continuous time regime switching model applied to foreign exchange rate   Acrobat Required
Goutte, S. & B. Zou (2012)

Short-run forecasting of the euro-dollar exchange rate with economic fundamentals   ScienceDirect Required
Dal Bianco, M., M. Camacho & G.P. Quiros (2012)

Do market fundamentals determine the Dollar–Euro exchange rate?   ScienceDirect Required
Apergis, N., G.K. Zestos & D.S. Shaltayev (2012)

The Scapegoat Theory of Exchange Rates: The First Tests | Published   ScienceDirect Required
Fratzscher, M., L. Sarno & G. Zinna (2012/15)

Are exchange rates serially correlated? New evidence from the Euro FX markets   ScienceDirect Required
Cheung, W-K. A., J-J. Su & A. Kim Choo (2012)

The Euro/Dollar exchange rate: Chaotic or non-chaotic? A continuous time model with heterogeneous beliefs   ScienceDirect Required
Federici, D. & G. Gandolfo (2012)

Sources of Risk in Currency Returns   Acrobat Required
Graveline, J., I. Zviadadze & M. Chernov (2012)

Temporal dimension and equilibrium exchange rate: A FEER/BEER comparison   ScienceDirect Required
Lòpez-Villavicencio, A., J. Mazier & J. Saadaoui (2012)

Risk appetite, carry trade and exchange rates   ScienceDirect Required
Liu, M-H., D. Margaritis & A. Tourani-Rad (2012)

Comprehensive Analysis of Market Conditions in the Foreign Exchange Market: Fluctuation Scaling and Variance-Covariance Matrix
Sato, A-H., T. Hayashi & Janusz A. Holyst (2012)

Can Oil Prices Forecast Exchange Rates? | Published   ScienceDirect Required
Ferraro, D., K.S. Rogoff & B. Rossi (2012/15)

A Note on Forecasting Emerging Market Exchange Rates: Evidence of Anti-herding   Wiley Interscience Required
Pierdzioch, C., J-C. Rülke & G. Stadtmann (2013)

Exchange rates and oil prices: A multivariate stochastic volatility analysis   ScienceDirect Required
Ding, L. & M. Vo (2012)

Modelling oil price and exchange rate co-movements   ScienceDirect Required
Reboredo, J.C. (2012)

Do momentum-based trading strategies work in emerging currency markets?   ScienceDirect Required
Tajaddini, R. & T.F. Crack (2012)

Ambiguity Aversion: Implications for the Uncovered Interest Rate Parity Puzzle
Ilut, C. (2012)

Macroeconomic Determinants of Carry Trade Activity   Wiley Interscience Required
Anzuini, A. & F. Fornari (2012)

International Correlation Risk   Acrobat Required
Stathopoulos, A., A. Vedolin & P. Mueller (2012)

Model uncertainty and exchange rate volatility   Wiley Interscience Required
Markiewicz, A. (2012)

FX Counterparty Risk and Trading Activity in Currency Forward and Futures Markets | Published   ScienceDirect Required
Levich, R.M. (2012)

A Long-Run Risks Explanation of Predictability Puzzles in Bond and Currency Markets
Bansal, R. & I. Shaliastovich (2012)

Commodity Trade and the Carry Trade: a Tale of Two Countries   Acrobat Required
Roussanov, N. & R. Ready (2012)

The Exchange Rate Pass -Through to Import and Export Prices: The Role of Nominal Rigidities and Currency Choice
Choudhri, E.U. & D. Hakura (2012)

Exchange-rate return predictability and the adaptive markets hypothesis: Evidence from major foreign exchange rates   ScienceDirect Required
Charles, A., O. Darné & J.H. Kim (2012)

Factor Model Forecasts of Exchange Rates
Engel, C., N.C. Mark & K.D. West (2012)

Long Horizon Uncovered Interest Parity Re-Assessed
Chinn, M.D. & S. Quayyum (2012)

Free Lunch! Arbitrage Opportunities in the Foreign Exchange Markets
Ito, T., K. Yamada, M. Takayasu & H. Takayasu (2012)

Importers, Exporters, and Exchange Rate Disconnect
Amiti, M., O. Itskhoki & J. Konings (2012)

Exchange Rate Determination, Risk Sharing and the Asset Market View
Burnside, A.C. & J.J. Graveline (2012)

Asymmetries and state dependence: The impact of macro surprises on intraday exchange rates   ScienceDirect Required
Fatum, R., M. Hutchison & T. Wu (2012)

Modeling the horizon-dependent ex-ante risk premium in the foreign exchange market: Evidence from survey data   ScienceDirect Required
Prat, G. & R. Uctum (2013)

The Behavior of Currencies during Risk-off Episodes
De Bock, R. & I. Carvalho Filho (2013)

Fiscal deficits and mean reversion in real exchange rates   ScienceDirect Required
Gu, J., Q. Li & J. Yang (2013)

Hot Tip: Nominal Exchange Rates and Inflation Indexed Bond Yields
Clarida, R.H. (2013)

Carry trade and foreign exchange rate puzzles   ScienceDirect Required
Spronk, R., W.F.C. Verschoor & R.C.J. Zwinkels (2013)

The microstructure of covered interest arbitrage in a market with a dominant market maker   ScienceDirect Required
Liu, H-C. & M.D. Witte (2013)

Exchange Rate Determination, Risk Sharing and the Asset Market View
Burnside, A.C. & J.J. Graveline (2013)

Exchange rate expectations of chartists and fundamentalists   ScienceDirect Required
Dick, C.D. & L. Menkhoff (2013)

Is the Relationship Between Prices and Exchange Rates Homogeneous?   ScienceDirect Required
Hall, S.G., G. Hondroyiannis, A. Kenjegaliev, P.A.V.B. Swamy & G.S. Tavlas (2013)

Nonlinear Exchange Rate Adjustment and the Monetary Model   Wiley Interscience Required
Beckmann, J. (2013)

Exchange Rates and Interest Parity   SURVEY PAPER
Engel, C. (2013)

Exchange rates and commodity prices: measuring causality at multiple horizons   Acrobat Required
Zhang, H.J., J-M. Dufour & J. Galbraith (2013)

Financial crises and dynamic linkages among international currencies   ScienceDirect Required
Dimitriou, D. & D. Kenourgios (2013)

Predictability of currency carry trades and asset pricing implications   ScienceDirect Required
Bakshi, G. & G. Panayotov (2013)

Currency Jumps, Cojumps and the Role of Macro News   ScienceDirect Required
Chatrath, A., H. Miao, S. Ramchander & S. Villupuram (2013)

Effects of Speculation and Interest Rates in a "Carry Trade" Model of Commodity Prices | Published   ScienceDirect Required
Frankel, J.A. (2013)

Which Fundamentals Drive Exchange Rates? A Cross-Sectional Perspective
Sarno, L. & M. Schmeling (2013)

Delayed Overshooting: It's an 80s Puzzle   Acrobat Required
Kim, S-H., S. Moon & C. Velasco (2013)

Time-Varying International Diversification and the Forward Premium   ScienceDirect Required
Jonen, B. & S. Scheuring (2013)

Currency Wars   Acrobat Required
Zhang, W., T. Mertens & T. Hassan (2013)

Volatility Risk Premia and Exchange Rate Predictability | Published   ScienceDirect Required
Della Corte, P., T. Ramadorai & L. Sarno (2013/16)

General equilibrium pricing of currency and currency options   ScienceDirect Required
Du, D. (2013)

Carry   Recommended!
Koijen, R., T.J. Moskowitz, L.H. Pedersen & E.B. Vrugt (2013)

Abstract: Any security’s expected return can be decomposed into its “carry” and its expected price appreciation, where carry is a model-free characteristic that can be observed in advance. While carry has been studied almost exclusively for currencies, we find that carry predicts returns both in the cross section and time series for a variety of different asset classes including global equities, global bonds, commodities, US Treasuries, credit, and options. This predictability rejects a generalized version of the uncovered interest rate parity and expectations hypothesis in favor of models with varying risk premia. Our global carry factor across markets delivers strong average returns and, while it is exposed to recession, liquidity, and volatility risks, its performance presents a challenge to asset pricing models.

I discovered the peso problem: Irving Fisher and the UIP puzzle   ScienceDirect Required
Lothian, J.R., R.A.J. Pownall & K.G. Koedijk (2013)

The market microstructure approach to foreign exchange: Looking back and looking forward   ScienceDirect Required
King, M.R., C.L. Osler & D. Rime (2013)

The Term Structure of Currency Carry Trade Risk Premia
Lustig, H., A. Stathopoulos & A. Verdelhan (2013)

An analysis of forward exchange rate biasedness across developed and developing country currencies: Do observed patterns persist out of sample?   ScienceDirect Required
Loring, G. & B. Lucey (2013)

Exchange rate dynamics revisited
de Macedo, J.B. & U. Lempinen (2013)

Currency Risk Premia and Uncovered Interest Parity in the International CAPM   ScienceDirect Required
Balvers, R.J. & A.F. Klein (2013)

Exchange Rate Predictability
Rossi, B. (2014)

Forecasting Exchange Rates Out-of-Sample with Panel Methods and Real-Time Data   ScienceDirect Required
Ince, O. (2014)

Macroeconomic fundamentals and the exchange rate dynamics: A no-arbitrage macro-finance approach   ScienceDirect Required
Yin, W. & J. Li (2014)

International Liquidity and Exchange Rate Dynamics
Gabaix, X. & M. Maggiori (2014)

Can time varying risk premiums explain the excess returns in the interest rate parity condition?   ScienceDirect Required
Aysun, U. & S. Lee (2014)

Forecasting exchange rates using panel model and model averaging   ScienceDirect Required
Garratt, A. & E. Mise (2014)

Foreign Exchange Risk and the Predictability of Carry Trade Returns   ScienceDirect Required
Cenedese, G., L. Sarno & I. Tsiakas (2014)

Order Choices under Information Asymmetry in Foreign Exchange Markets   ScienceDirect Required
Gau, Y-F. & Z-X. Wu (2014)

What explains deviations in the unbiased expectations hypothesis? Market irrationality vs. the peso problem   ScienceDirect Required
Chen, C.Y-H., I-D. Kuo & T.C. Chiang (2014)

Is There Momentum or Reversal in Weekly Currency Returns?   ScienceDirect Required
Raza, A., B.R. Marshall & N. Visaltanachoti (2014)

The Dynamic Relationship between Exchange Rates and Macroeconomic Fundamentals: Evidence from Pacific Rim Countries   ScienceDirect Required
Chang, M-J. & C-Y. Su (2014)

The Unbeatable Random Walk in Exchange Rate Forecasting: Reality or Myth?   ScienceDirect Required
Moosa, I. & K. Burns (2014)

Model Uncertainty and the Forward Premium Puzzle   ScienceDirect Required
Djeutem, E. (2014)

The impact of monetary policy on the exchange rate: A high frequency exchange rate puzzle in emerging economies   ScienceDirect Required
Kohlscheen, E. (2014)

Co-dependence of extreme events in high frequency FX returns   ScienceDirect Required
Polanski, A. & E. Stoja (2014)

Generating currency trading rules from the term structure of forward foreign exchange premia   ScienceDirect Required
Sager, M. & M.P. Taylor (2014)

The Long-Run Component of Foreign Exchange Volatility and Stock Returns   ScienceDirect Required
Du, D. & O. Hu (2014)

An Incomplete Markets Explanation to the UIP Puzzle | Published   Acrobat Required   Wiley Interscience Required
Rabitsch, K. (2014/16)

Crash-neutral currency carry trades   ScienceDirect Required
Jurek, J.W. (2014)

Forward and Spot Exchange Rates in a Multi-currency World
Hassan, T.A. & R.C. Mano (2014)

International correlation risk \
Mueller, P., A. Stathopoulos & A. Vedolin (2014)

Carry Trade, Uncovered Interest Parity and Monetary Policy   Acrobat Required
Felcser, D. & B. Vonnák (2014)

The exchange rate effect of multi-currency risk arbitrage   ScienceDirect Required
Hau, H. (2014)

Currency excess returns and global downside market risk   ScienceDirect Required
Atanasov, V. & T. Nitschka (2014)

Higher order beliefs and the dynamics of exchange rates   Acrobat Required
Pancotto, F., G. Pignataro & D. Raggi (2014)

Destabilizing carry trades   Acrobat Required
Plantin, G. & H.S. Shin (2014)

New estimates of time-varying currency betas: A trivariate BEKK approach   ScienceDirect Required
Jayasinghe, P., A.K. Tsui & Z. Zhang (2014)

The Carry Trade: Risks and Drawdowns
Daniel, K., R.J. Hodrick & Z. Lu (2014)

Quantifying Informational Linkages in a Global Model of Currency Spot Markets   Acrobat Required
Greenwood-Nimmo, M., V-H. Nguyen & Y. Shin (2014)

Price dynamics in the Belarusian black market for foreign exchange   ScienceDirect Required
Huett, H., M. Krapf & S.D. Uysal (2014)

Economic Policy Uncertainty and Exchange Rate Volatility   Wiley Interscience Required
Krol, R. (2014)

Understanding Exchange Rate Behaviour   Wiley Interscience Required   SURVEY PAPER
Chen, Y-C. (2014)

Conditional risk premia in currency markets and other asset classes   ScienceDirect Required
Lettau, M., M. Maggiori & M. Weber (2014)

Financial constraints, firm entry, and exchange rate pass-through   ScienceDirect Required
Kosaka, M.S. (2014)

Exchange Rate Predictability in a Changing World | Published   ScienceDirect Required
Byrne, J.P., D. Korobilis & P.J. Ribeiro (2014/16)

A Dynamic Exchange Rate Model with Heterogeneous Agents   Acrobat Required
Gori, M. & G. Ricchiuti (2014)

What Makes a Commodity Currency?   Acrobat Required
Lee, D. & Y-C. Chen (2014)

Explaining exchange rate anomalies in a model with Taylor-rule fundamentals and consistent expectations | Published   Acrobat Required   ScienceDirect Required
Lansing, K.J. & J. Ma (2014/17)

Fact or friction: Jumps at ultra high frequency?   ScienceDirect Required
Christensen, K., R.C.A. Oomen & M. Podolskij (2014)

Forex Trading and the WMR Fix   Acrobat Required
Evans, M. (2014)

Carry Trade Activities: A Multivariate Threshold Model Analysis   Acrobat Required
Gubler, M. (2014)

What Makes a Currency Procyclical? An Empirical Investigation | Published   ScienceDirect Required
Cordella, T. & P. Gupta (2014/15)

An empirical examination of heterogeneity and switching in foreign exchange markets   ScienceDirect Required
Goldbaum, D. & R.C.J. Zwinkels (2014)

Exchange Rates Dynamics with Long-Run Risk and Recursive Preferences   Acrobat Required
Kollmann, R. (2014)

Oil prices, exchange rates and asset prices   Acrobat Required
Fratzscher, M., D. Schneider & I. Van Robays (2014)

Exchange Rates Dynamics with Long-Run Risk and Recursive Preferences   Acrobat Required
Kollmann, R. (2014)

The dynamics of exchange rate volatility: A panel VAR approach   ScienceDirect Required
Grossmann, A., I. Love & A.G. Orlov (2014)

Common Macro Factors and Currency Premia
Filippou, I. & M.P. Taylor (2014)

Exchange rates, expected returns and risk: UIP unbound   Acrobat Required
Munro, A. (2014)

Can interest rate factors explain exchange rate fluctuations?   Acrobat Required
Yung, J. (2014)

Exchange Rate Forecasts and Expected Fundamentals   Acrobat Required
Dick, C.D., R. MacDonald & L. Menkhoff (2014)

The Macroeconomic Effects of Debt- and Equity-Based Capital Inflows | Published   Acrobat Required   ScienceDirect Required
Davis, S. (2014/15)

The Portfolio Theory of Exchange Rates-Then and Now   Wiley Interscience Required
Black, S.W. (2015)

Exchange Rates, Interest Rates, and the Risk Premium | Published   Recommended!
Engel, C. (2015/16)

Abstract: The well-known uncovered interest parity puzzle arises from the empirical regularity that, among developed country pairs, the high interest rate country tends to have high expected returns on its short term assets. At the same time, another strand of the literature has documented that high real interest rate countries tend to have currencies that are strong in real terms - indeed, stronger than can be accounted for by the path of expected real interest differentials under uncovered interest parity. These two strands - one concerning short-run expected changes and the other concerning the level of the real exchange rate - have apparently contradictory implications for the relationship of the foreign exchange risk premium and interest-rate differentials. This paper documents the puzzle, and shows that existing models appear unable to account for both empirical findings. The features of a model that might reconcile the findings are discussed.

Exchange Rate Dynamics and Forecast Errors about Persistently Trending Fundamentals   Acrobat Required
Stillwagon. J.R. (2015)

The failure of the monetary model of exchange rate determination   Acrobat Required
Afat, D., M. Gómez-Puig & S. Sosvilla-Rivero (2015)

Foreign exchange market inefficiency and exchange rate anomalies   ScienceDirect Required
Li, J. & N.C. Miller (2015)

Currency forecast errors and carry trades at times of low interest rates: Evidence from survey data on the yen/dollar exchange rate   ScienceDirect Required
MacDonald, R. & J. Nagayasu (2015)

The behavior of currencies during risk-off episodes   ScienceDirect Required
De Bock, R. & I. de Carvalho Filho (2015)

Exchange rate forecasts and expected fundamentals   ScienceDirect Required
Dick, C.D., R. MacDonald & L. Menkhoff (2015)

Currency Exposure to Downside Risk: Which Fundamentals Matter?   Wiley Interscience Required
Dobrynskaya, V. (2015)

High-frequency, Algorithmic Spillovers Between NASDAQ and Forex
Ito, T. & M. Yamada (2015)

A Liquidity-Based Resolution of the Uncovered Interest Parity Puzzle   Acrobat Required
Jung, K.M. & S. Lee (2015)

Uncovered Interest Parity and Monetary Policy Near and Far from the Zero Lower Bound
Chinn, M.D. & Y. Zhang (2015)

Market Structure and Exchange Rate Pass-Through | Published   ScienceDirect Required
Auer, R. & R. Schoenle (2015/16)

Carry and Trend Following Returns in the Foreign Exchange Market   Acrobat Required
Clare, A., J. Seaton, P.N. Smith & S. Thomas (2015)

Understanding the price of volatility risk in carry trades   ScienceDirect Required
Ahmed, S. & G. Valente (2015)

Trading price jump clusters in foreign exchange markets   ScienceDirect Required
Novotny, J., D. Petrov & G. Urga (2015)

Order Flow Information and Spot Rate Dynamics   Acrobat Required
Evans, M. & D. Rime (2015)

Convergence of absolute purchasing power parity   Acrobat Required
Zhang, Z. (2015)

Third-country effects on the exchange rate   ScienceDirect Required
Berg, K.A. & N.C. Mark (2015)

Short-horizon excess returns and exchange rate and interest rate effects   ScienceDirect Required
Joseph, N.L., N. Lambertides & C.S. Savva (2015)

Understanding the common dynamics of the emerging market currencies   ScienceDirect Required
Chadwick, M.G., F. Fazilet & N. Tekatli (2015)

Modeling the impact of exchange rates using a multicurrency framework   ScienceDirect Required
Meng, S. (2015)

Commodity Currencies Revisited   Acrobat Required
Passari, E. (2015)

The Taylor Rule, Wealth Effects and the Exchange Rate | Published   Wiley Interscience Required   Acrobat Required
Wang, R., B. Morley & J. Ordóñez (2015/16)

What Do Stock Markets Tell Us About Exchange Rates?
Cenedese, G., R. Payne, L. Sarno & G. Valente (2015)

Reassessing exchange rate overshooting in a monetary framework   Acrobat Required
Bhadury, S.S. & T. Ghosh (2015)

Safe haven currencies: a portfolio perspective   Acrobat Required
Cenedese, G. (2015)

The Carry Trade and UIP when Markets are Incomplete   Acrobat Required
Garlappi, L. & J. Favilukis (2015)

The Relation between National Stock Prices and Effective Exchange Rates: Does It Affect Exchange Rate Exposure?   De Gruyter Journals Required
Korhonen, M. (2015)

Not so Disconnected: Exchange Rates and the Capital Stock | Published   ScienceDirect Required
Hassan, T.A., T. Mertens & T. Zhang (2015/16)

What's news in exchange rate dynamics: A DSGE approach   ScienceDirect Required
Chen, K. & S. Zhang (2015)

Enhancing the forecasting power of exchange rate models by introducing nonlinearity: Does it work?   ScienceDirect Required
Burns, K. & I.A. Moosa (2015)

Google Trends and Forecasting Performance of Exchange Rate Models   Acrobat Required
Bulut, L. (2015)

A new technique for estimating currency premiums   Acrobat Required
Imakubo, K., K. Kamada & K. Kan (2015)

Investor attention and FX market volatility   ScienceDirect Required
Goddard, J., A. Kita & Q. Wang (2015)

Is Exchange Rate Trading Profitable?   ScienceDirect Required
Narayan, P.K., S. Mishra, S. Narayan & K. Thuraisamy (2015)

Global dollar credit and carry trades: a firm-level analysis
Bruno, V. & H.S. Shin (2015)

Liquidity premia and interest rate parity   ScienceDirect Required
Linnemann, L. & A. Schabert (2015)

Can implied volatility predict returns on the currency carry trade?   ScienceDirect Required
Egbers, T. & L. Swinkels (2015)

Was the Forex Fixing Fixed?
Ito, T. & M. Yamada (2015)

Half-lives of currencies and aggregation bias   ScienceDirect Required
Kunkler, M. & R. MacDonald (2015)

Trend Fundamentals and Exchange Rate Dynamics
Kaufmann, D. & F. Huber (2015)

Breaking the Curse of Kareken and Wallace with Private Information   Acrobat Required
Gomis-Porqueras, P., T. Kam & C.J. Waller (2015)

Can the Consumption Capital Asset Pricing Model Account for Traders' Expected Currency Returns?   Wiley Interscience Required
Stillwagon, J.R. (2015)

Noisy news and exchange rates: A SVAR approach   ScienceDirect Required
Redl, C. (2015)

International Evidence on the Role of Monetary Policy in the Uncovered Interest Rate Parity Puzzle   Acrobat Required
Guender, A.V. (2015)

Government spending and the exchange rate   Acrobat Required
Di Giorgio, G., S. Nisticò & G. Traficante (2015)

Currency Premia and Global Imbalances   Acrobat Required
Riddiough, S., L. Sarno & P. Della Corte (2014)

Foreign exchange predictability during the financial crisis: implications for carry trade profitability
Anatolyev, S., N. Gospodinov, I. Jamali & X. Liu (2015)

The tail risk premia of the carry trades   ScienceDirect Required
Dupuy, P. (2015)

Exchange Rate and Current Account Dynamics: the Role of Asset Market Structure, Long-Run Risk and Risk Appetite   Acrobat Required
Kollmann, R. (2015)

Microstructure order flow: statistical and economic evaluation of nonlinear forecasts   ScienceDirect Required
Cerrato, M., H. Kim & R. MacDonald (2015)

Revisiting the relationship between exchange rates and fundamentals   ScienceDirect Required
Chen, S-S. & Y-H. Chou (2015)

Exchange Rates and UIP Violations at Short and Long Horizons   Acrobat Required
Valchev, R. (2015)

Revisiting the role of inflation environment in exchange rate pass-through: A panel threshold approach   ScienceDirect Required
Ben Cheikh, N. & W. Louhichi (2015)

Downside and upside risk spillovers between exchange rates and stock prices   ScienceDirect Required
Reboredo, J.C., M.A. Rivera-Castro & A. Ugolini (2015)

Risk appetite and exchange rates
Adrian, T., E. Etula & H.S. Shin (2015)

Forecasting exchange rates using multivariate threshold models   De Gruyter Journals Required
Huber, F. (2015)

Monetary policy and exchange rate dynamics   Acrobat Required
Stavrakeva, V. & J. Tang (2015)

What can Big Data tell us about the passthrough of big exchange rate changes?
Lewis, J. (2016)

Financial Markets' Views about the Euro-Swiss Franc Floor
Jermann, U.J. (2016)

Sovereign yields and the risk-taking channel of currency appreciation   Acrobat Required
Hofmann, B., I. Shim & H.S. Shin (2016)

Does Incomplete Spanning in International Financial Markets Help to Explain Exchange Rates?
Lustig, H. & A. Verdelhan (2016)

Limits to Arbitrage and Deviations from Covered Interest Rate Parity   Acrobat Required
Pinnington, J. & M. Shamloo (2016)

Exchange Rates and Fundamentals: A General Equilibrium Exploration   Acrobat Required
Kano, T. (2016)

Agreeing on disagreement: heterogeneity or uncertainty?   Acrobat Required
ter Ellen, S., W.F.C. Verschoor & R.C.J. Zwinkels (2016)

Pricing errors and the geography of trade in the foreign exchange market   ScienceDirect Required
Piccotti, L.R. (2016)

When the walk is not random: commodity prices and exchange rates
Kohlscheen, E., F. Avalos & A. Schrimpf (2016)

The speed of the exchange rate pass-through
Bonadio, B., A.M. Fischer & P. Sauré (2016)

Deep habits and exchange rate pass-through   Acrobat Required
Jacob, P. & L. Uuskula (2016)

Currency momentum, carry trade, and market illiquidity   ScienceDirect Required
Orlov, V. (2016)

How do Experts Forecast Sovereign Spreads?
Cimadomo, J., P. Claeys & M. Poplawski-Ribeiro (2016)

State-dependent exchange rate pass-through behavior   ScienceDirect Required
Donayre, L. & I. Panovska (2016)

What do retail FX traders learn?   ScienceDirect Required
Hayley, S. & I.W. Marsh (2016)

U.S. Dollar Dynamics: How Important Are Policy Divergence and FX Risk Premiums?
Balakrishnan, R., S. Laseen & A. Pescatori (2016)

Exchange rate forecasting with DSGE models   Acrobat Required
Ca' Zorzi, M., M. Kolasa & M. Rubaszek (2016)

The Forward Premium Bias, Carry Trade Return and the Risks of Volatility and Liquidity   Acrobat Required
Shehadeh, A., Y. Li & M. Moore (2016)

Currency Value
Menkhoff, L., L. Sarno, M. Schmeling & A. Schrimpf (2016)

Unconventional Monetary Policy and International Risk Premia   Acrobat Required
Rogers, J.H., C. Scotti & J.H. Wright (2016)

Can exchange rate pass-through explain the price puzzle?   ScienceDirect Required
Ali, S.Z. & S. Anwar (2016)

Exchange Rates and Monetary Policy Uncertainty   Acrobat Required
Vedolin, A., A. Tahbaz-Salehi & P. Mueller (2016)

Global Macro Risks in Currency Excess Returns   Acrobat Required
Berg, K. & N.C. Mark (2016)

Do carry trade returns show signs of long memory?   ScienceDirect Required
Auer, B.R. & A. Hoffmann (2016)

The skewness risk premium in currency markets   ScienceDirect Required
Broll, M. (2016)

Considering all microstructure effects: The extension of a trade indicator model   ScienceDirect Required
Ryu, D. (2016)

Understanding bilateral exchange rate risks   ScienceDirect Required
Li, G., J. Zhu & J. Li (2016)

Macro uncertainty and currency premia   Acrobat Required
Krecetovs, A. & P. Della Corte (2016)

Technical trading: Is it still beating the foreign exchange market?   ScienceDirect Required
Hsu, P-H., M.P. Taylor & Z. Wang (2016)

A Network Model of Multilaterally Equilibrium Exchange Rates
Kireyev, A.P. & A. Leonidov (2016)

Cointegration, error correction and exchange rate forecasting   ScienceDirect Required
Moosa, I.A. & J.J. Vaz (2016)

Evidence of risk premiums in emerging market carry trade currencies   ScienceDirect Required
Coelho dos Santos, M.B., M.C. Klotzle, A.C. Figueiredo Pinto (2016)

Gravity in FX R^{2}: Understanding the Factor Structure in Exchange Rates   Acrobat Required
Lustig, H. & R.J. Richmond (2016)

Carry trades and monetary conditions   Acrobat Required
Falconio, A. (2016)

Are Exchange Rates Disconnected from Macroeconomic Variables? Evidence from the Factor Approach   Acrobat Required
Kim, Y. & C. Park (2016)

Exchange Rate Pass-Through into Retail Prices   Wiley Interscience Required
Antoniades, A. & N. Zaniboni (2016)

Monetary policy and exchange rates: Further evidence using a new method for implementing sign restrictions   ScienceDirect Required
Fisher, L.A. & H-S. Huh (2016)

A heterogeneous agent exchange rate model with speculators and non-speculators   ScienceDirect Required
Elias, C.J. (2016)

Puzzles in the Forex Tokyo "Fixing": Order Imbalances and Biased Pricing by Banks
Ito, T. & M. Yamada (2016)

Order flow information and spot rate dynamics   ScienceDirect Required
Evans, M.D.D. & D. Rime (2016)

The sign switch effect of macroeconomic news in foreign exchange markets   ScienceDirect Required
Ben Omrane, W. & T. Savaser (2016)

Oil price shocks and exchange rate movements   ScienceDirect Required
Volkov, N.I. & K-H. Yuhn (2016)

Strong sterling pound and weak European currencies in the crises: Evidence from covered interest parity of secured rates   ScienceDirect Required
Fukuda, S-I. (2016)

The Role of Non-Traded Goods in Current Account and Exchange Rate Determination: A DSGE Analysis   Acrobat Required
Makanza, C.S. (2016)

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Exchange Rate Determination (Real)

Was it Real? The Exchange Rate-Interest Differential Relation Over the Modern Floating-Rate Period   Recommended!   JSTOR Required
Meese, R. & K. Rogoff (1988)

Abstract: In this paper, we explore the relationship between real exchange rates and real interest rate differentials in the United States, Germany, Japan, and the United Kingdom. Contrary to theories based on the joint hypothesis that domestic prices are sticky and monetary disturbances are predominant, we find little evidence of a stable relationship between real interest rates and real exchange rates. We consider both in-sample and out-of-sample tests. One hypothesis that is consistent with our findings is that real disturbances (such as productivity shocks) may be a major source of exchange rate volatility.

A Century of Purchasing Power Parity
Taylor, A.M. (2000)

PPP and the Balassa Samuelson Effect - The Role of the Distribution Sector
MacDonald, R. & L.A. Ricci (2001)

Border Effects within the NAFTA Countries
Rogers, J.H. & H.P. Smith (2001)

Interpreting Real Exchange Rate Movements in Transition Countries | Published   ScienceDirect Required
De Broeck, M. & T. Slok (2001/06)

Market Integration and Convergence to the Law of One Price: Evidence from the European Car Market | Published   Recommended!   ScienceDirect Required
Goldberg, P.K. & F. Verboven (2001)

Abstract: This paper exploits the unique case of European market integration to investigate the relationship between integration and price convergence in international markets. Using a panel data set of car prices, we examine how the process of integration has affected cross-country price dispersion in Europe. We find surprisingly strong evidence of convergence towards both the absolute and the relative versions of the Law of One Price (LOOP). Our analysis illuminates the main sources of segmentation in international markets and suggests the type of institutional changes that can successfully reduce it.

Purchasing Power Parity and Interest Parity in the Laboratory   Acrobat Required
Fisher, E. (2001)

Supply Shocks and Real Exchange Rates | Published   Acrobat Required
Alexius, A. (2001)

New multi-country evidence on purchasing power parity   Acrobat Required
J.J.J. Groen (2001)

The Law of One Price Over 700 Years
Rogoff, K., K.A. Froot & M. Kim (2001)

An Unbiased Appraisal of Purchasing Power Parity | Published
Cashin, P.A. & C.J. McDermott (2001)

Determinants of the euro real effective exchange rate: a BEER/PEER approach   Acrobat Required!
Maeso-Fernandez, F., C. Osbat & B. Schnatz (2001)

Sources of Euro Real Exchange Rate Fluctuations: What Is Behind the Euro Weakness in 1999-2000?   Acrobat Required!
Döpke, J., J. Gottschalk & C. Kamps (2001)

World-Wide Purchasing Power Parity   Acrobat Required!
Jacobson, T. & M. Nessen (2001)

PPP May not Hold After all: A Further Investigation   Acrobat Required!
Ng, S. & P. Perron (2001)

A New Look at Panel Testing of Stationarity and the PPP Hypothesis   Acrobat Required!
Bai, J. & S. Ng (2001)

PPP and the real exchange rate-real interest rate differential puzzle revisited: evidence from non-stationary panel data   Acrobat Required
Chortareas, G.E. & R.L. Driver (2001)

A Bayesian analysis of the PPP puzzle using an unobserved components model   Acrobat Required!
Kleijn, R.H. & H.K. Van Dijk (2001)

Purchasing Power Parity and New Trade Theory
Macdonald, R. & L.A. Ricci (2002)

A Bayesian Analysis of the PPP Puzzle using an Unobserved Components Model   Acrobat Required!
Kleijn, R. & H. K. van Dijk (2002)

A simple test for PPP among traded goods   Acrobat Required!
Franses, P.H. & D.J. van Dijk (2002)

Real Exchange Rates in the Long and Short Run: A Panel Co-Integration Approach   Acrobat Required!
Calderón, C. (2002)

Testing for PPP: Should We Use Panel Methods?   Adobe Acrobat Required!
Banerjee, A. & M. Marcellino & C. Osbat (2002)

How does the world interest rate affect the real exchange rate?   Adobe Acrobat Required!
Gente, K. (2002)

Beyond Burgernomics and MacParity: Exchange Rate Forecasts Based on the Law of One Price   Adobe Acrobat Required!
Lutz, M. (2002)

Inflation, Exchange Rates and PPP in a Multivariate Panel Cointegration Model   Adobe Acrobat Required!
Jacobson, T., J. Lyhagen, R. Larsson & M. Nessén (2002)

External Wealth, the Trade Balance, and the Real Exchange Rate
Lane, P. & G.M. Milesi-Ferretti (2002)

Current Account and Real Exchange Rate Dynamics in the G-7 Countries | Published   ScienceDirect Required
Chinn, Menzie & J. Lee (2002/06)

Price setting, price dispersion, and the value of money - or - The law of two prices   Adobe Acrobat Required
Curtis, E. & R. Wright (2002)

The Exchange Rate and Purchasing Power Parity: Extending the Theory and Tests | Published   ScienceDirect Required
Apte, P., P. Sercu & R. Uppal (2002)

The Real Exchange Rate Always Floats
Gylfason, T. (2002)

Does the Balassa-Samuelson Hypothesis Hold for Asian Countries? An Empirical Analysis using Panel Data Cointegration Tests   Adobe Acrobat Required
Drine, I. & C. Rault (2002)

Real Exchange Rates in Transition Economies   Acrobat Required
Jazbec, B. (2002)

Does the Purchasing Power Parity Hold Within the US?   Adobe Acrobat Required
Pedersen, M. (2002)

PPP Strikes Back: Aggregation and the Real Exchange Rate | Alternative | Published   Recommended!   Ingenta Select Required
Imbs, J, H. Mumtaz, M. Ravn & H. Rey (2003)

Abstract: We show the importance of a dynamic aggregation bias in accounting for the PPP puzzle. We prove that established time series and panel methods substantially exaggerate the persistence of real exchange rates because of heterogeneity in the dynamics of disaggregated relative prices. When heterogeneity is properly taken into account, estimates of the real exchange rate half-life fall dramatically, to little more than one year, or significantly below Rogoff's consensus view' of three to five years. We show corrected estimates are consistent with plausible nominal rigidities, thus, arguably, solving the puzzle. We also explain why traded goods prices account for the bulk of the persistence and volatility of the real exchange rate. The reason is that traded goods prices display dynamics that are more heterogeneous than non-traded ones.

Stock Markets and Real Exchange Rate: An Intertemporal Approach
Mercereau, B. (2003)

Forecasting the Dollar/Euro Exchange Rate: Can International Parities Help?   Acrobat Required
Sosvilla-Rivero, S. and Garcia, E. (2003)

Does Productivity Growth Lead to Appreciation of the Real Exchange Rate?
Lee, J. & M.K. Tang (2003)

The Real Exchange Rate in Small Open Developed Economies: Evidence from Cointegration Analysis   Adobe Acrobat Required
Bagchi, D., G.E. Chortareas & S.M. Miller (2003)

Short Memory and the PPP-puzzle | Published   Adobe Acrobat Required   ScienceDirect Required
Ryu, D. & M.A. El-Gamal (2003/06)

Countercyclical Trade Balance and Persistent Real Exchange Rates in a Neomonetarist Model   Adobe Acrobat Required
Zamulin, O. (2003)

Convergence to Purchasing Power Parity at the Commencement of the Euro   Adobe Acrobat Required
Lopez, C. & D.H. Papell (2003)

A Prism into the PPP Puzzles: The Micro-foundations of Big Mac Real Exchange Rates | Published   Wiley Interscience Required
Parsley, D.C. & S-J. Wei (2003/07)

Commodity Currencies and the Real Exchange Rate   Adobe Acrobat Required
Cashin, P., L.F. Céspedes & R. Sahay (2003)

A re-examination of the Purchasing Power Parity using non-stationary dynamic panel methods : a comparative approach for developing and developed countries   Adobe Acrobat Required
Drine, I. & C. Rault (2003)

On the long-run determinants of real exchange rates for developing countries : Evidence from Africa, Latin America and Asia   Adobe Acrobat Required
Drine, I. & C. Rault (2003)

Dissecting the PPP Puzzle: The Unconventional Roles of Nominal Exchange Rate and Price Adjustment | Published   ScienceDirect Required   Adobe Acrobat Required
Cheung, Y-W., K.S. Lai & M. Bergman (2003)

A Re-examination of the Link between Real Exchange Rates and Real Interest Rate Differentials   Adobe Acrobat Required
Hoffmann, M. & R. MacDonald (2003)

Does "Aggregation Bias" Explain the PPP Puzzle?
Chen, S-S. & C. Engel (2004)

Non-Parametric Tests of Real Exchange rates in the Post-Bretton Woods Era   Adobe Acrobat Required
Ahking, F.W. (2004)

The Modern Theory of the LOP and PPP: Some Implications   Adobe Acrobat Required
Pippenger, J. (2004)

Getting PPP Right: Identifying Mean Reverting Real Exchange Rates in Panels | Published   Acrobat Required   ScienceDirect Required
Chortareas. G. & G. Kapetanios (2004/08)

State of the Art Unit Root Tests and Purchasing Power Parity   Acrobat Required
Lopez, C., C.J. Murray & D.H. Papell (2004)

The Purchasing Power Parity Debate   Recommended!
Taylor, A.M. & M.P. Taylor (2004)

Abstract: Originally propounded by the sixteenth-century scholars of the University of Salamanca, the concept of purchasing power parity (PPP) was revived in the interwar period in the context of the debate concerning the appropriate level at which to re-establish international exchange rate parities. Broadly accepted as a long-run equilibrium condition in the post-war period, it was first advocated as a short-run equilibrium by many international economists in the first few years following the breakdown of the Bretton Woods system in the early 1970s and then increasingly came under attack on both theoretical and empirical grounds from the late 1970s to the mid 1990s. Accordingly, over the last three decades, a large literature has built up that examines how much the data deviated from theory, and the fruits of this research have provided a deeper understanding of how well PPP applies in both the short run and the long run. Since the mid 1990s, larger datasets and nonlinear econometric methods, in particular, have improved estimation. As deviations narrowed between real exchange rates and PPP, so did the gap narrow between theory and data, and some degree of confidence in long-run PPP began to emerge again. In this respect, the idea of long-run PPP now enjoys perhaps its strongest support in more than thirty years, a distinct reversion in economic thought.

Unbiased Estimation of the Half-Life to PPP Convergence in Panel Data
Choi, C-Y., N. Mark & D. Sul (2004)

Parity Reversion in Real Exchange Rates: Fast, Slow or Not at All? | Published
Cashin, P.A. & C.J. McDermott (2004/06)

The Long-Run Volatility Puzzle of the Real Exchange Rate
Hausmann, R., U. Panizza & R. Rigobon (2004)

Testing for Long Run Relative PPP in Europe   Acrobat Required
Coakley, J. & S. Snaith (2004)

Real Exchange Rates in Developing Countries: Are Balassa-Samuelson Effects Present? | Published
Choudhri, E.U. & M.S. Khan (2004/05)

International Deviations from the Law of One Price: The Role of Search Frictions and Market Share   Wiley Interscience Required
Alessandria, G. (2004)

Panel Data Tests Of Ppp: A Critical Overview   Adobe Acrobat Required
Caporale, G.M. & M. Cerrato (2004)

PPP rules, macroeconomic (In)stability and learning | Published   Wiley Interscience Required
Zanna, L-F. (2004/09)

The determination of the equilibrium exchange rate in a simple general equilibrium model   Acrobat Required
Van, C.L., C. Couharde & T.B. Luong (2004)

Estimating an equilibrium exchange rate for the dollar and other key currencies   ScienceDirect Required
Hughes Hallett, A. & C. Richter (2004)

The European Union currencies and the US dollar: from post-Bretton-Woods to the Euro   ScienceDirect Required
Gadea, M-D., A. Montañés & M. Reyes (2004)

The Purchasing Power Parity Debate   Ingenta Select Required
Taylor, A.M. & M.P. Taylor (2004)

Taylor Rules and the Deutschmark-Dollar Real Exchange Rate
Engel, C. & K.D. West (2004)

Real exchange rates and the relative prices of non-traded and traded goods: an empirical analysis   Acrobat Required
Groen, J.J.J. & C. Lombardelli (2004)

How Puzzling is the PPP Puzzle? An Alternative Half-Life Measure of Convergence to PPP   Acrobat Required
Chortareas, G. & G. Kapetanios (2004)

The purchasing power parity puzzle, temporal aggregation, and half-life estimation   ScienceDirect Required
Chambers, M.J. (2005)

Real Exchange Rate and Consumption Fluctuations following Trade Liberalization   Acrobat Required
Jonsson, K. (2004)

Trade Costs and Real Exchange Rate Volatility: The Role of Ricardian Comparative Advantage
Bravo-Ortega, C. & J. di Giovanni (2005)

Higher Power Tests for Bilateral Failure of PPP after 1973   Acrobat Required
Elliott, G. & E. Pesavento (2004)

Changing Monetary Policy Rules, Learning, and Real Exchange Rate Dynamics
Mark, N.C. (2005)

Real exchange rates and switching regimes   ScienceDirect Required
Bergman, U.M. & J. Hansson (2005)

A Nonparametric Measure of Convergence Toward Purchasing Power Parity   Acrobat Required
Shintani, M. (2005)

Purchasing power parity and the theory of general relativity: The first tests   Recommended!   ScienceDirect Required
Coakley, J., R.P. Flood, A.M. Fuertes & M.P. Taylor

Abstract: We implement novel tests of general relative purchasing power parity (PPP), defined as a long-run unit elasticity of the nominal exchange rate with respect to relative national prices, allowing for potentially permanent real exchange rate shocks. The finite-sample properties of the estimators used are analyzed through Monte Carlo analysis, allowing for country heterogeneity, cross-sectional dependence and non-stationary disturbances. Application to panel data sets of industrialized and developing economies reveals that inflation differentials are on average reflected one-for-one in long-run nominal exchange rate depreciation—i.e. that general relative PPP holds.

The Transfer Problem Revisited: Net Foreign Assets and Real Exchange Rates   Ingenta Select Required
Lane, P.R. & G.M. Milesi-Ferretti (2005)

An oversimplified inquiry into the sources of exchange rate variability   ScienceDirect Required
Kempa, B. (2005)

Nominal rigidity, desired markup variations, and real exchange rate persistence   ScienceDirect Required
Bouakez, H. (2005)

New Rates from New Weights | Published
Bayoumi, T.A., J. Lee & S. Jayanthi (2005/06)

The PPP debate: Price matters!   ScienceDirect Required
Coakley, J., N. Kellard & S. Snaith (2005)

Joint Tests for Non-linearity and Long Memory: The Case of Purchasing Power Parity
Smallwood, A.D. (2005)

Monetary Shocks and Real Exchange Rate Dynamics: a Reappraisal   Wiley Interscience Required
Hairault, J-O. & T. Sopraseuth (2005)

A Primer on Real Effective Exchange Rates: Determinants, Overvaluation, Trade Flows and Competitive Devaluation
Chinn, M.D. (2005)

Productivity Bias Hypothesis and The Purchasing Power Parity: a review article   Wiley Interscience Required   SURVEY PAPER
Bahmani-Oskooee, M. & A.B.M. Nasir (2005)

Demand and Distance: Evidence on Cross-Border Shopping
Asplund, M., R. Friberg & F. Wilander (2005)

Real Exchange Rate Misalignment: A Panel Co-Integration and Common Factor Analysis
Dufrenot, G.J. & E.B. Yehoue (2005)

Testing long-run purchasing power parity under exchange rate targeting   ScienceDirect Required
Brissimis, S.N., D.A. Sideris & F.K. Voumvaki (2005)

"Aggregation Bias" DOES Explain the PPP Puzzle
Imbs, J., H. Mumtaz, M.O. Ravn & H. Rey (2005)

Real Exchange Rate Overshooting RBC Style   Acrobat Required
Sofat, P., P. Minford, E. Nowell & D. Meenagh (2005)

Nominal Exchange Rate Flexibility and Real Exchange Rate Adjustment: Evidence from Dual Exchange Rates in Developing Countries
Cheung, Y-W. & K.S. Lai (2005)

Investigating the threshold effects of inflation on PPP   ScienceDirect Required
Ho, T-W. (2005)

Just how Undervalued is the Chinese Renminbi   Acrobat Required
Funke, M. & J. Rahn (2005)

Do Dollar Forecasters Believe too Much in PPP?   Adobe Acrobat Required
Menkhoff, L., R. Rafael & M. Schröder (2005)

Real Exchange Rate Volatility and the Price of Nontradables in Sudden-Stop-Prone Economies
Mendoza, E.G. (2005)

The Importance of Nontradable Goods' Prices in Cyclical Real Exchange Rate Fluctuations
Burstein, A., M. Eichenbaum & S. Rebelo (2005)

Are Real Exchange Rates Nonlinear or Nonstationary? Evidence from a New Threshold Unit Root Test
Basci, E. & M. Caner (2005)

The Triple-Parity Law   Adobe Acrobat Required
Lambelet, J-C. & A. Mihailov (2005)

Testing Linearity in Cointegrating Relations with an Application to Purchasing Power Parity   Adobe Acrobat Required
Hong, S.H. & P.C.B. Phillips (2005)

Purchasing Power Parity and Heterogeneous Mean Reversion | Published   ScienceDirect Required
Koedijk, C.G., B. Tims & M.A. van Dijk (2006/11)

Nonlinear PPP Under the Gold Standard   Acrobat Required
Paya, I. & D.A. Peel (2006)

The Purchasing Power Parity Persistence Paradigm: Evidence from Black Currency Markets   Acrobat Required
Cerrato, M., N. Kellard & N. Sarantis (2005)

Testing for Purchasing Power Parity Under a Target Zone Exchange Rate Regime   Acrobat Required
Miller, J.I. (2006)

Reconsidering Real Interest Parity for Traded and Nontraded Goods   Wiley Interscience Required
Kim, J. (2006)

Fundamentals and exchange rate volatility   Acrobat Required
Bleaney, M. (2006)

Co-integrating currencies and yield differentials   ScienceDirect Required
Inci, A.C. (2006)

International financial integration through the law of one price
Schmukler, S.L., E. Levy Yeyati & N. Van Horen (2006)

Pairwise Tests of Purchasing Power Parity Using Aggregate and Disaggregate Price Measures   Acrobat Required
Pesaran, M.H., R.P. Smith, T. Yamagata & L. Hvozdyk (2006)

The Contribution of Growth and Interest Rate Differentials to the Persistence of Real Exchange Rates   Acrobat Required
Malliaropulos, D., E. Panopoulou, N. Pittis & T. Pantelidis (2006)

Equilibrium Exchange Rates in Transition Economies: Taking Stock of the Issues   Acrobat Required
Égert, B., L. Halpern & R. MacDonald (2006)

Structural Breaks in the Real Exchange Rate Adjustment Mechanism   Acrobat Required
Copeland, L. & S. Heravi (2006)

Real Exchange Rate Volatility and Asset Market Structure   Acrobat Required
Thoenissen, C. (2006)

Euro-Dollar Real Exchange Rate Dynamics in an Estimated Two-Country Model: What Is Important and What Is Not | Published   ScienceDirect Required
Rabanal, P & V. Tuesta (2006/10)

An alternative test of purchasing power parity   ScienceDirect Required
Wallace, F.H. & G.L. Shelley (2006)

Can Firms’ Location Decisions Counteract the Balassa-Samuelson Effect?
Mejean, I. (2006)

On the Equality of Real Interest Rates across Borders in Integrated Capital Markets
Minford, P. & D.A. Peel (2006)

Persistence in Law-Of-One-Price Deviations: Evidence from Micro-Data | Published   Acrobat Required   ScienceDirect Required
Crucini, M.J. & M. Shintani (2006/08)

The behaviour of the real exchange rate: evidence from regression quantiles | Published   Acrobat Required   ScienceDirect Required
Nikolaou, K. (2006/08)

A reappraisal of the evidence on PPP: a systematic investigation into MA roots in panel unit root tests and their implications   Acrobat Required
Fischer, C. & D. Porath (2006)

Real Exchange Rate Dynamics With Endogenous Distribution Costs   Adobe Acrobat Required
Mulraine, M.L.B. (2006)

Cointegration Tests of PPP: Do they also Exhibit Erratic Behaviour?   Acrobat Required
Caporale, G.M. & C. Hanck (2006)

Testing Real Interest Parity in Emerging Markets
Singh, M. & A. Banerjee (2006)

Can the Law of One Price be tested?   Acrobat Required
Philip, K. (2006)

International asset markets and real exchange rate volatility | Published   ScienceDirect Required
Bodenstein, M. (2006/08)

Real equilibrium exchange rates: A panel data approach for advanced and emerging economies   Acrobat Required
Villavicencio, A.L. (2006)

Is Reversion to PPP in Euro Exchange Rates Non-Linear?   Acrobat Required
Schnatz, B. (2006)

Does Productivity Growth Appreciate the Real Exchange Rate?   Wiley Interscience Required
Lee, J. & Tang M-K. (2007)

Pricing to Habits and the Law of One Price
Ravn, M.O., S. Schmitt-Grohé & M. Uribe (2007)

Purchasing power parity and country characteristics: Evidence from panel data tests   ScienceDirect Required
Alba, J.D. & D.H. Papell (2007)

Does the real interest parity hypothesis hold? Evidence for developed and emerging markets   ScienceDirect Required
Ferreira, A.L. & M.A. León-Ledesma (2007)

Foreign Exchange Intervention and Equilibrium Real Exchange Rates | Published   Acrobat Required   ScienceDirect Required
Sideris, D.S. (2007/08)

Household Heterogeneity and Real Exchange Rates   Wiley Interscience Required
Kocherlakota, N.R. & L. Pistaferri (2007)

The Law of One Price: Nonlinearities in Sectoral Real Exchange Rate Dynamics   Acrobat Required
Juvenal, L. & M.P. Taylor (2007)

The behaviour of the real exchange rate: Evidence from regression quantiles   Acrobat Required
Nikolaou, K. (2007)

Capturing asymmetry in real exchange rate with quantile autoregression   Acrobat Required
Ferreira, M.S. (2007)

A Framework for Identifying the Sources of Local-Currency Price Stability with an Empirical Application
Goldberg, P.K. & R. Hellerstein (2007)

Fertility and the Real Exchange Rate
Rose, A.K. & S. Supaat (2007)

Purchasing Power Parity for Developing and Developed Countries: What Can We Learn from Non-Stationary Panel Data Models? | Published   Acrobat Required   Wiley Interscience Required   SURVEY PAPER
Drine, I. & C. Rault (2007/08)

Uncover Latent PPP by Dynamic Factor Error Correction Model (DF-ECM) Approach: Evidence from five OECD countries   Acrobat Required
Qin, D. (2007)

Does Purchasing Power Parity Hold Sometimes? Regime Switching in Real Exchange Rates   Acrobat Required
Lee, H-T. & G. Yoon (2007)

International investment positions and exchange rate dynamics: a dynamic panel analysis   Acrobat Required
Binder, M. & C.J. Offermanns (2007)

International asset pricing under segmentation and PPP deviations   ScienceDirect Required
Chaieb, I. & V. Errunza (2007)

Do Internet Converge Prices to the "Law of One Price"? Evidence from Transaction Data for Airline Tickets   Acrobat Required
Sengupta, A. (2007)

Real exchange rates, imperfect substitutability, and imperfect competition   ScienceDirect Required
MacDonald, R. & L.A. Ricci (2007)

Financial Market Integration and World Economic Stabilization toward Purchasing Power Parity   Acrobat Required
Okimoto, T. & K. Shimotsu (2007)

The Relative Price of Non-traded Goods in an Imperfectly Competitive Economy: Empirical Evidence for G7 Countries   Acrobat Required
Coto-Martinez, J. & J. Reboredo (2007)

Does the Nominal Exchange Rate Regime Affect the Long Run Properties of Real Exchange Rates?   Acrobat Required
Dreger, C. & E. Girardin (2007)

Testing for Purchasing Power Parity in Cointegrated Panels
Carlsson, M., J. Lyhagen & P. Österholm (2007)

Equilibrium Exchange Rates: Assessment Methodologies
Isard, P. (2007)

Real interest parity (RIP) over the 20th century: New evidence based on confidence intervals for the largest root and the half-life   ScienceDirect Required
Sekioua, S.H. (2008)

Real Exchange Rates and Fundamentals: A Cross-Country Perspective
Ricci, L.A., G.M. Milesi-Ferretti & J. Lee (2008)

The PPP Puzzle: What the Data Tell when Allowed to Speak Freely   Acrobat Required
Juselius, K. (2008)

Volatile and persistent real exchange rates with or without sticky prices   ScienceDirect Required
Moore, M.J. & M.J. Roche (2008)

The black market exchange rate vs. the official rate in testing PPP: Which rate fosters the adjustment process?   ScienceDirect Required
Bahmani-Oskooee, M. & A. Tankui (2008)

The Real Exchange Rate, Mercantilism and the Learning by Doing Externality
Aizenman, J. & J. Lee (2008)

U.S. dollar real exchange rates: Nonlinearity revisited   ScienceDirect Required
Sollis, R. (2008)

A revisit on dissecting the PPP puzzle: Evidence from a nonlinear approach   ScienceDirect Required
Wu, J-L. & P-F. Chen (2008)

Nonlinearities or outliers in real exchange rates?   ScienceDirect Required
Villavicencio, A.L. (2008)

How Robust are Estimated Equilibrium Exchange Rates? A Panel BEER Approach
Benassy-Quere, A., S. Bereau & V. Mignon (2008)

Non-linearity versus non-normality in real exchange rate dynamics   ScienceDirect Required
Arghyrou, M.G. & A. Gregoriou (2008)

Bivariate Assessments of Real Exchange Rates Using PPP Data
Zalduendo, J. (2008)

Persistent Real Exchange Rates   Acrobat Required
Johri, A. & A. Lahiri (2008)

The Composition of Government Spending and the Real Exchange Rate
Galstyan, V.A. & P.R. Lane (2008)

Skill Upgrading and the Real Exchange Rate   Acrobat Required
Alvarez, R. & R. Lopez (2008)

Some pitfalls in testing the law of one price in commodity markets   ScienceDirect Required
Pippenger, J. & L. Phillips (2008)

Long-run PPP in a system context: No favorable evidence after all for the U.S., Germany, and Japan   ScienceDirect Required
Cushman, D.O. (2008)

Cointegration Tests of Purchasing Power Parity
Wallace, F., R. Lozano Cortés & L.F. Cabrera-Castellanos (2008)

Threshold adjustment in deviations from the law of one price   Acrobat Required
Juvenal, L. & M.P. Taylor (2008)

Local Costs of Distribution, International Trade Costs and Micro Evidence on the Law of One Price
Giri, R. (2008)

Median-Unbiased Estimation in DF-GLS Regressions and the PPP Puzzle   Acrobat Required
Lopez, C., C.J. Murray & D.H. Papell (2008)

Foreign Exchange Market Volatility Information: an investigation of real-dollar exchange rate   Acrobat Required
Gomes, F.P., M.Y. Takami & V.R. Brandi (2008)

Regional Mc Parity: Do Common Pricing Points Reduce Deviations From the Law of One Price?
Mathä, T.Y. (2008)

Nontraded Goods, Market Segmentation, and Exchange Rates | Published   Acrobat Required   ScienceDirect Required
Dotsey, M. & M. Duarte (2008)

Real Exchange Rate Movements and the Relative Price of Non-traded Goods
Betts, C.M. & T.J. Kehoe (2008)

Estimating exchange rate responsiveness to shocks   ScienceDirect Required
Narayan, P.K. (2008)

Aggregation and the PPP puzzle in a sticky-price model
Carvalho, C. & F. Nechio (2008)

A Resolution of the Purchasing Power Parity Puzzle: Imperfect Knowledge and Long Swings   Acrobat Required
Frydman, R., M.D. Goldberg, S. Johansen & K. Juselius (2008)

Net Foreign Assets, Productivity and Real Exchange Rates in Constrained Economies | Published   Acrobat Required   ScienceDirect Required
Christopoulos, D.K., K. Gente & M.A. Leon-Ledesma (2008/12)

Does the law of one price hold in international financial markets? Evidence from tick data | Published   ScienceDirect Required
Akram, Q.F., D. Rime & L. Sarno (2008/09)

Nonlinear Adjustment of the Real Exchange Rate Towards its Equilibrium Value: a Panel Smooth Transition Error Correction Modelling
Bereau, S., A.L. Villavicencio & V. Mignon (2008)

3-Regime symmetric STAR modeling and exchange rate reversion   Acrobat Required
Cerrato, M., H. Kim & R. MacDonald (2008)

Real rigidities and real exchange rate volatility   ScienceDirect Required
Craighead, W.D. (2009)

Nonlinear PPP Deviations: A Monte Carlo Investigation of Their Unconditional Half-Life
Lo, M.C. (2009)

Consumption and Real Exchange Rates in Professional Forecasts | Published   ScienceDirect Required
Devereux, M.B., G.W. Smith & J. Yetman (2009/12)

Nonlinear Adjustment in Law of One Price Deviations and Physical Characteristics of Goods   Wiley Interscience Required
Berka, M. (2009)

Estimating Exchange Rate Equations Using Estimated Expectations   Acrobat Required
Fair, Ray C. (2009)

Fiscal Shocks and The Real Exchange Rate   Acrobat Required
Bénétrix, A.S. & P.R. Lane (2009)

The Law of One Price Without the Border: The Role of Distance Versus Sticky Prices | Published   Wiley Interscience Required
Crucini, M.J., M. Shintani & T. Tsuruga (2009/10)

Currency Misalignments and Optimal Monetary Policy: A Reexamination | Published
Engel, C. (2009)

Does higher openness cause more real exchange rate volatility?
Calderon, C. & M. Kubota (2009)

The real exchange rate in sticky-price models: does investment matter?   Acrobat Required
Martinez-Garcia, E. & J. Sondergaard (2009)

Productivity shocks and real exchange rates - a reappraisal   Acrobat Required
Peltonen, T.A. & M. Sager (2009)

A New Test of the Real Interest Rate Parity Hypothesis: Bounds Approach and Structural Breaks   Acrobat Required
Bagdatoglou. G. & A. Kontonikas (2009)

Real Exchange Rate Misalignments   Acrobat Required
Terra, C. & F. Valladares (2009)

Household Heterogeneity and the Real Exchange Rate: Still a Puzzle
Kollmann, R. (2009)

Empowering the IMF: Should Reform be a Requirement for Increasing the Fund's Resources?   Acrobat Required
Weisbrot, M., J. Cordero & L. Sandoval (2009)

The confusing time-series behaviour of real exchange rates: Are asymmetries important?   ScienceDirect Required
McMillan, D.G. (2009)

Purchasing Power Parity and Breaking Trend Functions in the Real Exchange Rate   Acrobat Required
Joya, J.O. (2009)

Real Exchange Rates and Time-Varying Trade Costs   Acrobat Required
Peel, D., I. Paya & E. Pavlidis (2009)

Nonlinearity and Persistence in PPP: Does Controlling for Nonlinearity Solve the PPP Puzzle?   Wiley Interscience Required
Kiliç, R. (2009)

Purchasing Power Parity in Less-Developed and Transition Economies: A Review Paper   Wiley Interscience Required   SURVEY PAPER
Bahmani-Oskooee, M. & S.W. Hegerty (2009)

The Real Exchange Rate as an Instrument of Development Policy   Acrobat Required
Razmi, R., M. Rapetti & P. Skott (2009)

Can Non-Linear Real Shocks Explain The Persistence of PPP Exchange Rate Disequilibria?   Acrobat Required
Peltonen, T.A., A. Popescu & M. Sager (2009)

The pass-through effect: a twofold analysis
Forte, A. (2009)

Government Purchases and the Real Exchange Rate
Kollmann, R. (2009)

Forecasting the Real Exchange Rate using a Long Span of Data. A Rematch: Linear vs Nonlinear   Acrobat Required
Peel, D., I. Paya & E. Pavlidis (2009)

Understanding forecast failure of ESTAR models of real exchange rates   Acrobat Required
Buncic, D. (2009)

Productivity, the Terms of Trade, and the Real Exchange Rate: The Balassa-Samuelson Hypothesis Revisited   Acrobat Required
Choudhri, E.U. & L.L. Schembri (2009)

Sources of exchange rate fluctuations: are they real or nominal?   Acrobat Required
Juvenal, L.
(2009)

A Century of Purchasing Power Parity Confirmed: The Role of Nonlinearity | Published   ScienceDirect Required
Kim, H. & Y-K. Moh (2009/10)

What Makes Currencies Volatile? An Empirical Investigation   Acrobat Required
Bleaney, M. & M. Francisco (2009)

One TV, One Price?
Imbs, J., H. Mumtaz, M.O. Ravn & H. Rey (2009)

Analyzing aggregate real exchange rate persistence through the lens of sectoral data | Published   Acrobat Required   ScienceDirect Required
Mayoral. L. & M.D. Gadea (2009/11)

Real exchange rates and real interest rate differentials: A present value interpretation   ScienceDirect Required
Hoffmann, M. & R. MacDonald (2009)

The dollar in the turmoil   ScienceDirect Required
Bénassy-Quéré, A., S. Béreau & V. Mignon (2009)

Reverse Shooting of Exchange Rates   Acrobat Required
Wang, P. (2009)

A model of international cities: implications for real exchange rates   Acrobat Required
Crucini, M.J. & H. Yilmazkuday (2009)

Do uncertainty and technology drive exchange rates?   Acrobat Required
Guerron-Quintana, P.A. (2009)

What do we know about real exchange rate non-linearities?   Acrobat Required
Kruse, R., M. Frömmel, L. Menkhoff & P. Sibbertsen (2009)

International Financial Integration and Real Exchange Rate Long-Run Dynamics in Emerging Countries: Some Panel Evidence   Acrobat Required
Caporale, G.M., T.H. Amor & C. Rault (2009)

The Micro-Macro Disconnect of Purchasing Power Parity
Bergin, P.R., R. Glick & J-L. Wu (2009)

Productive Government Purchases and the Real Exchange Rate   Acrobat Required
Basu, P. & R. Kollmann (2010)

Real exchange rate dynamics in the presence of non-traded goods and transaction costs   ScienceDirect Required
Lee, I. & J. Shin (2010)

Methodological advances in the assessment of equilibrium exchange rates   Acrobat Required
Bussière, M., M. Ca’ Zorzi, A. Chudík & A. Dieppe (2010)

A Model of the Exchange Rate with Informational Frictions
Martínez-García, E. (2010)

Local persistence and the PPP hypothesis   ScienceDirect Required
Kim, S. & L.R. Lima (2010)

The Harrod-Balassa-Samuelson Hypothesis: Real Exchange Rates and their Long-Run Equilibrium | Published   Wiley Interscience Required
Chong, Y., O. Jorda & A.M. Taylor (2010/12)

Fiscal Policy, the Real Exchange Rate and Traded Goods   Wiley Interscience Required
Monacelli, T. & R. Perotti (2010)

Investigating nonlinearities in real exchange rate adjustment: Threshold cointegration and the dynamics of exchange rates and relative prices   ScienceDirect Required
Nakagawa, H. (2010)

How well does nonlinear mean reversion solve the PPP puzzle?   ScienceDirect Required
Norman, S. (2010)

The Harrod-Balassa-Samuelson Hypothesis: Real Exchange Rates and their Long-Run Equilibrium
Chong, Y., O. Jordà & A.M. Taylor (2010)

Decline in the persistence of real exchange rates, but not sufficient for purchasing power parity   ScienceDirect Required
Okimoto, T. & K. Shimotsu (2010)

The Balassa-Samuelson Hypothesis Through the Lens of the Dependent Economy Model   Acrobat Required
Brock, P. (2010)

Purchasing power parity and the long memory properties of real exchange rates: Does one size fit all?   ScienceDirect Required
Aloy, M., M. Boutahar, Karine Gente & A. Péguin-Feissolle (2011)

Long-run purchasing power parity with asymmetric adjustment: Further evidence from nine transition countries   ScienceDirect Required
Chang, T. & H-W. Tzeng (2011)

Capital Flow Types, External Financing Needs, and Industrial Growth: 99 countries, 1991-2007
Aizenman, J. & V. Sushko (2011)

Temporal aggregation and purchasing power parity persistence   ScienceDirect Required
Ahmad, Y. & W.D. Craighead (2011)

Sources of exchange rate fluctuations: Are they real or nominal?   ScienceDirect Required
Juvenal, L. (2011)

Is the evidence for PPP reliable? A sustainability examination of the stationarity of real exchange rates   ScienceDirect Required
Zhou, S. & A.M. Kutan (2011)

Aggregation and the PPP Puzzle in a Sticky-Price Model
Carvalho, C. & F. Nechio (2011)

Home bias, distribution services and determinants of real exchange rates   ScienceDirect Required
Chaban, M. (2011)

Nonlinear trends in real exchange rates: A panel unit root test approach   ScienceDirect Required
Cushman, D.O. & N. Michael (2011)

Spatial panel data analysis with feasible GLS techniques: An application to the Chinese real exchange rate   ScienceDirect Required
Hall, S.G. & Q. Guo (2011)

Financial liberalization, structural change, and real exchange rate appreciations   ScienceDirect Required
Meza, F. & C. Urrutia (2011)

Accounting for Real Exchange Rates Using Micro-data
Crucini, M.J. & A. Landry (2012)

Microeconomic Sources of Real Exchange Rate Variability
Crucini, M.J. & C.I. Telmer (2012)

The PPP debate: Multiple breaks and cross-sectional dependence   ScienceDirect Required
Snaith, S. (2012)

Rational expectations, changing monetary policy rules, and real exchange rate dynamics   ScienceDirect Required
Chen, S-S. & Y-H. Chou (2012)

Real exchanges rates in commodity producing countries: A reappraisal   ScienceDirect Required
Bodart, V., B. Candelon & J.-F. Carpantier (2012)

Estimation of consistent multi-country FEERs   ScienceDirect Required
Carton, B. & K. Hervé (2012)

Examining the evidence of purchasing power parity by recursive mean adjustment   ScienceDirect Required
Kim, H. & Y-K. Moh (2012)

Correcting Real Exchange Rate Misalignment: Conceptual and Practical Issues
Eden, M. & H. Nguyen (2012)

Mussa Redux and Conditional PPP | Published   ScienceDirect Required
Bergin, P.R., R. Glick & J-L. Wu (2012/14)

Globalization, exports, and effective exchange rate indices   ScienceDirect Required
Ho, L.S. (2012)

Value-Added Exchange Rates
Bems, R. & R.C. Johnson (2012)

Can producer currency pricing models generate volatile real exchange rates?   ScienceDirect Required
Povoledo, L. (2012)

Product Introductions, Currency Unions, and the Real Exchange Rate
Cavallo, A., B. Neiman & R. Rigobon (2012)

History, Gravity and International Finance | Published   ScienceDirect Required
Chitu, L., B. Eichengreen & A.J. Mehl (2013/14)

Purchasing power parity and the Taylor rule   Acrobat Required
Ogaki, M., B.E. Hansen, I. Fujiwara & H. Kim (2013)

Understanding Long-run Price Dispersion | Published   ScienceDirect Required
Crucini, M.J. & H. Yilmazkuday (2013/14)

International Prices and Exchange Rates   SURVEY PAPER
Burstein, A. & G. Gopinath (2013)

Real exchange rate fluctuations and the relative importance of nontradables   ScienceDirect Required
Ouyang, A.Y. & R.S. Rajan (2013)

Exaggerated Death of Distance: Revisiting Distance Effects on Regional Price Dispersions   ScienceDirect Required
Kano, K., T. Kano & K. Takechi (2013)

The consumption-real exchange rate anomaly with extensive margins   ScienceDirect Required
Hamano, M. (2013)

How do currency misalignments' threshold affect economic growth?   ScienceDirect Required
Couharde, C. & A. Sallenave (2013)

Borders and Big Macs   ScienceDirect Required
Landry, A. (2013)

Testing Black Market vs. Official PPP: A Pooled Mean Group Estimation Approach   Acrobat Required
Goswami, G.G. & M.Z. Hossain (2013)

Do sticky prices increase real exchange rate volatility at the sector level?   ScienceDirect Required
Crucini, M.J., M. Shintani & T. Tsuruga (2013)

Estimating the Half-life of Theoretically Founded Real Exchange Rate Misalignments
Kubota, M. (2013)

Revisiting the Balassa-Samuelson Model with Markup Variations
Restout, R. (2013)

Roads and the Real Exchange Rate
Du, Q., S-J. Wei & P. Xie (2013)

Risk Sharing and Real Exchange Rate: The Roles of Non-tradable Sector and Trend Shocks
Akkoyun, H.C., Y. Arslan & M. Kilinc (2013)

Bond Market Co-movements, Expected Inflation and the GBP-USD Equilibrium Real Exchange Rate   ScienceDirect Required
Macchiarelli, C. (2013)

Firm Productivity, Exchange Rate Movements, Sources of Finance, and Export Orientation   ScienceDirect Required
Caglayan, M. & F. Demir (2013)

Real Exchange Rate Appreciation in Emerging Markets: Can Fiscal Policy Help?
Badia, M.M. & A. Segura-Ubiergo (2014)

Trade Intensity and Purchasing Power Parity   ScienceDirect Required
Cho, D. & A. Doblas-Madrid (2014)

The Harrod-Balassa-Samuelson effect and endogenous extensive margins   ScienceDirect Required
Hamano, M. (2014)

Persistence in real exchange rate convergence   De Gruyter Required
Stengos, T. & M.E. Yazgan (2014)

Real exchange rate dynamics in sticky wage models   ScienceDirect Required
Crucini, M.J., M. Shintani & T. Tsuruga (2014)

Real Exchange Rate and Productivity in a Specific-Factor Model with Skilled and Unskilled Labour   ScienceDirect Required
Doan, T.H.T. & K. Gente (2014)

Non-linear adjustments to intranational PPP   ScienceDirect Required
Woo, K-Y., S-K. Lee & A. Chan (2014)

Do Real Exchange Rate Appreciations Matter for Growth?   Acrobat Required
Bussière, M., C. Lopez & C. Tille (2014)

Through the Looking Glass: A WARPed View of Real Exchange Rate History   Acrobat Required
Campbell, D.L. & J.H. Pyun (2014)

Deconstructing shocks and persistence in OECD real exchange rates   De Gruyter Journals Required
Basher, S.A. & J.L. Carrion-i-Silvestre (2014)

Global Value Chains and Effective Exchange Rates at the Country-Sector Level
Patel, N., Z. Wang & S-J. Wei (2014)

Trying to Understand the PPPs in ICP2011: Why are the Results so Different?
Deaton, A. & B. Aten (2014)

Common Trends and Common Cycles in Oil Price and Real Exchange Rate   De Gruyter Journals Required
Basnet, H.C., P. Vatsa & S. Sharma (2014)

Can Monetary Policy Cause the Uncovered Interest Parity Puzzle?   Acrobat Required
Park, C. & S. Park (2014)

The Price of Development | Published   Acrobat Required   ScienceDirect Required
Hassan, F. (2014/16)

The Real Exchange Rate in the Long Run: Balassa-Samuelson Effects Reconsidered
Bordo, M.D., E.U. Choudhri, G. Fazio & R. MacDonald (2014)

Did Purchasing Power Parity Hold in Medieval Europe?
Bell, A.R., C. Brooks & T.K. Moore (2014)

Real Exchange Rate Persistence in US Dollar PPP Systems   Wiley Interscience Required
Crowder, W.J. (2014)

Real Financial Market Exchange Rates and Capital Flows | | Published   Acrobat Required   ScienceDirect Required
Gelman, M., A. Jochem, S. Reitz & M.P. Taylor (2014/15)

Real Exchange Rates and Sectoral Productivity in the Eurozone
Berka, M., M.B. Devereux & C. Engel (2014)

Monetary Policy and Real Exchange Rate Dynamics in Sticky-Price Models   Acrobat Required
de Carvalho, C.V. & F.F. Necchio (2014)

The Federal Reserve Engages the World (1970-2000): An Insider's Narrative of the Transition to Managed Floating and Financial Turbulence   Acrobat Required
Truman, E.M. (2014)

The Macroeconomics of a Financial Dutch Disease   Acrobat Required
Botta, A. (2014)

Imperfect mobility of labor across sectors: a reappraisal of the Balassa-Samuelson effect | Published   Acrobat Required   ScienceDirect Required
Cardi, O. & R. Restout (2014/15)

Inflation targeting and real exchange rates: A bias correction approach   ScienceDirect Required
Kim, J. (2014)

Versailles Redux? Eurozone Competitiveness in a Dynamic Balassa-Samuelson-Penn Framework   Acrobat Required
Stahler, K. & A. Subramanian (2014)

The Macroeconomics of a Financial Dutch Disease   Acrobat Required
Botta, A. (2014)

Foreign Technology Acquisition and Changes in the Real Exchange Rate   Acrobat Required
Alvarez, R. & R.A. Lopez (2014)

Phillips curve shocks and real exchange rate fluctuations: SVAR evidence   Acrobat Required
Gehrke, B. & F. Yao (2014)

A Nonparametric Study of Real Exchange Rate Persistence over a Century   Acrobat Required
Kim, H. & D. Ryu (2014)

Real exchange rates and fundamentals: robustness across alternative model specifications   Acrobat Required
Adler, K. & C. Grisse (2014)

Persistence of Current-account Disequilibria and Real Exchange-rate Misalignments   Wiley Interscience Required
Gnimassoun, B. & V. Mignon (2015)

Real Exchange Rate Determination and the China Puzzle   Acrobat Required
Tyers, R. & Y. Zhang (2014)

A pair-wise analysis of the law of one price: Evidence from the crude oil market   ScienceDirect Required
Giulietti, M., A.M. Iregui & J. Otero (2015)

Can international macroeconomic models explain low-frequency movements of real exchange rates? | Published   Acrobat Required   ScienceDirect Required
Rabanal, P. & J.F. Rubio-Ramirez (2015)

Inter-Temporal Purchasing Power Parity   SpringerLink Required
Breuer, J.B., V. Kumar & S.G. Suresh (2015)

Demand for Value Added and Value-Added Exchange Rates
Bems, R. & R.C. Johnson (2015)

Measuring the dollar-euro permanent equilibrium exchange rate using the unobserved components model   ScienceDirect Required
Chen, X. & R. MacDonald (2015)

PPP may hold better than you think: Smooth breaks and non-linear mean reversion in real effective exchange rates   ScienceDirect Required
Kutan, A.M. & S. Zhou (2015)

Testing for linear and nonlinear Granger causality in the real exchange rate-consumption relation   ScienceDirect Required
Pavlidis, E.G., I. Paya & D.A. Peel (2015)

Real exchange rate forecasting and ppp: this time the random walk loses   Acrobat Required
Ca'Zorzi, M., J. Muck & M. Rubaszek (2015)

Sources of Fluctuations in the Real Exchange Rates and Trade Balances of the G-7: A Sign Restriction VAR Approach   Wiley Interscience Required
Huh, H-S. & W.S. Kwon (2015)

Noisy information, distance and law of one price dynamics across US cities   ScienceDirect Required
Crucini, M.J., M. Shintani & T. Tsuruga (2015)

Real Exchange Rates and Commodity Prices   Acrobat Required
Nicolini, J., C. Hevia & J. Ayres (2015)

Price Indexes are a Problem for Testing PPP   Acrobat Required
Wallace, F. (2015)

Real exchange rate volatility and business cycles in emerging market economies   ScienceDirect Required
Gumus, I., Z.T. Taspinar (2015)

Exchange Rate Movements and the Distribution of Productivity   Wiley Interscience Required
Tomlin, B. & L. Fung (2015)

International Relative Prices: Evidence from Online Retailers in Seven Countries   Acrobat Required
Neiman, B. & A. Cavallo (2015)

Through the Looking Glass: A WARPed View of Real Exchange Rate History   Acrobat Required
Campbell, D.L. (2015)

Absolute purchasing power parity in industrial countries   Acrobat Required
Zhang, Z. & Z. Bian (2015)

The law of one price revisited: How do goods market frictions generate large and volatile price deviations? | Published   Acrobat Required   ScienceDirect Required
Lee, I. & S.S. Park (2015)

A Small Open Economy with the Balassa-Samuelson Effect   Acrobat Required
Ambrisko, R. (2015)

Real Exchange Rate Volatility and Imports of Intermediate Inputs: A Microeconometric Analysis of Manufacturing Plants   Wiley Interscience Required
López, R.A. & H.D. Nguyen (2015)

On the impact of volatility on the real exchange rate - terms of trade nexus: Revisiting commodity currencies   ScienceDirect Required
Coudert, V., C. Couharde & V. Mignon (2015)

Skilled Emigration, Wages and Real Exchange Rate in a Globalized World   Acrobat Required
Ouyang, A. & S. Paul (2015)

Accounting for real exchange rate changes at long time horizons   ScienceDirect Required
Chen, L-L., S. Choi & J. Devereux (2015)

Oil Prices and the Dynamics of Output and Real Exchange Rate   Acrobat Required
Meenagh, D., P. Minford & O. Oyekola (2015)

The Dynamics of the Trade Balance and the Real Exchange Rate: The J Curve and Trade Costs?   Acrobat Required
Choi, H. & G. Alessandria (2015)

The Determination of the Equilibrium Exchange Rates Based on a General Equilibrium Model   Acrobat Required
Li, W. (2015)

Why Are Exchange Rates So Smooth? A Segmented Asset Markets Explanation   Acrobat Required
Chien, Y., H. Lustig & K. Naknoi (2015)

Labor market flexibility and the real exchange rate   ScienceDirect Required
Du, Q. & Q. Liu (2015)

Sources of asymmetric shocks: The exchange rate or other culprits?   ScienceDirect Required
Skorepa, M. & L. Komarek (2015)

Parameter drifts, misspecification and the real exchange rate in emerging countries   ScienceDirect Required
Seoane, H.D. (2016)

Adoption of the Gold Standard and Real Exchange Rates in the Core and Periphery, 1870-1913   Wiley Interscience Required
Mollick, A.V. (2016)

Quantitative assessment of the role of incomplete asset markets on the dynamics of the real exchange rate   Acrobat Required
Martinez-Garcia, E. (2016)

Conditional PPP and Real Exchange Rate Convergence in the Euro Area
Bergin, P.R., R. Glick & J-L. Wu (2016)

Sovereign Defaults, Eexternal Debt, and Real Exchange Rate Dynamics
Asonuma, T. (2016)

Effective exchange rates, current accounts and global imbalances | Published   Acrobat Required
Beckmann, J. & R. Czudaj (2016/17)

Commonality and Heterogeneity in Real Effective Exchange Rates: Evidence from Advanced and Developing Countries   Acrobat Required
Nagayasu, J. (2016)

Exchange Rate Predictability and State-of-the-Art Models   Acrobat Required
Yesin, P. (2016)

Debt Thresholds and Real Exchange Rates: An Emerging Markets Perspective   Acrobat Required
Galstyan, V. & A. Velic (2016)

The 'Real' Explanation of the PPP Puzzle
Ford, N. & C.Y. Horioka (2016)

Barriers to price convergence   Acrobat Required
Glushenkova, M., A. Kourtellos & M. Zachariadis (2016)

Boom Goes the Price: Giant resource discoveries and real exchange rate appreciation   Acrobat Required
Harding, T., R. Stefanski & G. Toews (2016)

On the link between the US economic policy uncertainty and exchange rates   ScienceDirect Required
Kido, Y. (2016)

Current Account and Real Exchange Rate changes: the impact of trade openness   Acrobat Required
Romelli, D., C. Terra & E. Vasconcelos (2016)

Purchasing power parity in emerging markets: A panel stationary test with both sharp and smooth breaks   ScienceDirect Required
Bahmani-Oskooee, M., T. Chang & K-C. Lee (2016)

Estimating Currency Misalignment Using the Penn Effect: It's Not as Simple As It Looks
Cheung, Y-W., M. Chinn & X. Nong (2016)

The Balassa-Samuelson hypothesis in the developed and developing countries revisited   ScienceDirect Required
Wang, W., J. Xue & C. Du (2016)

Nonlinear Trend and Purchasing Power Parity   Acrobat Required
Luo, Y. (2016)

Real Exchange Rate Persistence and Country Characteristics   Acrobat Required
Curran, M. & A. Velic (2016)

Sovereign Risk and the Real Exchange Rate: A Non-Linear Approach   Acrobat Required
Ojeda-Joya, J.N. & G. Sarmiento (2016)

Debt thresholds and real exchange rates: An emerging markets perspective   ScienceDirect Required
Galstyan, V. & A. Velic (2016)

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Exchange Rate Policy

Can International Policy Coordination Be Counterproductive?   Recommended!   JSTOR Required
Rogoff, K. (1985)

Abstract: This paper demonstrates that increased international monetary cooperation may actually be counterproductive. The potential problem is that cooperation between central banks may exacerbate the credibility problem of central banks vis-a-vis the private sector. Coordinated monetary expansion yields a better output/inflation tradeoff than unilateral expansion because it does not induce exchange rate depreciation. Wage setters realize that the incentives to inflate are greater in a cooperative regime, and thus time-inconsistent nominal wage rates are higher. Cooperation does improve responses to disturbances. Thus, a cooperative regime which contains institutional constraints on systematic inflation is definitely superior.

Can International Policy Coordination Really Be Counterproductive?   Recommended!
Carraro, C. & F. Giavazzi (1988)

Abstract: This paper shows that international policy coordination is not counterproductive in a world where the incentive to run beggar-thy-neighbor policies internationally arises from the inefficiency that characterizes, within each country, the interaction between policymakers and private agents. The domestic inefficiency arises from the presence of nominal contracts that give central banks the power to affect real variables. In this setting we show that international cooperation belongs to the central banks' dominant strategy. The paper is motivated by a common and misleading interpretation of a paper by Rogolf `1985(, namely that international cooperation may be counterproductive in the presence of a domestic inefficiency.

Credibility of Policies Versus Credibility of Policymakers   Recommended!   JSTOR Required
Drazen, A. & P.R. Masson (1994)

Abstract: Standard models of policy credibility, defined as the expectation that an announced policy will be carried out, emphasize the preferences of the policymaker and the role of tough policies in signaling toughness and raising credibility. Whether a policy is carried out, however, will also reflect the state of the economy. We present a model in which a policymaker maintains a fixed parity in good times, but devalues if the unemployment rate gets too high. Our main conclusion is that if there is persistence in unemployment, observing a tough policy in a given period may lower rather than raise the credibility of a no-devaluation pledge in subsequent periods. We test this implication on EMS interest rates and find support for our hypothesis.

Does Foreign Exchange Market Intervention Signal Future Monetary Policy   Recommended!
Kaminsky, G.L. K.K. Lewis (1999)

Abstract: A frequently cited explanation for why foreign exchange interventions affect the exchange rate is that these interventions signal future monetary policy intentions. This explanation says that central banks signal a more contractionary monetary policy in the future by buying domestic currency today. Therefore, the expectations of future tighter monetary policy make the domestic currency appreciate, even though the current monetary effects of the intervention are typically offset by central banks. Of course, this explanation presumes that central banks in fact back up interventions with subsequent changes in monetary policy. In this paper, we empirically examine this presumption.

Fear of Floating | Published   Recommended!   Ingenta Select Required
Svensson, L.E.O. (2000)

Abstract: Many emerging market countries have suffered financial crises. One view blames soft pegs for these crises. Adherents of this view suggest that countries move to corner solutions - hard pegs or floating exchange rates. We analyze the behavior of exchange rates, reserves, and interest rates to assess whether there is evidence that country practice is moving toward corner solutions. We focus on whether countries that claim they are floating are indeed doing so. We find that countries that say they allow their exchange rate to float mostly do not - there seems to be an epidemic case of "fear of floating."

The Role of the Exhange Rate in Monetary Policy - the Experience of Other Countries   Acrobat Required
Artis, M. (1999)

Recent Thinking About Exchange Rate Determination and Policy   Acrobat Required
Krugman, P. (1999)

The Foreign Exchange Orgins of Japan's Economic Slump and Low Interest Liquidity Trap
McKinnon, R. & K. Ohno (2000)

An Interest Rate Defense of a Fixed Exchange Rate?   Acrobat Required
Flood, R. & O. Jeanne (2000)

Equilibrium Exchange Rate Policies: Complicit Renegotiation-Proof Outcomes
Mella-Barral, P. & P. Vitale (2001)

Abstract: Countries can repeatedly and opportunistically renegotiate the terms of agreements to which they can only complicitly assent. Therefore, when attempting to coordinate exchange rate policies, they continuously play partnership games. We develop a reduced form model of exchange rate management where, as a starting point, (a) sequences of discrete realignments and (b) shared intervention are desirable. We show that the implementation of the ex-ante optimal policy suffers from severe time-inconsistencies. We analyse the Stackelberg equilibria of the stochastic game played by partner countries. We find that equilibrium complicit renegotiation-proof policies are supported by net cross-country wealth transfers from the weaker to the stronger bargaining power country. Our theoretical results provide a game-theoretic interpretation of the evolution of monetary arrangements in Europe and the emergence of EMU.

Measures to Limit the Offshore Use of Currencies-Pros and Cons
Ishii, S., I. Otker-Robe & L. Cui (2001)

Optimal Exchange Rate Policy: The Influence of Price-Setting and Asset Markets   Acrobat Required
Engel, C. (2001)

On the Use of Local Currency When Less Inflationary Currencies are Available: An Overlapping Generations Model   Acrobat Required
Eden, B. (2001)

Official Intervention in the Foreign Exchange Market or, Bet Against the Central Bank   Acrobat Required
Taylor, D. (2001)

Monetary Implications of Cross-Border Derivatives for Emerging Economies
Morales, A. (2001)

Exchange Rate Risk Management: Evidence from East Asia
Allayannis, G., G.W. Brown & L.F. Klapper (2001)

On Commodity-Sensitive Currencies and Inflation Targeting
Clinton, K. (2001)

Living with Fear of Floating: An Optimal Policy Perspective
Lahiri, A. & C.A. Vegh (2001)

Financial Repression and Exchange Rate Management in Developing Countries: Theory and Empirical Evidence for India
Kletzer, K. & R. Kohli (2001)

Exchange Rate Exposure | Published   ScienceDirect Required
Dominguez, K.M.E. & L.L. Tesar (2001/05)

Exchange Rate Pass-through and Partial Dollarization: Is There a Link?   Acrobat Required
González, J.A. (2001)

International Transmission under Floating Exchange Rates   Acrobat Required
Lothian, J.R. & C.H. McCarthy (2001)

Exchange rate volatility and EURO area imports   Acrobat Required
Anderton, R., F. Skudelny (2001)

The Effects of Monetary Policy Shocks on Exchange Rates: A Structural Vector Error Correction Model Approach   Acrobat Required
Jang, K. & M. Ogaki (2001)

Policy Options for Joining the Euro   Acrobat Required
de Crombrugghe, A. (2001)

Dollarization of Liabilities in Non-tradable Goods Sector   Acrobat Required
Chabellard, F. (2001)

What Hurts Most? G-3 Exchange Rate or Interest Rate Volatility   Recommended!
Reinhart, C.M. & V.R. Reinhart (2001)

Abstract: With many emerging market currencies tied to the U.S. dollar either implicitly or explicitly, movements in the exchange values of the currencies of major countries have the potential to influence the competitive position of many developing countries. According to some analysts, establishing target bands to reduce the variability of the G-3 currencies would limit those destabilizing shocks emanating from abroad. This paper examines the argument for such a target zone strictly from an emerging market perspective. Given that sterilized intervention by industrial economies tends to be ineffective and that policy makers show no appetite to return to the controls on international capital flows that helped keep exchange rates stable over the Bretton Woods era, a commitment to damping G-3 exchange rate fluctuations requires a willingness on the part of G-3 authorities to use domestic monetary policy to that end. Under a system of target zones, then, relative prices for emerging market economies may become more stable, but debt-servicing costs may become less predictable. We use a simple trade model to show that the resulting consequences for welfare are ambiguous. Our empirical work supplements the traditional literature on North-South links by examining the importance of the volatilities of G-3 exchange-rates, and U.S. interest rate and consumption on capital flows and economic growth in developing countries over the past thirty years.

Banking and the political support for dollarization   Acrobat Required
Ennis, H.M. (2001)

Dollarization: An Irreversible Decision   Acrobat Required
Craine, R. (2001)

Is adopting Full Dollarization the solution? Looking at the evidence   Acrobat Required
Goldfajn, I. & G. Olivares (2001)

Dollarization and Economic Performance: An Empirical Investigation
Edwards, S. (2001)

Dollarization: A Primer   Recommended!   Adobe Acrobat Required
Levy-Yeyati, E. & F. Sturzenegger (2001)

Abstract: The purpose of this piece is not to settle the complex dollarization debate that hinges on country specific characteristics and, as such, can only be resolved, if ever, once sufficient dollarization experiences are in place to conduct a thorough comparison. Rather, here we intend to provide an impartial survey of the main issues associated with dollarization, and their most relevant empirical and analytical underpinnings, to contribute a framework that feeds into the more specific and detailed discussions undertaken in the following chapters. In doing so, we will try to distill a cohesive view whenever possible, emphasizing the historical determinants of the debate and the importance of the initial macroeconomic conditions in each particular country when judging the benefits and disadvantages of a full dollarization strategy.

Official Intervention in the Foreign Exchange Market: Is It Effective, and, If So, How Does It Work?   SURVEY PAPER
Taylor, M.P. & L. Sarno (2001)

Deposit Dollarization and the financial sector in emerging economies   Acrobat Required
Shi, A. (2002)

Dollarization: A Dead End
Izurieta, A. (2002)

Dollarization: Analytical Issues
Chang, R. & A. Velasco (2002)

A Fiscal Theory of the Currency Risk Premium and of Sterilized Intervention
Kumhof, M. & S. Van Nieuwerburgh (2002)

Nominal Exchange Rate Anchoring Under Inflation Inertia
Calvo, G.A., O. Celasun & M. Kumhof (2002)

How Valuable Is Exchange Rate Flexibility? Optimal Monetary Policy under Sectoral Shocks
Tille, C. (2002)

On the Distributional Effects of Exchange Rate Fluctuations | Published   ScienceDirect Required
Tille, C. (2002/06)

Dread of Depreciation: Measuring Real Exchange Rate Interventions
Dutta, J. (2002)

Expenditure Switching and Exchange Rate Policy
Engel, C. (2002)

Foreign Currency Pricing   Adobe Acrobat Required
Levina, I. & O. Zamulin (2002)

Unofficial Dollarization in Latin America: Currency Substitution, Network Externalities and Irreversibility   Acrobat Required
Feige, E.L., V. Šošiæ, M. Faulend & V. Šonje (2002)

Why Should Emerging Economies Give up National Currencies: A Case for 'Institutions Substitution'
Mendoza, E.G. (2002)

Dollarization and Economic Performance: What Do We Really Know?   Adobe Acrobat Required!
Edwards, S. & I.I. Magendzo (2002)

Optimal Exchange Rate Policy, Optimal Incomplete Taxation and Business Cycles   Acrobat Required
Cunha, A.B. (2002)

Global Implications of Self-Oriented National Monetary Rules | Published   Ingenta Select Required   Acrobat Required
Obstfeld, M. & K. Rogoff (2001/2002)

Real Exchange Rate Targeting and Macroeconomic Instability
Uribe, M. (2002)

Should government smooth exchange rate risk?   Adobe Acrobat Required
Goldfajn, I. & A. Silveira (2002)

Dollarization, Monetary Policy, and the Pass-Through
Ize, A. & E. Parrado (2002)

Exchange Rate Monitoring Bands: Theory and Policy | Alternative   Acrobat Required!
Corrado, L., M. Miller & L. Zhang (2002)

The Great Exchange Rate Debate After Argentina
Edwards, S. (2002)

A Currency of One's Own? An Empirical Investigation on Dollarization and Independent Currency Unions
Edwards, S. & I. Magendzo (2003)

Endogenous Deposit Dollarization
Broda, C. & E.L. Yeyati (2003)

Dollarization of Liabilities: Beyond the Usual Suspects
Barajas Estrada, A. & A. Morales (2003)

The Dynamics of Currency Substitution, Asset Substitution and De facto Dollarization and Euroization in Transition Countries   Adobe Acrobat Required
Feige, E.L. (2003)

Revisiting the Interest Rate-Exchange Rate Nexus: A Markov Switching Approach   Acrobat Required
Chen, S.S. (2003)

Identifying the Effects of Monetary Policy Shocks on Exchange Rates Using High Frequency Data
Faust, J., J.H. Rogers, E. Swanson & J.H. Wright (2003)

Twin Fallacies About Exchange Rate Policy in Emerging Markets
Reinhart, C.M. & V.R. Reinhart (2003)

Foreign Exchange Intervention in Developing and Transition Economies: Results of a Survey
Canales Kriljenko, J.I. (2003)

Intervention and Exchange Rate Stabilization Policy in Developing Countries   Wiley Interscience Required
Hutchison, M.M. (2003)

Strict Dollarization and Economic Performance: An Empirical Investigation
Edwards, S. & I. Magendzo (2003)

Overshooting and Dollarization in the Democratic in the Democratic Republic of the Congo   Acrobat Required
Beaugrand, P. (2003)

The East Asian Dollar Standard, Fear of Floating, and Original Sin   Acrobat Required
McKinnon, R. & G. Schnabl (2003)

Large Devaluations and the Real Exchange Rate | Alternative   Acrobat Required
Burstein, A., M. Eichenbaum & S. Rebelo (2003)

Monetary policy, foreign exchange intervention, and the exchange rate in a unifying framework   ScienceDirect Required
Kim, S. (2003)

When Do Central Bank Interventions Influence Intra-Daily and Longer-Term Exchange Rate Movements? | Published   ScienceDirect Required
Dominguez, K.M.E. (2003/06)

Dollarization, Inflation Volatility and Underdeveloped Financial Markets in Transition Economies   Acrobat Required
Piontkovsky, R. (2003)

Sticky Inflation and the Real Effects of Exchange Rate Based Stabilization | Published   ScienceDirect Required
Celasun, O. (2003/06)

Official Intervention in the Foreign Exchange Market: Elements of Best Practice
Canales Kriljenko, J.I., R. Guimaraes & C. Karacadag (2003)

Exploring the Implications of Official Dollarization on Macroeconomic Volatility   Adobe Acrobat Required
Duncan, R. (2003)

Dollarization of the Banking System: Good or Bad?
Honohan, P., A. Ize & G. De Nicolo (2003)

Financial Dollarization and Central Bank Credibility
Cowan, K. & Do Q-T (2003)

Economic Policy in the International Economy   Recommended!
Helpman, E. & E. Sadka (2003)

Abstract: This book contains fifteen major essays on international economics. The authors investigate five principal themes: theory, and empirics, of financial issues in open economies; economic growth; public economies; and political economy. Written to honor Professor Assaf Razin of Tel Aviv and Cornell Universities on the occasion of his sixtieth birthday, the essays pay close attention to policy issues as well as formal analysis. The contributors include renowned specialists in international economics based in North America, Europe, Israel, and China. This volume of cutting edge research will be of interest to scholars, policy makers, and advanced students alike.

Why Do Emerging Economies Borrow in Foreign Currency? | Alternative
Jeanne, O. (2003)

Addicted to Dollars
Reinhart, C.M., K.S. Rogoff & M.A. Savastano (2003)

The Trilemma in History: Tradeoffs among Exchange Rates, Monetary Policies,and Capital Mobility | Alternative | Published   Adobe Acrobat Required   Ingenta Select Required
Obstfeld, M.,J.C. Shambaugh & A.M. Taylor (2003/04/05)

The Travails of Current Macroeconomic and Exchange Rate Management in China: The Complications of Switching to a New Growth Engine   Adobe Acrobat Required
Woo, W.T. (2003)

Monetary policy's role in exchange rate behavior   ScienceDirect Required
Faust, J. & J.H. Rogers (2003)

Reuters News Reports versus Official Interventions: A Cautionary Warning   Acrobat Required
Fischer, A. (2003)

Optimal fear of floating: the role of currency mismatches and fiscal constraints | Alternative   Adobe Acrobat Required
Ganapolsky, E.J.J. (2003)

Financial Globalisation, Exchange Rates and Capital Controls in Developing Countries   Adobe Acrobat Required
Joshi, V. (2003)

Government intervention in the foreign exchange market   Acrobat Required   SURVEY PAPER
Humpage, O.F. (2003)

Is a transactions tax an effective means to stabilize the foreign exchange market?   Acrobat Required
Terzi, A. (2003)

Limited Arbitrage, Segmentation, and Investor Heterogeneity: Why the Law of One Price So Often Fails
Flynn, S.M. (2003)

The Gains from International Monetary Cooperation Revisited
Tchakarov, I. (2004)

Euro at Five: Ready for a Global Role?   Recommended!   CONFERENCE VOLUME
Various authors (2004)

Abstract: The euro so far has born the brunt of the dollar's recent decline, thus its value and its management will be key to the successful adjustment of international imbalances. And as a long-run competitor and collaborator with the dollar, the birth of the euro creates the potential for a bipolar international monetary system, offering policymakers unprecedented challenges and opportunities. At a recent Institute conference, senior staff and expert discussants explored the role of the euro.

Coping with Risk Through Mismatches: Domestic and International Financial Contracts for Emerging Economies
de la Torre, A. & S. Schmukler (2004)

Fear of Floating in East Asia   Acrobat Required
Kim, S., S.H. Kim & Y. Wang (2004)

Computing currency invariant indices with an application to minimum variance currency baskets   ScienceDirect Required
Hovanov, N.V., J.W. Kolari & M.V. Sokolov (2004)

Monetary Sovereignty, Exchange Rates, and Capital Controls: The Trilemma in the Interwar period
Obstfeld, M., J.C. Shambaugh & A.M. Taylor (2004)

Productivity Shocks and Delayed Exchange-Rate Overshooting   Acrobat Required
Pierdzioch, P. (2004)

Economic Integration, Sectoral Diversification, and Exchange Rate Policy in a Developing Economy
Srour, G. (2004)

Dollarization and currency exchange   ScienceDirect Required
Craig, B. & C.J. Waller (2004)

Balance Sheets, Exchange Rate Policy, and Welfare | Published   ScienceDirect Required
Elekdag, S. & I. Tchakarov (2004/07)

What Prompts Japan to Intervene in the Forex Market? A New Approach to a Reaction Function
Ito, T. & T. Yabu (2004)

The liquidity effects of foreign exchange intervention   ScienceDirect Required
Ho, W-M. (2004)

On the determinants of "small" and "large" foreign exchange market interventions: The case of the Japanese interventions in the 1990s   ScienceDirect Required
Frenkel, M., C. Pierdzioch & G. Stadtmann (2004)

Prudential Responses to De Facto Dollarization
Ize, A. & A. Powell (2004)

Optimal Currency Hedging | Published   Acrobat Required   ScienceDirect Required
Albuquerque, R. (2004/07)

Assessing Financial Vulnerability in Partially Dollarized Economies   Acrobat Required
Moron, E., J.F. Castro & D. Winkelried (2004)

Exchange-Rate Policy and the Zero Bound on Nominal Interest Rates | Published   Acrobat Required   Ingenta Select Required
Coenen, G. & V.W. Wieland (2004)

Adjusting China’s Exchange Rate Policies   Acrobat Required
Goldstein, M. (2004)

The Return to Soft Dollar Pegging in East Asia. Mitigating Conflicted Virtue   Acrobat Required
McKinnon, R. & G. Schnabl (2004)

An Assessment of the Case for Monetary Union or Official Dollarization in Argentina, Brazil, Chile, Uruguay and Venezuela   Acrobat Required
Hallwood, P., I.W. Marsh & J. Scheibe (2004)

Target Zone Interventions and Coordination of Expectations   Acrobat Required
Reitz, S., F. Westerhoff & C. Wieland (2004)

Credible Commitment to Optimal Escape from a Liquidity Trap: The Role of the Balance Sheet of an Independent Central Bank
Jeanne, O. & L.E.O. Svensson (2004)

Sterilization costs and exchange rate targeting   ScienceDirect Required
Kletzer, K. & M.M. Spiegel (2004)

Monetary policy in emerging markets: Can liability dollarization explain contractionary devaluations?   ScienceDirect Required
Cook, D. (2004)

Foreign exchange market intervention: implications of publicly announced and secret intervention for the euro exchange rate and its volatility   ScienceDirect Required
Brissimisa, S.N. & D.P. Chionis (2004)

Balance Sheets and Exchange Rate Policy   Ingenta Select Required
Cespedes, L.F., R. Chang & A. Velasco (2004)

Dollars, Debt and the IFIs: Dedollarizing Multilateral Lending   Adobe Acrobat Required
Levy Yeyati, E. (2004)

Exchange Rate and Inflation Dynamics in Dollarized Economies | Published   Adobe Acrobat Required   ScienceDirect Required
Carranza. L., J.E. Galdon-Sanchez & J.G. Biscarri (2004/09)

Models of foreign exchange intervention: Estimation and testing   Adobe Acrobat Required
Brown, B.W. & D.J. Hodgson (2004)

A simple theoretical framework for the analysis of liability dollarization   Adobe Acrobat Required
Heymann, D. & E. Kawamura (2004)

Financial Dollarization: Evaluating the consequences   Adobe Acrobat Required
Levy-Yeyati, E. (2004)

Exchange Rate Policy and Sovereign Bond Spreads in Developing Countries
Jahjah, S. & V.Z. Yue (2004)

Communication and Exchange Rate Policy | Published   Acrobat Required   ScienceDirect Required
Fratzscher, M. (2004/08)

Living with flexible exchange rates   Acrobat Required
Ho, C. & R.N. McCauley (2004)

A Risk Allocation Approach to Optimal Exchange Rate Policy   Acrobat Required
Mundaca, G.B. & J. Strand (2004)

Monitoring and Endogenous Financial Dollarization   ScienceDirect Required
Corrado, G. (2005)

Currency Boards and Productivity Growth   Acrobat Required
Canavese, A. (2004)

Labour market reform and the sustainability of exchange rate pegs   Acrobat Required
Castrén, O., T. Takalo & G. Wood (2004)

Official dollarization: a last resort solution to financial instability in Latin America?   Acrobat Required
Minda, A. (2005)

Fear of floating and domestic liability dollarization   ScienceDirect Required
Honig, A. (2005)

Exits from Heavily Managed Exchange Rate Regimes
Detragiache, E., A. Mody & E. ` (2005)

Other People's Money   Recommended!
Eichengreen, B. (2005)

Abstract: Episodes in countries as far-flung as Indonesia and Argentina have shown that exchange rate adjustments that would normally help to restore balance can be destabilizing, even catastrophic, for countries whose debts are denominated in foreign currencies. The contributors suggest that the problem is linked to the operation of international financial markets, which prevent countries from borrowing in their own currencies.

Rational Fear of Floating: A Simple Model of Exchange Rates and Income Distribution   Acrobat Required
Keiding, H. & M.J. Knudsen (2005)

Dollarization of bank deposits: Causes and consequences   ScienceDirect Required
De Nicoló, G., P. Honohan & A. Ize (2005)

On the Renminbi: The Choice between Adjustment under a Fixed Exchange Rate and Adjustment under a Flexible Rate
Frankel, J. (2005)

Friedman redux: Restricting monetary policy rules to support flexible exchange rates   ScienceDirect Required
Devereux, M.B., K. Shi & J. Xu (2005)

Exchange Rates under the East Asian Dollar Standard: Living with Conflicted Virtue
McKinnon, R.I. (2005)

The need for international policy coordination: what's old, what's new, what's yet to come?   ScienceDirect Required
Canzoneri, M.B., R.E. Cumby & B.T. Diba (2005)

Dollarization in Latin America: seigniorage costs and policy implications
Lange, C. & C. Sauer (2005)

Regime-switching in exchange rate policy and balance sheet effects
Fiess, N. & R. Shankar (2005)

Dollarization and trade   ScienceDirect Required
Klein, M.W. (2005)

Strategies of exchange rate policy in G3 economies   ScienceDirect Required
Fratzscher, M. (2005)

Explicit and Implicit Targets in Open Economies
Sgherri, S. (2005)

Can a Rapidly-Growing Export-Oriented Economy Smoothly Exit an Exchange Rate Peg? Lessons for China from Japan's High-Growth Era
Eichengreen, B. & M. Hatase (2005)

Managing Systemic Liquidity Risk in Financially Dollarized Economies
Ize, A., M.A. Kiguel & E. Levy Yeyati (2005)

Financial Dollarization Equilibria: A Framework for Policy Analysis
Ize, A. (2005)

Financial De-Dollarization: Is It for Real?
Ize, A. & E. Levy Yeyati (2005)

The Impact of FX Central Bank Intervention in a Noise Trading Framework | Published   ScienceDirect Required   Acrobat Required
De Grauwe, P., M. Grimaldi & M.A.R. Beine (2005/09)

Fear of Floating: An optimal discretionary monetary policy analysis   Acrobat Required
Bokil, M. (2005)

Financial Dollarization and the Size of the Fear   Acrobat Required Castro, J.F. & E. Morón (2005)

Currency Manipulation versus Current Account Manipulation   Acrobat Required
Cai, J. (2005)

How to Exit from Fixed Exchange Rate Regimes
Asici, A.A. & N. Ivanova & C. Wyplosz (2005)

Regime-Switching in Exchange Rate Policy and Balance Sheet Effects   ScienceDirect Required
Fiess, N. & R. Shankar (2005)

Exchange Rate Cointegration Across Central Bank Regime Shifts   ScienceDirect Required
Lopez, J.A. (2005)

Monetary Policy News and Exchange Rate Responses: Do Only Surprises Matter? | Published   Adobe Acrobat Required   ScienceDirect Required
Fatum, R. & B. Scholnick (2005/08)

Exchange Rate Targeting in a Small Open Economy   Acrobat Required
Nielsen, M.E.B. (2005)

Financial Dollarization in Latin America
Rennhack, R. & M. Nozaki (2006)

Toward an Effective Supervision of Partially Dollarized Banking Systems
Cayazzo, J., A.G. Pascual, E. Gutierrez & S. Heysen (2006)

How tight should one's hands be tied? Fear of floating and credibility of exchange regimes   Acrobat Required
López, J.R. & H.R. Mendizábal (2006)

Fear of Floating and Fear of Pegging: An Empirical Analysis of De Facto Exchange Rate Regimes in Developing Countries
von Hagen, J. & J. Zhou (2006)

Stabilization of Effective Exchange Rates Under Common Currency Basket Systems
Ogawa, E. & J. Shimizu (2006)

Expectations and Exchange Rate Policy
Devereux, M.D. & C. Engel (2006)

Expenditure Switching vs. Real Exchange Rate Stabilization: Competing Objectives for Exchange Rate Policy | Published   ScienceDirect Required
Devereux, M.D. & C. Engel (2006/07)

The Foreign Exchange Rate Exposure of Nations   Acrobat Required
Entorf,H., J. Moebert & K. Sonderhof (2006)

Central bank intervention and exchange rate volatility, its continuous and jump components   Acrobat Required
Beine, M., J. Lahaye, S. Laurent, C.J. Neely & F.C. Palm (2006)

Evaluating Foreign Exchange Market Intervention: Self-Selection, Counterfactuals and Average Treatment Effects | Published   Acrobat Required   ScienceDirect Required
Fatum, R. & M.M. Hutchison (2006/10)

Why Do Countries Peg the Way They Peg? The Determinants of Anchor Currency Choice | Published   Acrobat Required   ScienceDirect Required
Meissner, C.M. & N. Oomes (2006/09)

Optimal monetary policy in a regime-switching economy: the response to abrupt shifts in exchange rate dynamics   Acrobat Required
Zampolli, F. (2006)

Inflation Targeting in Dollarized Economies
Leiderman, L., R. Maino & E. Parrado (2006)

The Coordination Channel of Foreign Exchange Intervention | Published   Acrobat Required   ScienceDirect Required
Reitz, S. & M.P. Taylor (2006/08)

Authorities' beliefs about foreign exchange intervention: getting back under the hood | Published   Acrobat Required   ScienceDirect Required
Neely, C.J. (2006/08)

Passthrough Estimates and the Choice of an Exchange Rate Index   Wiley Interscience Required
Pollard, P.S. & C.C. Coughlin (2006)

Should central banks react to exchange rate movements? An analysis of the robustness of simple policy rules under exchange rate uncertainty   ScienceDirect Required
Wollmershäuser, T. (2006)

Why do Central Bankers Intervene in the Foreign Exchange Market? Some New Evidence and Theory   Acrobat Required
Guerron, P.A. (2006)

The Effect of a Transaction Tax on Exchange Rate Volatility   Acrobat Required
Lanne. M. & T. Vesalay (2006)

Foreign exchange market interventions as monetary policy   Adobe Acrobat Required
Post, E. (2006)

A Critical Appraisal of Recent Developments in the Analysis of Foreign Exchange Intervention
Vitale, P. (2006)

On the Credibility of Currency Boards   Wiley Interscience Required
Feuerstein, S. & O. Grimm (2006)

The Historical Origins of U.S. Exchange Market Intervention Policy
Bordo, M.D., O. Humpage & A.J. Schwartz (2006)

Devaluation without common knowledge   ScienceDirect Required
Rochon, C. (2006)

Dollarization and financial integration | Published   Acrobat Required   ScienceDirect Required
Arellano, C. & J. Heathcote (2007/10)

Exchange Rate Policy and Liability Dollarization: An Empirical Study
Berkmen, P & E.E. Cavallo (2007)

Currency Crises and Monetary Policy in Economies with Partial Dollarisation of Liabilities   Acrobat Required
Flaschel, P., C. Proano & W. Semmler (2007)

Talks, financial operations or both? Generalizing central banks’ FX reaction functions | Published   ScienceDirect Required   Acrobat Required
Bernal, O. & J-Y. Gnabo (2007/09)

Fed intervention, dollar appreciation, and systematic risk   ScienceDirect Required
Sweeney, R.J. (2007)

What prompts Japan to intervene in the Forex market? A new approach to a reaction function   ScienceDirect Required
Ito, T. & T. Yabu (2007)

"Optimal" inflation under dollarization   ScienceDirect Required
Kurasawa, K. & A.L. Marty (2007)

Solving Endogeneity in Assessing the Efficacy of Foreign Exchange Market Interventions   Acrobat Required
Park, S.G. (2006)

The Influence of Actual and Unrequited Interventions
Dominguez, K.M.E. & F. Panthaki (2007)

Dollarization and exchange rate fluctuations   Acrobat Required
Honohan, P. (2007)

Monetary Policy in an Equilibrium Portfolio Balance Model
Kumhof, M. & S. van Nieuwerburgh (2007)

Why China Should Keep Its Dollar Peg   Wiley Interscience Required
McKinnon, R. (2007)

Why China Should Abandon Its Dollar Peg   Wiley Interscience Required
Roubini, N. (2007)

Solving Endogeneity in Assessing the Efficacy of Foreign Exchange Market Interventions   Acrobat Required
Park, S.G. (2007)

Informative trading or just costly noise? An analysis of Central Bank interventions   ScienceDirect Required
Pasquariello, P. (2007)

Persistent Appreciations and Overshooting: A Normative Analysis
Caballero, R.J. & G. Lorenzoni (2007)

Optimal exchange rate policy in a low interest rate environment | Published   Acrobat Required   ScienceDirect Required
Pavasuthipaisit, R. (2007/09)

Optimal Monetary Policy with Vertical Production and Trade   Wiley Interscience Required
Shi, K. & J. Xu (2007)

Fear of Floating and Social Welfare
Tambakis, D.N. (2007)

The Renminbifs Dollar Peg at the Crossroads   Acrobat Required
Obstfeld, M. (2007)

Fear of appreciation | Published   ScienceDirect Required
Levy-Yeyati, E. & F. Sturzenegger (2007/13)

A Heterogenous Agents Model Usable for the Analysis of Currency Transaction Taxes   Acrobat Required
Demary, M. (2008)

Liquidity shocks and the dollarization of a banking system   ScienceDirect Required
Machicado, C.G. (2008)

Sterilized Intervention in Emerging-Market Economies: Trends, Costs, and Risks   Acrobat Required
Lavigne, R. (2008)

Sterilization, Monetary Policy, and Global Financial Integration
Aizenman, J. & R. Glick (2008)

Accumulating Foreign Reserves Under Floating Exchange Rates
Gonçalves, F.M. (2008)

Oral Interventions Versus Actual Interventions in Fx Markets - An Event-Study Approach   Wiley Interscience Required
Fratzscher, M. (2008)

Conditional Efficacy of Sterilized Intervention   Acrobat Required
Jun, J. (2008)

Fear of Declaring: Do Markets Care What Countries Say About Their Exchange Rate Policies?
Barajas, A., L. Erickson & R. Steiner (2008)

Exchange Rate Dynamics and the Relationship between the Random Walk Hypothesis and Official Interventions   Acrobat Required
Lima, E.J.A. & B.M. Tabak (2008)

A class of quadratic options for exchange rate stabilization   ScienceDirect Required
Suh, S. & F. Zapatero (2008)

The welfare implications of foreign exchange intervention   ScienceDirect Required
Ho, W-M. (2008)

Currency interdependence and dollarization   ScienceDirect Required
Dutu, R. (2008)

Dollarization, exchange rate regimes and government quality   ScienceDirect Required
Honig, A. (2009)

A new solution to the Purchasing Power Parity puzzles: Risk-aversion, exchange rate uncertainty and the Law of One Price   Acrobat Required
Arghyrou, M.G., A. Gregoriou & P.M. Pourpourides (2009)

Evaluating Historical CGER Assessments:How Well Have They Predicted Subsequent Exchange Rate Movements?
Abiad, A., P. Kannan & J. Lee (2009)

Learning under Fear of Floating | Published   Acrobat Required   ScienceDirect Required
Bigio, S. (2009/10)

The Effects of Real Exchange Rate Shocks in an Economy with Extreme Liability Dollarization   Acrobat Required
Melander, O. (2009)

Optimal devaluations
Hevia, C. & J.P. Nicolini (2009)

Should central bankers talk to the foreign exchange markets?   ScienceDirect Required
Beine, M., G. Janssen & C. Lecourt (2009)

A brief empirical history of U.S. foreign-exchange intervention: 1973-1995   Acrobat Required
Bordo, M.D., O.F. Humpage & A.J. Schwartz (2009)

The Future of China's Exchange Rate Policy
Goldstein, M. & N.R. Lardy (2009)

Policy Responses to Exchange-Rate Movements
Ball, L.M. (2009)

Financial dollarization: Short-run determinants in transition economies   ScienceDirect Required
Neanidis, K.C. & C.S. Savva (2009)

Speculative hyperinflations and currency substitution   ScienceDirect Required
Arce, O.J. (2009)

Exchange rate management in emerging markets: Intervention via an electronic limit order book   ScienceDirect Required
Melvin, M., L. Menkhoff & M. Schmeling (2009)

How successful is the G7 in managing exchange rates?   ScienceDirect Required
Fratzscher, M. (2009)

Do China and oil exporters influence major currency configurations?   ScienceDirect Required
Fratzscher, M. & A. Mehl (2009)

The Mechanics of Central Bank Intervention in Foreign Exchange Markets   Acrobat Required
Basu, K. (2009)

Optimal intervention in the foreign exchange market when interventions affect market dynamics
Kercheval, A.N. & J.F. Moreno (2009)

On-Going versus Completed Interventions and Yen/Dollar Expectations - Evidence from Disaggregated Survey Data   Acrobat Required
Yoshida, Y. & J.C. Rülke (2009)

Does inflation targeting lead to excessive exchange rate volatility?   Acrobat Required
Pétursson, T.G. (2009)

Currency Misalignments and Growth: a New Look Using Nonlinear Panel Data Methods
Bereau, S., A.L. Villavicencio & V. Mignon (2009)

Capturing the time dynamics of central bank intervention   ScienceDirect Required
Douglas, C.C. & M. Kolar (2009)

The Interest Rate — Exchange Rate Nexus: Exchange Rate Regimes and Policy Equilibria   Acrobat Required
Himmels, C. & T. Kirsanova (2009)

Macro-Hedging for Commodity Exporters
Borensztein, E., O. Jeanne & D. Sandri (2009)

High-Frequency Analysis of Foreign Exchange Interventions: What Do We Learn?   Wiley Interscience Required   SURVEY PAPER
Menkhoff, L. (2010)

Revisiting the Tobin Tax, in the Context of Development and the Financial Crisis
Yates, N.A. (2010)

Noise traders, exchange rate disconnect puzzle, and the Tobin tax   ScienceDirect Required
Xu, J. (2010)

Official Central Bank Interventions in the Foreign Exchange Markets: A DCC Approach with Exogenous Variables   Acrobat Required
Antonakakis, N. (2010)

FX Swaps: Implications for Financial and Economic Stability
Barkbu, B. & L.L. Ong (2010)

International reserves and swap lines: substitutes or complements?
Aizenman, J., Y. Jinjarak & D. Park (2010)

The economic consequences of a Tobin tax—An experimental analysis   ScienceDirect Required
Hanke, M., J. Huber, M. Kirchler & M. Sutter (2010)

Surfing the Waves of Globalization: Asia and Financial Globalization in the Context of the Trilemma | Published   ScienceDirect Required
Aizenman, J., M.D. Chinn & H. Ito (2010/11)

Financial Stability, the Trilemma, and International Reserves
Obstfeld, M., J.C. Shambaugh & A.M. Taylor (2010)

Implementing Official Dollarization
Jácome, L.I. & A. Lönnberg (2010)

Twin dollarization and exchange rate policy   ScienceDirect Required
Shi, K. & J. Xu (2010)

Are Small Countries Able to Set their Own Interest Rates? Assessing the Implications of the Macroeconomic Trilemma   Acrobat Required
Herwartz, H. & J. Roestel (2010)

Does Export Pricing Explain ‘Fear of Floating’ in Small Open Emerging Market Economies?   Acrobat Required
Farid, M. (2010)

Undervaluation through Foreign Reserve Accumulation: Static Losses, Dynamic Gains | Published   ScienceDirect Required
Korinek, A. & L. Serven (2010/16)

On the theory of sterilized foreign exchange intervention   ScienceDirect Required
Kumhof, M. (2010)

China as a reserve sink: The evidence from offset and sterilization coefficients   ScienceDirect Required
Ouyang, A.Y., R.S. Rajan & T.D. Willett (2010)

Exchange rate policies, patterns of specialization and economic development: theory and evidence in developing countries   Acrobat Required
Gala, P. & G. Libanio (2010)

Is Exchange Rate Stabilization an Appropriate Cure for the Dutch Disease?
Lama, R., M. Guzman & J. Pablo (2010)

Dedollarization
Kokenyne, A., J. Ley, & R. Veyrune (2010)

Dollarization does promote trade   ScienceDirect Required
Lin, S. & H. Ye (2010)

Are the intraday effects of central bank intervention on exchange rate spreads asymmetric and state dependent? | Published   Acrobat Required   ScienceDirect Required
Fatum, R., J. Pedersen & P.N. Sørensen (2010/13)

Deposit Dollarization and Its Impact on Financial Deepening in the Developing World   Acrobat Required
Court, E., E. Ozsoz & E.W. Rengifo (2010)

Absorbing A Windfall of Foreign Exchange: Dutch disease dynamics
van der Ploeg, F. & A.J. Venables (2010)

Desperately Seeking the Positive Impact of Undervaluation on Growth
Nouira, R. & K. Sekkat (2010)

Liability dollarization and fear of floating   Acrobat Required
Nguyen, Q.H. (2010)

Order flow and central bank intervention: An empirical analysis of recent Bank of Japan actions in the foreign exchange market   ScienceDirect Required
Marsh, I.W. (2011)

Financial dollarization: The role of foreign-owned banks and interest rates   ScienceDirect Required
Basso, H.S., O. Calvo-Gonzalez & M. Jurgilas (2011)

Pegs and Pain
Schmitt-Grohe, S. & M. Uribe (2011)

Large Devaluations, Foreign Direct Investment and Exports: A Speculative Note
Lederman, D. (2011)

Flexible inflation targets, forex interventions and exchange rate volatility in emerging countries   Acrobat Required
Berganza, J.C. & C. Broto (2011)

Financial Protectionism: the First Tests
Rose, A.K. & T. Wieladek (2011)

Nonlinear exchange rate dynamics under stochastic official intervention   ScienceDirect Required
Lee, H-Y. (2011)

Taxing Financial Transactions: An Assessment of Administrative Feasibility
Brondolo, J. (2011)

Exchange rate policy under sovereign default risk   ScienceDirect Required
(2011)

A structural threshold model of the exchange rate under optimal intervention   ScienceDirect Required
Lee, H-Y. & H-P. Lai (2011)

Real Exchange Rates and Growth Surges   Acrobat Required
McLeod, D. & E. Mileva (2011)

Exchange Rate Policy and Sovereign Spreads in Emerging Market Economies   Wiley Interscience Required
Gumus, I. (2011)

International Reserves and the Global Financial Crisis
Dominguez, K.M.E., Y. Hashimoto & T. Ito (2011)

Dollar Illiquidity and Central Bank Swap Arrangements During the Global Financial Crisis
Rose, A.K. & M.M. Spiegel (2011)

Foreign Exchange Intervention: A Shield Against Appreciation Winds?
Adler, G. & C.E. Tovar Mora (2011)

The Federal Reserve as an Informed Foreign Exchange Trader: 1973 – 1995
Bordo, M.D., O.F. Humpage & A.J. Schwartz (2011)

The relationship between investment and large exchange rate depreciations in dollarized economies   ScienceDirect Required
Carranza, L., J.E. Galdon-Sanchez & J. Gomez-Biscarri (2011)

Hybrid Inflation Targeting Regimes | Published   ScienceDirect Required
Roger, S., J. Restrepo & C. Garcia (2009/11)

Opposition to capital market opening   Acrobat Required
Engler, P. & A. Wulff (2011)

Currency blocs in the 21st century   Acrobat Required
Fischer, C. (2011)

Market microstructure matters when imposing a Tobin tax—Evidence from the lab   ScienceDirect Required
Kirchler, M., J. Huber & D. Kleinlercher (2011)

Currency intervention and the global portfolio balance effect: Japanese and Swiss lessons, 2003-2004 and 2009-2010   Acrobat Required
Gerlach, P., R.N. McMauley & K. Ueda (2011)

The Signalling Channel of Central Bank Interventions: Modelling the Yen/US Dollar Exchange Rate   Acrobat Required
Chen, Y-F., M. Funke & N. Glanemann (2011)

Exchange Rate Policy in Small Rich Economies   Acrobat Required
Breedon, F., T.G. Pétursson & Andrew K. Rose (2011)

The Impact of Monetary Policy on the Exchange Rate: puzzling evidence from three emerging economies | Published   Acrobat Required   ScienceDirect Required
Kohlscheen, E. (2011/14)

The Scope of Foreign Exchange Market Interventions   Acrobat Required
Bofinger, P. (2011)

Trilemma Policy Convergence Patterns and Output Volatility
Aizenman, J. & H. Ito (2012)

Global liquidity risk in the foreign exchange market   ScienceDirect Required
Banti, C., K. Phylaktis & L. Sarno (2012)

Resurrecting the weak credibility hypothesis in models of exchange-rate-based stabilization   ScienceDirect Required
Buffie, E.F. & M. Atolia (2012)

Financial Repression and External Imbalances   Acrobat Required
Johansson, A.C. & X. Wang (2012)

Capital controls and foreign exchange policy   Acrobat Required
Fratzscher, M. (2012)

Financial dollarization and systemic risks: New empirical evidence   ScienceDirect Required
Vieira, F.A.C., M. Holland & M.F. Resende (2012)

Currency intervention - the profitability of some recent international experiences   Acrobat Required
Cassino, E. & M. Lewis (2012)

Currency Intervention: A Case Study of an Emerging Market | Published   Acrobat Required   ScienceDirect Required
Fry-McKibbin, R. & S. Wanaguru (2012/13)

Does foreign exchange intervention volume matter?   Acrobat Required
Fatum, R. & Y. Yamamoto (2012)

Are changes in foreign exchange reserves a good proxy for official intervention?   ScienceDirect Required
Suardi, S. & Y. Chang (2012)

Capital Account Policies and the Real Exchange Rate
Jeanne, O. (2012)

Exchange rate undervaluation and economic growth: Díaz Alejandro (1965) revisited   ScienceDirect Required
Glüzmann, P.A., E. Levy-Yeyati & F. Sturzenegger (2012)

How to devalue exchange rates, without building up reserves: Strategic theory for central banking   ScienceDirect Required
Basu, K. (2012)

Central bank interventions and limit order behavior in the foreign exchange market   Acrobat Required
Susai, M. & Y. Yoshida (2012)

Capital Inflows and Booms in Assets Prices: Evidence From a Panel of Countries   Acrobat Required
Olaberría, E. (2012)

Modeling Sterilized Interventions and Balance Sheet Effects of Monetary Policy in a New-Keynesian Framework
Benes, J., A. Berg, R. Portillo & D. Vavra (2013)

Short- and Long-term Growth Effects of Exchange Rate Adjustment   Wiley Interscience Required
Kocenda, E., M. Maurel & G. Schnabl (2013)

Factors Influencing Emerging Market Central Banks' Decision to Intervene in Foreign Exchange Markets
Malloy, M. (2013)

Monetary and exchange rate policy under remittance fluctuations   ScienceDirect Required
Mandelman, F.S. (2013)

Foreign exchange intervention and expectation in emerging economies
Miyajima, K. (2013)

Official Interventions through Derivatives: affecting the demand for foreign exchange   Acrobat Required
Kohlscheen, E. & S.C. Andrade (2013)

A DSGE Model for a SOE with Systematic Interest and Foreign Exchange Policies in Which Policymakers Exploit the Risk Premium for Stabilization Purposes
Escude, G.J. (2013)

Volatility and Spillover Effects of Yen Interventions   Wiley Interscience Required
Chortareas, G., Y. Jiang & J.C. Nankervis (2013)

China's Profits and Losses from Currency Intervention, 1994-2011   Acrobat Required
Jin, H. & E.K. Choi (2013)

Foreign Exchange Market Interventions and the $-¥ Exchange Rate in the Long-Run   Acrobat Required
Beckmann, J., A. Belke & M. Kühl (2013)

How to Move the Exchange Rate If You Must: The Diverse Practice of Foreign Exchange Intervention by Central Banks and a Proposal for Doing It Better
Basu, K. & A. Varoudakis (2013)

Institutions and financial dollarization: Indirect effects based on a policy experiment   ScienceDirect Required
Neanidis, K.C. & C. S. Savva (2013)

Macroeconomic impacts of Chinese currency appreciation on China and the Rest of World: A global CGE analysis   ScienceDirect Required
Yang, J., W. Zhang & S. Tokgoz (2013)

Optimal Exchange Rate Policy in a Growing Semi-Open Economy   Acrobat Required
Bacchetta, P., K. Benhima & Y. Kalantzis (2013)

The Art of Currency Manipulation: How to Profiteer by Deliberately Distorting Exchange Rates
Basu, K. (2013)

Should developing countries undervalue their currencies?   ScienceDirect Required
Schröder, M. (2013)

The Impact of Different Types of Foreign Exchange Intervention: An Event Study Approach   Acrobat Required
Echavarría, J.J., L.F. Melo Velandia & M. Villamizar (2013)

Inflation-Targeting and Foreign Exchange Interventions in Emerging Economies   Acrobat Required
Pourroy, M. (2013)

Currency Wars in Action: How Foreign Exchange Interventions Work in an Emerging Economy   Acrobat Required
Moura, M.L., F.R. Pereira & G.M. Attuy (2013)

Capital Controls or Real Exchange Rate Policy? A Pecuniary Externality Perspective   Acrobat Required
Benigno, G., H. Chen, C. Otrok, A. Rebucci & E.R. Young (2013)

Exchange Rate Management and Crisis Susceptibility: A Reassessment
Ghosh, A.R., J.D. Ostry & M.S. Qureshi (2014)

Gauging Exchange Rate Targeting   ScienceDirect Required
Parsley, D. & H. Popper (2014)

One Fundamental and Two Taxes: When Does a Tobin Tax Reduce Financial Price Volatility?
Deng, Y., X. Liu & S-J. Wei (2014)

Market vs. Residence Principle: Experimental Evidence on the Effects of a Financial Transaction Tax   Acrobat Required
Huber, J., M. Kirchler, D. Kleinlercher & M. Sutter (2014)

Large Versus Small Foreign Exchange Interventions   ScienceDirect Required
Fatum, R. & Y. Yamamoto (2014)

On the effectiveness of devaluations in emerging and developing countries   Acrobat Required
Grekou, C. (2014)

The Impact of Different Types of Foreign Exchange Intervention: An Event Study Approach   Acrobat Required
Echavarría, J.J., L.F. Melo Velandia & M. Villamizar (2014)

Globalisation, Pass-through and the Optimal Policy Response to Exchange Rates | Published   ScienceDirect Required
Devereux, M.B. & J. Yetman (2014)

The Mechanics of Real Undervaluation and Growth
Wlasiuk, J.M. (2014)

A Model of the Twin Ds: Optimal Default and Devaluation
Na, S., S. Schmitt-Grohe, M. Uribe & V.Z. Yue (2014)

Official FX interventions through derivatives   ScienceDirect Required
Kohlscheen, E. & S.C. Andrade (2014)

Foreign Exchange Intervention and Monetary Policy: A Tale of Two Agencies with Conflicting Objectives   Wiley Interscience Required
Lambson, V., S. Takagi & I. Kozuru (2014)

The interbank market risk premium, central bank interventions, and measures of market liquidity   ScienceDirect Required
Alexius, A., H. Birenstam & J. Eklund (2014)

Inflation targeting and exchange rate volatility smoothing: A two-target, two-instrument approach   ScienceDirect Required
Castillo, C. (2014)

Competing for Order Flow in OTC Markets
Lester, B., G. Rocheteau & P-O. Weill (2014)

On the Effectiveness of Exchange Rate Interventions in Emerging Markets
Daude, C., E. Levy Yeyati & A. Nagengast (2014)

Currency substitution, risk premia and the Taylor principle   ScienceDirect Required
Airaudo, M. (2014)

Exchange Rate Policy and Export Performance in Efficiency-Driven Economies
Rowbotham, N.K., A. Saville & D. Mbululu (2014)

The International Policy Trilemma in the Post-Bretton Woods Era | Published   Acrobat Required   ScienceDirect Required
Mandilaras, A. (2014/15)

The real exchange rate as a target of macroeconomic policy
Frenkel, R. & M. Rapetti (2014)

Motives and Effectiveness of Forex Interventions: Evidence from Peru
Tashu, M. (2014)

Revisiting the Concept of Dollarization: The Global Financial Crisis and Dollarization in Low-Income Countries
Mwase, N. & F.Y. Kumah (2015)

Monetary Policy Independence under Flexible Exchange Rates: An Illusion?
Edwards, S. (2015)

A Survey on the Effects of Sterilized Foreign Exchange Intervention   SURVEY PAPER   Acrobat Required
Villamizar-Villegas, M. & D. Perez-Reyna (2015)

The Open-Economy Trilemma in China: Monetary and Exchange-Rate Policy Interaction under Financial Repression   Wiley Interscience Required
Wu, Y. (2015)

Living with the Trilemma Constraint: Relative Trilemma Policy Divergence, Crises, and Output Losses for Developing Countries | Published   ScienceDirect Required
Aizenman, J. & H. Ito (2013/14)

Rounding the Corners of the Policy Trilemma: Sources of Monetary Policy Autonomy | Published
Klein, M.W. & J.C. Shambaugh (2013/15)

Monetary Policy Spillovers and the Trilemma in the New Normal: Periphery Country Sensitivity to Core Country Conditions | Published   ScienceDirect Required
Aizenman, J., M.D. Chinn & H. Ito (2015/16)

Dilemma not Trilemma: The global Financial Cycle and Monetary Policy Independence
Rey, H. (2015)

Unveiling the Effects of Foreign Exchange Intervention: A Panel Approach
Adler, G., N. Lisack & R. Mano (2015)

Can Foreign Exchange Intervention Stem Exchange Rate Pressures from Global Capital Flow Shocks?
Blanchard, O.J., G. Adler & I.E. Carvalho Filho (2015)

Beyond Competitive Devaluations: The Monetary Dimensions of Comparative Advantage
Bergin, P.R & G. Corsetti (2015)

Distributional Effects of Monetary Policy in Emerging Market Economies
Prasad, E. & B. Zhang (2015)

Was the Forex Fixing Fixed?
Ito, T. & M. Yamada (2015)

The Distributional Consequences of Exchange Rate Devaluations   Acrobat Required
Levchenko, A. & J. Cravino (2015)

Real-Exchange-Rate-Adjusted Inflation Targeting in an Open Economy: Some Analytical Results   Acrobat Required
Froyen, R.T. & A.V. Guender (2015)

Exchange Rate Manipulation and Constructive Ambiguity   Wiley Interscience Required
Fernholz, R.T. (2015)

Can Foreign Exchange Intervention Stem Exchange Rate Pressures from Global Capital Flow Shocks?   Acrobat Required
Blanchard, O., G. Adler & I. de Carvalho Filho (2015)

Foreign exchange market intervention and price discovery   ScienceDirect Required
Chen, Y-L. & Y-F. Gau (2015)

External Devaluations: Are Small States Different?
Mejia, S.A., A. Cebotari, K. Greenidge & G.N. Keim (2015)

A Theoretical Approach to Sterilized Foreign Exchange Intervention   Wiley Interscience Required   SURVEY PAPER
Villamizar-Villegas, M. & D. Perez-Reyna (2015)

When Is Foreign Exchange Intervention Effective? Evidence from 33 Countries   Acrobat Required
Fratzscher, M., O. Goede, L. Menkhoff, L. Sarno & T. Stöhr (2015)

The Plaza Accord, 30 Years Later
Frankel, J. (2015)

The Impact of the Tobin Tax in a Heterogeneous Agent Model of the Foreign Exchange Market
Kukacka, J. & F. Stanek (2015)

A Darwinian Perspective on "Exchange Rate Undervaluation"   Acrobat Required
Du, Q. & S-J. Wei (2015)

Currency intervention and the global portfolio balance effect: Japanese lessons   ScienceDirect Required
Gerlach-Kristen, P., R.N. McCauley & K. Ueda (2016)

Foreign Exchange Intervention under Policy Uncertainty
Adler, G., R. Lama & J.P. Medina Guzman (2016)

The Cost of Foreign Exchange Intervention: Concepts and Measurement
Adler, G. & R. Mano (2016)

Foreign exchange market interventions under inflation targeting: The case of Guatemala   ScienceDirect Required
Catalán-Herrera, J. (2016)

What to Aim for? The Choice of an Inflation Objective When Openness Matters   Acrobat Required
Froyen, R.T. & A.V. Guender (2016)

The Real Exchange Rate in Open-Economy Taylor Rules: A Re-Assessment   Acrobat Required
Froyen, R.T. & A.V. Guender (2016)

Large Depreciations: Recent Experience in Historical Perspective   Acrobat Required
De Gregorio, J. (2016)

Exchange Rate Targeting in the Presence of Foreign Debt Obligations   Acrobat Required
Staveley-O'Carroll, J. & O.M. Staveley-O'Carroll (2016)

Exchange Rate-Based Stabilizations: A Literature Review   Wiley Interscience Required
Aytaç, O. (2016)

Foreign exchange intervention and monetary policy design: a market microstructure analysis   Acrobat Required
Montoro, C. & M. Ortiz (2016)

Exchange Rate Flexibility in China: Measurement, Regime Shifts and Driving Forces of Change   Wiley Interscience Required
Dixon, R., Z. Zhang & Y. Dai (2016)

A Theory of Foreign Exchange Interventions
Fanelli, S. & L. Straub (2016)

Currency Manipulation
Hassan, T.A., T.M. Mertens & T. Zhang (2016)

Taylor rule deviations and out-of-sample exchange rate predictability   ScienceDirect Required
Ince, O., T. Molodtsova & D.H. Papell (2016)

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Exchange Rate Regimes

Target Zones and Exchange Rate Dynamics   Recommended!   JSTOR Required
Krugman, P.R. (1991)

Abstract: This paper develops a simple model of exchange rate behavior under a target zone regime. It shows that the expectation that monetary policy will be adjusted to limit exchange rate variation affects exchange rate behavior even when the exchange rate lies inside the zone and is thus not being defended actively. Somewhat surprisingly, the analysis of target zones turns out to have a strong formal similarity to problems in option pricing and investment under uncertainty.

An Interpretation of Recent Research on Exchange Rate Target Zones   Recommended!   JSTOR Required
Svensson, L.E.O. (1992)

Abstract: A review of the theory, including extensions, and the empirics on research in exchange rate target zones.

No Single Currency Regime Is Right for All Countries or at All Times   Recommended!
Frankel, J.A. (1999)

Abstract: This essay considers some currently popular prescriptions for exchange-rate regimes: a general movement toward floating, toward fixing, or toward either extreme and away from the middle. The whole spectrum from fixed to floating is covered (including basket pegs, crawling pegs, and bands), with special attention to currency boards and dollarization. One overall theme is that the appropriate exchange-rate regime varies depending on the specific circumstances of the country in question (which includes the classic optimum-currency-area (OCA) criteria, as well as some newer criteria related to credibility) and depending on the circumstances of the period in question (which includes the problem of successful exit strategies). Latin American interest rates are seen to be more sensitive to U.S. interest rates when the country in question has a loose dollar peg than when it has a tight peg. It is also argued that such relevant country characteristics as income correlations and openness can vary over time, and that the OCA criterion is accordingly endogenous.

A regional export-weighted dollar: a different way of looking at exchange rate changes   Acrobat Required
Hervey, J.L. & W.A. Strauss (1996)

Optimal Choice of Exchange Rate Regime: The Case of Australia   Acrobat Required
Lim, J.J. (1998)

Fixed or Flexible? Getting the Exchange Rate Right in the 1990s   Adobe Acrobat Required!
Caramazza, F. & J. Aziz (1998)

Exchange Rate Regimes and the Stability of Trade Policy in Transition Economies
Drabek, Z. & J.C. Brada (1998)

Implications of the Currency Crisis for Exchange Rate Arrangements in Emerging East Asia
Kawai, M. & S. Akiyama (2000)

Proposed Strategy for a Regional Exchange Rate Arrangement in Post-Crisis East Asia
Kawai, M. & S. Takagi (2000)

Examining the Case for Currency Basket Regimes for Southeast Asia   Acrobat Required
Rajan, R.S. (2000)

Mundell, the Euro, and Optimum Currency Areas
McKinnon, R. (2000)

Monetary Independence in Emerging Markets - Does the Exchange Rate Regime Make a Difference?   Acrobat Required
Borensztein, E.R., J. Zettelmeyer & T. Philippon (2001)

Currency Unions   Recommended!
Alesina, A. & R.J. Barro (2001)

Abstract: This book brings together a diverse group of experts on international monetary policy to examine the basic conceptual issues of currency unions and other monetary regimes, including flexible and fixed exchange rates, and assess the available empirical evidence on the performance of these alternative monetary systems. They also draw some policy conclusions on the desirability of currency unions for countries in various circumstances. Currency Unions reviews the traditional case for flexible exchange rates and countercyclical—that is, expansionary during recessions and contractionary in booms—monetary policy and shows how flexible exchange rate regimes can better insulate the economy from such real disturbances as terms-of-trade shocks. The book also looks at the pitfalls of flexible exchange rates—and why fixed rates, particularly full dollarization—might be a more sensible choice for some emerging-market countries. The contributors also detail the factors that determine the optimal sizes of currency unions, explain how a currency union greatly expands the volume of international trade among its members, and examine the recent implementation of dollarization in Ecuador.

Exchange-Rate Regimes and International Trade: Evidence from the Classical Gold Standard Era   Acrobat Required
Lopez-Cordova, J.E. & C. Meissner (2001)

Exchange Rate Regimes: Some Lessons from Postwar Europe
Wyplosz, C. (2001)

Sustaining Fixed Exchange Rates - A Model with Debt and Institutions
Pitt, A. (2001)

How Do Countries Choose Their Exchange Rate Regime?
Poirson, H. (2001)

Real and Monetary Shocks to the Canadian Dollar: Do Canada and the U.S Form an Optimal Currency Area?
Carr, J.L. & J.E. Floyd (2001)

The Mechanics of a successful Exchange-Rate Peg: Lessons from Emerging Markets   Acrobat Required
Dueker, M. & A. Fischer (2001)

Fewer Monies, Better Monies
Dornbusch, R. (2001)

Does the Exchange Rate Regime Affect Macroeconomic Performance? Evidence from Transition Economies   Acrobat Required
Domac, I., K. Peters & Y. Yuzefovich (2001)

Real Exchange Rate Behavior Under Floating and Fixed Regimes   Acrobat Required
Lothian, J.R. & C.H. McCarthy (2001)

Baltic Monetary Regimes in the XX1st Century
Viksnins, G. (2001)

Pricing Currency Risk: Facts and Puzzles from Currency Boards   Acrobat Required
Schmukler, S. & L. Serven (2001)

Terms of Trade and Exchange Rate Regimes in Developing Countries | Published   ScienceDirect Required   Acrobat Required
Broda, C. (2001/2004)

Exchange-Rate Regimes and International Trade: Evidence from the Classical Gold Standard Era   Acrobat Required
Córdova, J.E.L. & C. Meissner (2001)

To Float or to Trail: Evidence on the Impact of Exchange Rate Regimes   Acrobat Required
Levy-Yeyati, E. & F. Sturzenegger (2001)

Exchange Rate Regimes and Economic Performance   Acrobat Required
Levy-Yeyati, E. & F. Sturzenegger (2001)

Fixed versus Flexible: Lessons from EMS Order Flow | Published   ScienceDirect Required
Killeen, W.P., R.K. Lyons & M.J. Moore (2001/06)

A Model of Exchange Rate Regime Choice in the Transitional Economies of Central and Eastern Europe
Sahay, R. (2001)

Fixed or floating: is it still possible to manage in the middle?   Acrobat Required
Glick, R. (2001)

Pegging and macroeconomic performance in East Asia   Acrobat Required
Moreno, R. (2001)

Estimation and Arbitrage Opportunities for Exchange Rate Baskets   Acrobat Required   Winzip Required
Mercurio, D. & C. Torricelli (2001)

Characterizing Exchange Rate Regimes in Post-Crisis East Asia
Baig, T. (2001)

Core, Periphery, Exchange Rate Regimes, and Globalization
Bordo, M.D. & M. Flandreau (2001)

Assessing the impact of macroeconomic news announcements on securities prices under different monetary policy regimes   Acrobat Required
Clare, A. & R. Courtenay (2001)

Maastricht and the Choice of Exchange Rate Regime in Transition Countries during the Run-Up to EMU   Acrobat Required
Szapary, G. (2001)

Beyond Bipolar: A Three-Dimensional Assessment of Monetary Frameworks   Recommended!   Acrobat Required
Kuttner, K.N. & A.S. Posen (2001)

Abstract: A great deal of attention has been focused recently on the impact of exchange rate regimes, just as previous empirical research examined central bank autonomy and announced targets for domestic monetary policy. To date, however, these three elements of monetary frameworks have been assessed in isolation from one another, and all have been viewed in terms of a unidimensional spectrum of fixity versus flexibility. Using a newly-constructed dataset, this paper jointly analyzes and compares all three elements’ effects on inflation and exchange rate behavior. The results show that each of the three elements has independent and distinct effects on nominal outcomes. Key findings include: (1) although hard pegs do tend to reduce inflation and attenuate exchange rate fluctuations within some range, they are clearly characterized by large devaluations; (2) central bank autonomy is associated with a more stable exchange rate and lower inflation; and (3) explicit inflation targeting reduces both inflation and its persistence, consistent with the view that inflation targeting increases flexibility through transparency. These results raise the possibility that a combination of central bank autonomy, inflation targeting, and a free float might offer the same benefits as any intermediate exchange rate regime on its own, without the proclivity to occasional large depreciations.

Anchor, Float or Abandon Ship: Exchange Rate Regimes for Accession Countries
Buiter, W.H. & C. Grafe (2002)

Exchange Rate Regimes and Capital Flows   SURVEY PAPER Recommended!
Tavlas, G.S. & M.K. Ulan (2002)

Abstract: From the series Annals of the American Academy of Political and Social Science, Vol 579.

Exchange rate regimes and financial dollarization: does flexibility reduce bank currency mismatches? | Published   Acrobat Required
Arteta, C. (2002/2005)

Global Transmission of Interest Rates: Monetary Independence and Currency Regime | Published   ScienceDirect Required
Frankel, J.A., S.L. Schmukler & L. Serven (2002)

Terms of Trade and Exchange Rate Regimes in Developing Countries
Broda, C. (2002)

Pricing Currency Risk: Facts and Puzzles from Currency Boards
Schmukler, S.L. & L. Servén (2002)

Optimal exchange rate regime in a two-sector economy   Winzip Required
Wibaut, Q. (2002)

Currency Substitution in Russia
Fridman, A. & A. Verbetsky (2002)

Terms of trade and exchange rate regimes in developing countries   Acrobat Required!
Broda, C. (2002)

Do "Flexible" Exchange Rates of Developing Countries Behave Like the Floating Exchange Rates of Industrialized Countries?
Wickham, P. (2002)

Exchange rate overshooting and the costs of floating   Adobe Acrobat Required
Cavallo, M., K. Kisselev, F. Perri & N. Roubini (2002)

"New" views on the optimum currency area theory : what is EMU telling us?   Acrobat Required!
Mongelli, F.P. (2002)

Policy pre-commitment and institutional design: A synthetic indicator applied to Currency Boards   Recommended!   Acrobat Required!
Gilson, M.T.C. (2002)

Abstract: Currency boards have been portrayed as an extreme way of creating currency quality and improving monetary policy credibility in emerging market economies. Yet the link between currency board operations and credibility is far from obvious. Indeed, under the heading of currency boards, there is in fact a number of significantly diverse institutional arrangements. Furthermore, currency boards can only be viewed as part of a wider policy framework encompassing fiscal sustainability and flexibility in the real economy. Along these lines, this paper describes as precisely as possible what constitutes, in theory, a currency board. It highlights the specificities of money multiplier and balance sheet issues in currency board frameworks. The paper offers an in-depth review of the actual institutional arrangements underlying existing currency boards in Eastern Europe and Asia (as well as that of Argentina until 2001) and derives a synthetic indicator of institutional pre-commitment. The paper concludes with a discussion of flexibility and credibility tradeoffs and exit issues.

The Modern History of Exchange Rate Arrangements: A Reinterpretation | Published   Recommended!   Ingenta Select Required
Reinhart, C.M. & K.S. Rogoff (2002/2004)

Abstract: We develop a novel system of reclassifying historical exchange rate regimes. One key difference between our study and previous classifications is that we employ monthly data on market-determined parallel exchange rates going back to 1946 for 153 countries. Our approach differs from the IMF official classification (which we show to be only a little better than random); it also differs radically from all previous attempts at historical reclassification. Our classification points to a rethinking of economic performance under alternative exchange rate regimes. Indeed, the breakup of Bretton Woods had less impact on exchange rate regimes than is popularly believed.

Uncertainty, Exchange Rate Regimes, and National Price Levels | Published   ScienceDirect Required
Broda, C. (2002/06)

Optimal Currency Areas
Alesina, A., R.J. Barro & S. Tenreyro (2002)

Currency Fluctuations, Liability Dollarization, and the Choice of Exchange Rate Regimes in Emerging Markets   Adobe Acrobat Required!
Osakwe, P.N. (2002)

Self-Validating Optimum Currency Areas
Corsetti, G. & P. Pesenti (2002)

Long-Run Determinants of Exchange Rate Regimes: A Simple Sensitivity Analysis
Juhn, G.S. & P. Mauro (2002)

Does It Really Matter Whether the Exchange Rate Floats or Not?   Adobe Acrobat Required
Cunha, A.B. (2002)

Classifying Exchange Rate Regimes   Adobe Acrobat Required
Nitithanprapas, I. & T.D. Willett (2002)

Exchange Rate Regimes: Choices and Consequences
Ghosh, A.R., A.M. Gulde & H.C. Wolf (2003)

Exchange Rate Regime Considerations in an Oil Economy: the Case of the Islamic Republic of Iran
Celasun, O. (2003)

On the Choice of an Exchange Regime: Target Zones Revisited   Acrobat Required
López, J.R. & H.R. Mendizábal (2003)

Segmented Asset Markets and Optimal Exchange Rate Regimes | Published   Acrobat Required   ScienceDirect Required
Lahiri, A., R. Singh & C. Vegh (2003/07)

Exchange Rate Regime Choice in Historical Perspective
Bordo, M.D. (2003)

Do Fixed Exchange Rates Induce More Fiscal Discipline?
Sun, Y. (2003)

Pick Your Poison: The Exchange Rate Regime and Capital Account Volatility in Emerging Markets
Iwata, S. & E. Tanner (2003)

The Mirage of Exchange Rate Regimes for Emerging Market Countries | Published   Recommended!   Ingenta Select Required
Calvo, G. & F.S. Mishkin (2003/2004)

Abstract: This paper argues that much of the debate on choosing an exchange rate regime misses the boat. It begins by discussing the standard theory of choice between exchange rate regimes, and then explores the weaknesses in this theory, especially when it is applied to emerging market economies. It then discusses a range of institutional traits that might predispose a country to favor either fixed or floating rates, and then turns to the converse question of whether the choice of exchange rate regime may favor the development of certain desirable institutional traits. The conclusion from the analysis is that the choice of exchange rate regime is likely to be of second order importance to the development of good fiscal, financial, and monetary institutions in producing macroeconomic success in emerging market countries. This suggests that less attention should be focused on the general question whether a floating or a fixed exchange rate is preferable, and more on these deeper institutional arrangements. A focus on institutional reforms rather than on the exchange rate regime may encourage emerging market countries to be healthier and less prone to the crises that we have seen in recent years.

Choosing (and reneging on) exchange rate regimes
Alesina, A. & A. Wagner (2003)

A Proposed Monetary Regime for Small Commodity Exporters: Peg the Export Price   Wiley Interscience Required
Frankel, J. (2003)

Living and Dying with Hard Pegs: The Rise and Fall of Argentina's Currency Board   Adobe Acrobat Required
Levy-Yeyati, E., A. de la Torre & S. Schmukler (2003)

Regional currency areas and the use of foreign currencies   CONFERENCE VOLUME
Various authors (2003)

Flexible Exchange Rates as Shock Absorbers | Published
Edwards, S. & E.L. Yeyati (2003/05)

Exits From Pegged Regimes: An Empirical Analysis
Duttagupta, R. & I. Otker-Robe (2003)

Noise trading and exchange rate regimes: Some empirical evidence   Adobe Acrobat Required
Herz, B. & C. Bauer (2003)

Exchange Rate Regime Choice in Historical Perspective   SURVEY PAPER   Recommended!
Bordo, M.D. (2003)

Abstract: In this paper, I survey the issue of exchange rate regime choice from the perspective of both the industrial and emerging economies taking an historical perspective. I first survey the theoretical issues beginning with a taxonomy of regimes. I then examine the empirical evidence on the delineation of regimes and their macroeconomic performance. The penultimate section provides a brief history of monetary regimes in industrial and emerging economies. The conclusion considers the case for a managed float regime for today's emerging economies.

Technical trading and exchange rate regimes: Some empirical evidence | Published   Adobe Acrobat Required
Bauer, C. & B. Herz (2003/2005)

A time series model for an exchange rate in a target zone with applications | Published   ScienceDirect Required   Adobe Acrobat Required
Lundbergh, S. & T. Terasvirta (2003/06)

How Tight Should Central Bank's Hands be Tied? Credibility, Volatility and the Optimal Band Width of a Target Zone   Adobe Acrobat Required
Lopez, J.R. & H.R. Mendizabal (2003)

Exchange Rate Regimes and Monetary Discipline - Only Hard Pegs Make a Difference   Adobe Acrobat Required
Francisco, M. & M. Bleaney (2003)

Monetary Fundamentals and Exchange Rate Dynamics under Different Nominal Regimes
Sarno, L., G. Valente & M.E. Wohar (2003)

Experience of and Lessons from Exchange Rate Regime in Emerging Economies   SURVEY PAPER
Frankel, J.A. (2003)

The Choice of Monetary/Exchange Rate Regimes: Concepts and Arguments   Acrobat Required
Dehejia, V.H. (2003)

Exchange Rate Regimes for the 21st Century: Asia, Europe and the Americas   Adobe Acrobat Required
Dean, J. (2003)

Explaining the Transition Between Exchange Rate Regimes   Adobe Acrobat Required
Masson, P. & F.J. Ruge-Murcia (2003)

Exchange Rate Regimes and Volatility: Comparison of the Snake and Visegrad | Published   ScienceDirect Required   Acrobat Required
Valachy, J. & E. Kocenda (2003/06)

Evolution and Performance of Exchange Rate Regimes
Rogoff, K., A.M. Husain, A. Mody, R.J. Brooks & N. Oomes (2003)

Optimum currency area theory: A selective review   Adobe Acrobat Required   SURVEY PAPER
Horvath, J. (2003)

Good Housekeeping? Reputation, Fixed Exchange Rates, and the 'Original Sin' Problem   Adobe Acrobat Required
Tan, K.Y. & P. Gai (2003)

A Time Series Model for an Exchange Rate in a Target Zone with Applications   Adobe Acrobat Required
Lundbergh, S. & T. Terasvirta (2003)

Financial Dollarization and Debt Deflation under a Currency Board   Adobe Acrobat Required
Levy-Yeyati, E., E. Schargrodsky & S. Galiani (2004)

The Effect of Fixed Exchange Rates on Monetary Policy   Ingenta Select Required
Shambaugh, J.C. (2004)

Exchange Rate Regimes, Globalisation And The Cost Of Capital In Emerging Markets   Adobe Acrobat Required
de los Rios, A.D. (2004)

The basket-peg, dollar-peg, and floating: A comparative analysis   ScienceDirect Required
Yoshino, N., S. Kaji & A. Suzuki (2004)

The Expenditure Switching Effect and the Choice Between Fixed and Floating Exchange Rates   ScienceDirect Required
Senay, O. & A. Sutherland (2004)

From Fixed to Float: Operational Aspects of Moving Towards Exchange Rate Flexibility
Karacadag, C., R. Duttagupta & G. Fernandez (2004)

Exchange Rate Regime Durability and Performance in Developing Countries Versus Advanced Economies | Published | Comment   ScienceDirect Required
Husain, A.M., A. Mody & K.S. Rogoff (2004)

Fixed Exchange Rates and Trade | Published
Klein, M.W. & J.C. Shambaugh (2004)

Structural Factors Affecting Exchange Rate Volatility: A Cross-Section Study
Canales Kriljenko, J.I. & K.F. Habermeier (2004)

Exchange-Rate Regimes: "Does What Countries Say Matter?" | Published   Acrobat Required
Genberg, H. & A.K. Swoboda (2004)

Endogenous Price Flexibility, the Expenditure Switching Effect and Exchange Rate Regime Choice   Acrobat Required
Senay, O. & A. Sutherland (2004)

An Institutional Framework for Comparing Emerging Market Currency Boards
Camilleri Gilson, M-T. (2004)

Monetary Policy and the Currency Denomination of Debt: A Tale of Two Equilibria | Published   ScienceDirect Required
Velasco, A. & R. Chang (2004/06)

Exchange Rate Regimes and Economic Linkages   Adobe Acrobat Required
Lee, J-W. & K. Shin (2004)

Could the Exchange Rate Regime Reduce Macroeconomic Volatility?   Adobe Acrobat Required
Carrera, J. & D. Bastourre (2004)

Fixed, Float or Intermediate? A Cross-COuntry Time Series Analysis Of Exchange Rate Regimes   Acrobat Required
Uctum, M. & I. Kato (2004)

Exchange Rate Regimes And Fiscal Performance. Do Fixed Exchange Rate Regimes Generate More Discipline Than Flexible Ones?   Acrobat Required
Vuletin, G.J. (2004)

Exchange Rate Regimes Past, Present and Future   Acrobat Required
Bordo, M.D., J. Christl, C. Just & H. James (2004)

Putting the Cart Before the Horse? Capital Account Liberalization and Exchange Rate Flexibility in China
Prasad, E., T. Rumbaugh & Q. Wang (2005)

Can Endogenous Changes in Price Flexibility Alter the Relative Welfare Performance of Exchange Rate Regimes?
Senay, O. & A. Sutherland (2005)

Classifying exchange rate regimes: Deeds vs. words   ScienceDirect Required
Levy-Yeyati, E. & F. Sturzenegger (2005)

The global implications of regional exchange rate regimes   ScienceDirect Required
Dellas, H. & G. Tavlas (2005)

Macroeconomic effects of nominal exchange rate regimes: new insights into the role of price dynamics   ScienceDirect Required
Kollmann, R. (2005)

Effective Exchange Rate Classifications and Growth | Published   ScienceDirect Required
Dubas, J.M., B-J. Lee & N.C. Mark (2005/10)

Cataclysms and Currencies: Does The Exchange Rate Regime Matter for Real Shocks? | Published   ScienceDirect Required
Ramcharan, R. (2005/07)

Are Emerging Market Countries Learning to Float?
Hakura, D. (2005)

Peg the export price index: A proposed monetary regime for small countries   ScienceDirect Required
Frankel, J.A. (2005)

The original sin and the blessing trinity: An investigation   ScienceDirect Required
Özmen, E. & D. Arinsoy (2005)

Pitfalls in estimating equilibrium exchange rates for transition economies   ScienceDirect Required
Maeso-Fernandez, F., C. Osbat & B. Schnatz (2005)

A modified currency board system: Theory and evidence   ScienceDirect Required
Wu, Y. (2005)

Pegged Exchange Rate Regimes -- A Trap?
Aizenman, J. & R. Glick (2005)

Productivity Growth and the Exchange Rate Regime: The Role of Financial Development   Adobe Acrobat Required
Aghion, P., P. Bacchetta, R. Rancière & K. Rogoff (2005)

Welfare implications of joining a common currency   Adobe Acrobat Required
Ca’Zorzi, M., R.A. De Santis & F. Zampolli (2005)

Exchange Rate Regimes and Trade   Acrobat Required
Adam, C. & D. Cobham (2005)

Structural Reforms and the Exchange Rate Regime: A Panel Analysis for the World versus OECD Countries   Acrobat Required
Belke, A., B. Herz & L. Vogel (2005)

The duration of fixed exchange rate regimes   Acrobat Required
Walti, S. (2005)

Evaluation of Currency Regimes: The Unique Role of Sudden Stops
Razin, A. & Y. Rubinstein (2005)

Output Costs, Currency Crises, and Interest Rate Defense of a Peg
Lahiri, A. & C.A. Vegh (2005)

Target Zones in Theory and History: Credibility, Efficiency, and Policy Autonomy | Published   ScienceDirect Required
Flandreau, M. & J. Komlos (2005/06)

Does the Time Inconsistency Problem Make Flexible Exchange Rates Look Worse Than You Think?
Armenter, R. & M. Bodenstein (2005)

Bi-Polar Disorder: Exchange Rate Regimes, Economic Crises and the IMF   Acrobat Required
Bird, G. & D. Rowlands (2005)

The Impact of Foreign Interest Rates on the Economy: The Role of the Exchange Rate Regime | Published   ScienceDirect Required
di Giovanni, J. & J.C. Shambaugh (2006/08)

On the identification of de facto currency pegs   ScienceDirect Required
Bénassy-Quéré, A., B. Cœuré & V. Mignon (2006)

Openness and the case for flexible exchange rates   Acrobat Required
Corsetti, G. (2005)

De facto and official exchange rate regimes in transition economies   ScienceDirect Required
von Hagen, J. & J. Zhou (2005)

To Peg or Not to Peg: A Template for Assessing the Nobler
Husain, A.M. (2006)

The choice between fixed and flexible exchange rates: Which is best for a small open economy?   ScienceDirect Required
Berger, W. (2006)

Exchange Rate Regimes, Location, and Specialization
Ricci, L.A. (2006)

The Impact of Foreign Interest Rates on the Economy: The Role of the Exchange Rate Regime   Acrobat Required
Shambaugh, J.C. & J. di Giovanni (2006)

Fiscal Policy and Welfare under Different Exchange Rate Regimes   Acrobat Required
Finn, Ø. (2006)

Choice of exchange rate regime in transition economies: An empirical analysis   ScienceDirect Required
Markiewicz, A. (2006)

International Exchange Rate Systems - Where do we Stand?   Acrobat Required
Siebert, H. (2006)

The exchange rate – A shock-absorber or source of shocks? A study of four open economies   ScienceDirect Required
Artis, M. & M. Ehrmann (2006)

Target zones for exchange rates and policy changes   ScienceDirect Required
Driffill, J. & M. Sola (2006)

Deviations from purchasing power parity under different exchange rate regimes: Do they revert and, if so, how?   ScienceDirect Required
Sarno, L. & G. Valente (2006)

Capital inflows, fiscal discretion, and exchange rate policy   ScienceDirect Required
Cook, D. & M.B. Devereux (2006)

Implications of the Modigliani-Miller Theorem for the Study of Exchange Rate Regimes   Acrobat Required
Cunha, A.B. (2006)

Exchange Rate Regimes, Specialization and Trade Volume
Devereux, M.B. & G.M. Voss (2006)

Optimal exchange rate regimes: Turning Mundell-Fleming's dictum on its head   Recommended!
Lahiri, A., R. Singh & C.A. Vegh (2006)

Abstract: A famous dictum in open economy macroeconomics -- which obtains in the Mundell-Fleming world of sticky prices and perfect capital mobility -- holds that the choice of the optimal exchange rate regime should depend on the type of shock hitting the economy. If shocks are predominantly real, a flexible exchange rate is optimal, whereas if shocks are mainly monetary, a fixed exchange rate is optimal. There is no obvious reason, however, why this paradigm should be the most appropriate one to think about this important issue. Arguably, asset market frictions may be as pervasive as goods market frictions (particularly in developing countries). In this light, we show that in a model with flexible prices and asset market frictions, the Mundell-Fleming dictum is turned on its head: flexible rates are optimal in the presence of monetary shocks, whereas fixed rates are optimal in response to real shocks. We thus conclude that the choice of an optimal exchange rate regime should depend not only on the type of shock (real versus monetary) but also on the type of friction (goods versus asset market).

On the Relevance of Exchange Rate Regimes for Stabilization Policy | Published   ScienceDirect Required
Adao, B., M.I.H. Correia & P. Teles (2006/09)

Exchange Rate Regimes, Globalisation, and the Cost of Capital in Emerging Markets   Acrobat Required
de los Rios, A.D. (2007)

Assessing China's Exchange Rate Regime
Frankel, J.A. & S-J. Wei (2007)

Parametric and Non-parametric Approaches to Exits from Fixed Exchange Rate Regimes   Acrobat Required
Asici, A.A. (2007)

Segmented Asset Markets and Optimal Exchange Rate Regimes
Lahiri, A., R. Singh & C.A. Vegh (2007)

Exchange Rate Regimes, Inflation and Growth in Developing Countries -- An Assessment
Bleaney, M. & M. Francisco (2007)

The choice of exchange rate regimes in developing countries: A multinomial panel analysis   ScienceDirect Required
von Hagen, J. & J. Zhou (2007)

Exchange rate dynamics in a target zone: a heterogeneous expectations approach   Acrobat Required
Bauer, C., P. De Grauwe & S. Reitz (2007)

IMF Support and Inter-regime Exchange rate Volatility   Acrobat Required
Arnold, I.J.M., R. MacDonald & C.G. de Vries (2007)

Expenditure-Switching Effect and the Choice of Exchange Rate Regime   Acrobat Required
Dong, W. (2007)

Pass-through of Exchange Rates and Competition Between Floaters and Fixers
Bergin, P.R. & R.C. Feenstra (2007)

Real exchange rate fluctuations, endogenous tradability and exchange rate regimes   ScienceDirect Required
Naknoi, K. (2008)

The dynamics of exchange rate regimes: Fixes, floats, and flips   ScienceDirect Required
Klein, M.W. & J.C. Shambaugh (2008)

Why Do Countries Peg the Way They Peg?The Determinants of Anchor Currency Choice
Meissner, C.M. & N. Oomes (2008)

Estimation of De Facto Exchange Rate Regimes: Synthesis of the Techniques for Inferring Flexibility and Basket Weights | Published
Frankel, J.A. & S-J. Wei (2008)

When is it Optimal to Abandon a Fixed Exchange Rate?   Recommended!   Wiley Interscience Required
Rebelo, S. & C.A. Vegh (2008)

Abstract: The influential Krugman–Flood–Garber (KFG) model of balance of payment crises assumes that a fixed exchange rate is abandoned if and only if international reserves reach a critical threshold value. From a positive standpoint, the KFG rule is at odds with many episodes in which the central bank has plenty of international reserves at the time of abandonment. We study the optimal exit policy and show that from a normative standpoint, the KFG rule is generally suboptimal. We consider a model in which the fixed exchange rate regime has become unsustainable due to an unexpected increase in government spending. We show that when there are no exit costs, it is optimal to abandon immediately. When there are exit costs, the optimal abandonment time is a decreasing function of the size of the fiscal shock. For large fiscal shocks, immediate abandonment is optimal. Our model is consistent with evidence suggesting that many countries exit fixed exchange rate regimes with still plenty of international reserves in the central bank’s vault.

Exchange Rate Regimes and Capital Mobility: How Much of the Swoboda Thesis Survives? | Alternative
Eichengreen, B. (2008)

The Rise and Fall of the Dollar, or When did the Dollar Replace Sterling as the Leading Reserve Currency?
Eichengreen, B. & M. Flandreau (2008)

Forward-rate target zones and exchange rate dynamics   ScienceDirect Required
Lin, H.C. (2008)

Currency Misalignments and Exchange Rate Regimes in Emerging and Developing Countries | Published   Wiley Interscience Required
Coudert, V. & C. Couharde (2008/09)

Foreign Debt and Fear of Floating: A Theoretical Exploration   Acrobat Required
Bleaney, M. & F.G. Ozkan (2008)

Exchange Rate Regimes and the Extensive Margin of Trade
Bergin, P.R. & C-Y. Lin (2008)

Exploring different views of exchange rate regime choice   ScienceDirect Required
Carmignani, F., E. Colombo & P. Tirelli (2008)

Does the Nominal Exchange Rate Regime Affect the Real Interest Parity Condition?   Acrobat Required
Dreger, C. (2008)

A Faith-based Initiative: Does a Flexible Exchange Rate Regime Really Facilitate Current Account Adjustment?
Chinn, M.D. & S-J. Wei (2008)

The Classification and Perfomance of Alternative Exchange-Rate Systems   Acrobat Required
Tavlas, G., H. Dellas & A. Stockman (2008)

Not Complements, But Substitutes: Fixed Exchange Rate Commitments, Central Bank Independence, and External Currency Stability   Wiley Interscience Required
Bearce, D.H. (2008)

Automatic stabilizer feature of fixed exchange rate regimes   ScienceDirect Required
Aysun, U. (2008)   SURVEY PAPER   Wiley Interscience Required   SURVEY PAPER
Harms, P. & M. Kretschmann (2009)

Does the currency regime shape unhedged currency exposure? | Published   Acrobat Required   ScienceDirect Required
Patnaik, I. & A. Shah (2008/10)

The Benefit of Exchange Rate Flexibility, Trade Openness and Extensive Margin   Acrobat Required
Naknoi, K. (2008)

Determinants of exchange rate regime switching   ScienceDirect Required
Fiess, N. & R. Shankar (2009)

Openness, exchange rate regimes and the Phillips curve   ScienceDirect Required
Bowdler, C. (2009)

Institutional development and the choice of exchange rate regime: A cross-country analysis   ScienceDirect Required
Hossain, M. (2009)

The Name of the Rose: Classifying 1930s Exchange-Rate Regimes   Acrobat Required
Urban, S.A. (2009)

Choosing and assessing exchange rate regimes: A survey of the literature   SURVEY PAPER
Cruz Rodriguez, A. (2009)

The Case for an Intermediate Exchange Rate Regime with Endogenizing Market Structures and Capital Mobility   Acrobat Required
Kaltenbrunner, A. & M. Nissanke (2009)

Bretton-Woods Systems, Old and New, and the Rotation of Exchange-Rates Regimes   Acrobat Required
Hall, S. (2009)

The Importance of the Exchange Rate Regime in Limiting Misalignment   ScienceDirect Required
Dubas, J.M. (2009)

Revised System for the Classification of Exchange Rate Arrangements
Habermeier, K.R., A. Kokenyne, R. Veyrune & H. Anderson (2009)

Are Hard Pegs Ever Credible in Emerging Markets? Evidence from the Classical Gold Standard
Mitchener, J.M. & M.D. Weidenmier (2009)

Structure and evolution of the foreign exchange networks
Kwapien, J., S. Gworek & S. Drozdz (2009)

Analysis of a network structure of the foreign currency exchange market
Kwapien, J., S. Gworek, S. Drozdz & A. Gorski (2009)

Exchange rate regimes, globalisation, and the cost of capital in emerging markets   ScienceDirect Required
de los Rios, A.D. (2009)

Exchange Rate Regimes in Developing and Emerging Economies and the Incidence of IMF Programs   ScienceDirect Required
Bird, G. & D. Rowlands (2009)

Advantages of Fixed Exchange Rate Regime from a General Equilibrium Perspective   Acrobat Required
Ajevskis, V. & K. Vitola (2009)

Estimation of De Facto Flexibility Parameter and Basket Weights in Evolving Exchange Rate Regimes
Frankel, J.A. & D. Xie (2009)

Deciding to Peg the Exchange Rate in Developing Countries:The Role of Private-Sector Debt   Acrobat Required
Harms, P. & M. Hoffmann (2009)

Analysis of exchange-rate regime effect on growth: theoretical channels and empirical evidence with panel data
Petreski, M. (2009)

Modeling Sample Selection for Durations with Time-Varying Covariates, with an Application to the Duration of Exchange Rate Regimes   Acrobat Required
Boehmke, F.J. & C.M. Meissner (2009)

On the endogeneity of exchange rate regimes | Published   Acrobat Required   ScienceDirect Required
Levy-Yeyati, E., F. Sturzenegger & I. Reggio (2009/10)

Exchange Rate Choices of Microstates
Imam, P.A. (2010)

The Empirics of Exchange Rate Regimes and Trade: Words vs. Deeds
Qureshi, M.S. & C.G. Tsangarides (2010)

Exchange Rate Regimes in the Modern Era   Recommended!
Klein, M.W. & J.C. Shambaugh (2010)

Abstract: An analysis of the operation and consequences of exchange rate regimes in an era of increasing international interdependence.

Terms of Trade Shocks and Economic Performance Under Different Exchange Rate Regimes   Acrobat Required
Ahmad, A.H. & E.J. Pentecost (2010)

Foreign direct investment and exchange rate regimes   Acrobat Required
Busse, M., C. Hefeker & S. Nelgen (2010)

Exchange Rate Regimes in the Modern Era: Fixed, Floating, and Flaky
Rose, A.K. (2010)

A Case for Intermediate Exchange-Rate Regimes
Salins, V. & A. Benassy-Quere (2010)

The macroeconomic effects of monetary and fiscal policy in a small open economy: Does the exchange rate regime matter?   ScienceDirect Required
Darius, R. (2010)

The Fall of the Vanishing Interim Regime Hypothesis: Towards a New Paradigm of the Choice of the Exchange Rate Regimes   Acrobat Required
Jurek, M. (2011)

Pegs and Pain
Schmitt-Grohé, S. & M. Uribe (2011)

Limits of Floating Exchange Rates: the Role of Foreign Currency Debt and Import Structure | Published   ScienceDirect Required
Towbin, P. & S. Weber (2011/13)

Trade, Exchange Rate Regimes and Output Co-Movement: Evidence from the Great Depression
Mathy, G.P. & C.M. Meissner (2011)

Words vs. Deeds: What Really Matters?
Ghosh, A.R., M.S. Qureshi, M. Saeed & C. Tsangarides (2011)

The role of financial development in exchange rate regime choices   ScienceDirect Required
Lin, S. & H. Ye (2011)

International monetary arrangements for the 21st century—Which way?   ScienceDirect Required
Hossain, M. (2011)

Testing the bounds: Empirical behavior of target zone fundamentals   ScienceDirect Required
Miller, J.I. (2011)

Exchange rate regime verification: An alternative method of testing for regime changes   ScienceDirect Required
Ahmad, A.H., D.I. Harvey & E.J. Pentecost (2011)

How Reliable are De Facto Exchange Rate Regime Classifications?
Eichengreen, B. & R. Razo-Garcia (2011)

Fixed Exchange Rate Versus Inflation Targeting: Evidence from DSGE Modelling   Acrobat Required
Ajevskis V. & K. Vitola (2011)

How Flexible Can Inflation Targeting Be and Still Work?   Acrobat Required
Kuttner, K. & A.S. Posen (2011)

Exchange rate arrangements and misalignments: contrasting words and deeds
Yougbaré, L. (2011)

Mark my Words: Information and the Fear of Declaring one’s Exchange Rate Regime | Published   Acrobat Required   ScienceDirect Required
Méon, P-G. & G. Minne (2011/14)

Exchange Rate Regimes in the Modern Era: Fixed, Floating, and Flaky   SURVEY PAPER
Rose, A.K. (2011)

Capital market imperfections and the theory of optimum currency areas   ScienceDirect Required
Agénor, P-R. & J. Aizenman (2011)

On the Distribution of Exchange Rate Regime Treatment Effects on International Trade
Dorn, S. & P. Egger (2011)

Global Imbalances, Exchange Rate Pegs and Capital Flows: A Closer Look
van den Noord, P. (2011)

Exchange Rate Regimes and Foreign Direct Investment Flows to Developing Countries   Wiley Interscience Required
Abbott, A., D.O. Cushman & G. De Vita (2012)

Hard or Soft Pegs? Choice of Exchange Rate Regime and Trade in Africa   ScienceDirect Required
Qureshi, M.S. & C.G. Tsangarides (2012)

Analysis of an unannounced foreign exchange regime change   ScienceDirect Required
Khemraj, T. & S. Pasha (2012)

Exchange Rate Volatility Under Peg: Do Trade Patterns Matter?
Lonkeng Ngouana, C. (2012)

Remittances, Exchange Rate Regimes and the Dutch Disease: A Panel Data Analysis   Wiley Interscience Required
Lartey, E.K.K., F.S. Mandelman & P.A. Acosta (2012)

Prudential Policy for Peggers
Schmitt-Grohe, S. & M. Uribe (2012)

Managing Currency Pegs
Schmitt-Grohé, S. & M. Uribe (2012)

Exchange rate regimes and fiscal multipliers
Born, B., F. Juessen & G. Müller (2012)

Explaining Shifts in Exchange Rate Regimes   Acrobat Required
Bird, G., A. Mandilaras & H. Popper (2012)

Bayesian estimation of exchange rate regime choice with spatial effect   ScienceDirect Required
Zhang, G. (2012)

Budgetary consolidation under different exchange rate regimes   ScienceDirect Required
Beetsma, R., M. Giuliodori & J. Hanson (2012)

Is the exchange rate regime really irrelevant for external adjustment?   ScienceDirect Required
Ghosh, A.R., M.S. Qureshi & C.G. Tsangarides (2012)

The "Great Moderation" in a Dual Exchange Rate Regime
Arndt, S.W. (2012)

Exchange Rate Asymmetry and Flexible Exchange Rates under Inflation Targeting Regimes: Evidence from Four East and Southeast Asian Countries   Wiley Interscience Required
Pontines, V. & R.Y. Siregar (2012)

International financial integration and national price levels: The role of the exchange rate regime   ScienceDirect Required
Hoffmann, M. & P. Tillmann (2012)

Does exchange rate control improve inflation targeting in emerging economies?   ScienceDirect Required
Pourroy, M. (2012)

Fiscal Policy, Monetary Regimes and Current Account Dynamics   Acrobat Required
Hohberger, S. & B. Herz (2012)

Welfare analysis of currency regimes with defaultable debts   ScienceDirect Required
Araujo, A., M. Leon & R. Santos (2013)

Fixed currency regimes and the time pattern of trade effects   ScienceDirect Required
Dorn, S. & P.H. Egger (2013)

Exchange Rate Target Zones: A Survey of the Literature   Wiley Interscience Required   SURVEY PAPER
Duarte, A.P., J.S. Andrade & A. Duarte (2013)

Evaluating the effect of de facto pegs on currency crises   ScienceDirect Required
Esaka, T. (2013)

Fixed currency regimes and the time pattern of trade effects   ScienceDirect Required
Dorn, S. & P.H. Egger (2013)

Convergence, capital accumulation and the nominal exchange rate   ScienceDirect Required
Benczur, P. & I. Konya (2013)

Duration of Fixed Exchange Rate Regimes in Emerging Economies   ScienceDirect Required
Tamgac, U. (2013)

Carry Trade, Reserve Accumulation, and Exchange-Rate Regimes
Alfaro, L. & F. Kanczuk (2013)

Exchange rate regimes and asset prices   ScienceDirect Required
Dellas, H. & G. Tavlas (2013)

Surprising Similarities: Recent Monetary Regimes of Small Economies | Published   ScienceDirect Required
Rose, A.K. (2013/14)

Policy Responses to Aid Surges in Countries with Limited International Capital Mobility: The Role of the Exchange Rate Regime | Published   ScienceDirect Required
Berg, A., R.A. Portillo & L-F. Zanna (2014)

An Empirical Inquiry into the Role of Sectoral Diversification in Exchange Rate Regime Choice   ScienceDirect Required
Chowdhury, M.T.H., P.S. Bhattacharya, D. Mallick & M.A. Ulubasoglu (2014)

Crises and Exchange Rate Regimes: Time to break down the bipolar view?   Acrobat Required
Combes, J-L., A. Minea & M.N. Sow (2014)

The Devil you Know: Pegs vs Floats with Uncertain Outcomes   Wiley Interscience Required
Bizuneh, M. & N. Valev (2014)

Exchange Rate Regimes and Business Cycles: An Empirical Investigation   Acrobat Required
Erdem, F.P. & E. Ozmen (2014)

Friedman Redux: External Adjustment and Exchange Rate Flexibility   Acrobat Required
Ghosh, A.R., M.S. Qureshi & C.G. Tsangarides (2014)

The Bond Market: An Inflation-Targeter's Best Friend
Rose, A.K (2014)

Monetary policy credibility and exchange rate pass-through: Some evidence from emerging countries   ScienceDirect Required
Aleem, A. & A. Lahiani (2014)

Capital Inflows, Exchange Rate Regimes and Credit Dynamics in Emerging Market Economies
Boudias, R. (2014)

Exchange Rate Flexibility under the Zero Lower Bound | Published   Acrobat Required   ScienceDirect Required
Cook, D. & M.B. Devereux (2014/16)

Exchange rate regimes and foreign exchange exposure: The case of emerging market firms   ScienceDirect Required
Ye, M., E. Hutson & C. Muckley (2014)

Examining the volatility of exchange rate: Does monetary policy matter?   Acrobat Required
Lim, S.Y. & S.K. Sek (2014)

Dynamic Effect of a Change in the Exchange Rate System: From a Fixed Regime to a Basket-Peg or a Floating Regime   Acrobat Required
Yoshino, N., S. Kaji & T. Asonuma (2015)

Fixed exchange rate regimes, real undervaluation and economic growth   Acrobat Required
Mao, R. & Y. Yao (2015)

On the distribution of exchange rate regime treatment effects on international trade   ScienceDirect Required
Dorn, S. & P. Egger (2015)

De Facto Exchange Rate Regime Classifications Are Better Than You Think   Acrobat Required
Bleaney, M., N. Tian & L. Yin (2015)

Exchange rate misalignments and the external balance under a pegged currency system   Acrobat Required
Gnimassoun, B. (2015)

Financial development, exchange rate regimes and productivity growth: Theory and evidence   ScienceDirect Required
Slavtcheva, D. (2015)

Global Trends in the Choice of Exchange Rate Regime   Acrobat Required
Bleaney, M., M. Tian & L. Yin (2015)

On the sustainability of exchange rate target zones with central parity realignments   ScienceDirect Required
Martínez-García, E. (2015)

Exchange rate regimes and current account adjustment: an empirical investigation | Published   Acrobat Required   ScienceDirect Required
Eguren-Martin, F. (2015/16)

Export diversification and exchange-rate regimes: Evidences from 72 developing countries   Acrobat Required
Liu, X. & J. Zhang (2015)

Persistent real misalignments and the role of the exchange rate regime   ScienceDirect Required
Caputo, R.Caputo, R. (2015)

Inflation Targeting and Exchange Rate Regimes in Emerging Markets
Ebeke, C. & A. Fouejieu (2015)

Floating with a Load of FX Debt?
Kliatskova, T. & U. Mikkelsen (2015)

How false beliefs about exchange rate systems threaten global growth and the existence of the Eurozone   Acrobat Required
White, W.R. (2015)

Current account dynamics, real exchange rate adjustment, and the exchange rate regime in emerging-market economies   ScienceDirect Required
Gervais, O., L. Schembri & L. Suchanek (2016)

Quantitative modelling of the EUR/CHF exchange rate during the target zone regime of September 2011 to January 2015   ScienceDirect Required
Lera, S.C. & D. Sornette (2016)

Optimal exchange rate flexibility with large labor unions   ScienceDirect Required
Cuciniello, V. & L. Lambertini (2016)

Does the microsimulation approach used in macro-micro modelling matter? An application to the distributional effects of capital outflows during Argentina's Currency Board regime   ScienceDirect Required
Debowicz, D. (2016)

Financial market segmentation and choice of exchange rate regimes   ScienceDirect Required
Mathur, V. & C. Subramanian (2016)

Global Financial Conditions and Monetary Policy Autonomy
Caceres, C., Y. Carriere-Swallow & B. Gruss (2016)

The Case for Flexible Exchange Rates in a Great Recession   Acrobat Required
Corsetti, G., K. Kuester & G.J. Müller (2016)

Currency Misalignments in emerging and developing countries: reassessing the role of exchange rate regimes   Acrobat Required
Couharde, C. & C. Grekou (2016)

Exchange Rate Regimes and Growth Collapses   Acrobat Required
Bleaney, M., S. Saxena & L. Yin (2016)

Purchasing power parity and the behavior of prices and nominal exchange rates across exchange-rate regimes   ScienceDirect Required
Lothian, J.R. (2016)

Pegxit Pressure: Evidence from the Classical Gold Standard   Acrobat Required
Mitchener, K.J. & C. Pina (2016)

Fiscal Discipline and Exchange Rates: Does Politics Matter?
Jalles, J.T., C. Mulas-Granados & J. Tavares (2016)

Monetary Policy Credibility and Exchange Rate Pass-Through
Carriere-Swallow, Y., B. Gruss, N.E. Magud & F. Valencia (2016)

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Financial Crises

Due to the vast amount of literature in this field, a separate page on financial crises has been set up. You can access it here.

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International Business Cycles

International Business Cycles   Recommended!   JSTOR Required
Ahmed, P., B. Ickes, P. Wang & S. Yoo (1993)

Abstract: The authors estimate a dynamic two-country model in which economic fluctuations are driven by a worldwide supply shock; country-specific supply shocks; and relative fiscal, money, and preference shocks. Identification is achieved using only long-run restrictions based on a theoretical model. The main results are: (1) supply shocks, particularly country-specific ones, are very important in generating international business cycles and (2) although the post-1973 flexible-exchange-rate period has been inherently more volatile, there are no differences in transmission properties of economic disturbances across exchange-rate regimes for the endogenous variables they focus on.

What Can Explain the Apparent Lack of International Consumption Risk Sharing?   Recommended!   JSTOR Required
Lewis, K.K. (1996)

International Risk Sharing is Better Than You Think (or Exchange Rates are Much Too Smooth)
Brandt, M.W., J.H. Cochrane & P. Santa-Clara (2001)

Spurious Welfare Reversals in International Business Cycle Models   Acrobat Required
Kim, J. & S.H. Kim (2001)

Capital Imports and the Jacksonian Economy: The Business Cycle and the Balance of Payments   Acrobat Required
Dick, T. J. O. & J.E. Floyd (2001)

Variable Factor Utilization and International Business Cycles
Baxter, M. & D. Farr (2001)

Why Is the Business-Cycle Behavior of Fundamentals Alike Across Exchange-Rate Regimes?   Acrobat Required
Dedola, L. & S. Leduc (2001)

The Rise in Comovement Across National Stock Markets: Market Integration or Global Bubble?
Brooks, R.J. & M. Del Negro (2002)

Synchronized Business Cycles in East Asia: Fluctuations in the Yen/Dollar Exchange Rate and China’s Stabilizing Role   Acrobat Required
McKinnon, R. & G. Schnabl (2002)

The Trade Comovement Problem in International Macroeconomics
Kose, M.A. & K.M. Yi (2002)

Substitution elasticities and investment dynamics in international business cycle models   Adobe Acrobat Required
Pakko, M.R. (2003)

The trade comovement problem in international macroeconomics   Adobe Acrobat Required
Kose, M.A. & K.M. Yi (2003)

How Does Globalization Affect the Synchronization of Business Cycles?
Kose, A., E.S. Prasad & M.E. Terrones Silva (2003)

International Business Cycles: The Quantitative Role of Transportation Costs   Adobe Acrobat Required
Mazzenga, E. & M. Ravn (2003)

How much does international trade affect business cycle synchronization?   Adobe Acrobat Required
Gruben, W.C., J. Koo & E. Millis (2003)

Are They All in the Same Boat? The 2000-01 Growth Slowdown and the G-7 Business Cycle Linkages
Helbling, T. & T. Bayoumi (2003)

Trade, Finance, Specialization, and Synchronization | Published   Ingenta Select Required
Imbs, J. (2003)

International Transmission of Business Cycles in an Increasingly Integrated Trade Structure, Industrial Structure, and International Business Cycles   Ingenta Select Required
Baxter, M. & M.A. Kouparitsas (2003)

How Does Globalization Affect the Synchronization of Business Cycles?   Ingenta Select Required
Kose, M.A., E.S. Prasad amp; M.E. Terrones (2003)

Understanding Changes in International Business Cycle Dynamics   Recommended!
Stock, J.H. & M.W. Watson (2003)

Abstract: The volatility of economic activity in most G7 economies has moderated over the past forty years. Also, despite large increases in trade and openness, G7 business cycles have not become more synchronized. After documenting these twin facts, we interpret G7 output data using a structural VAR that separately identifies common international shocks, the domestic effects of spillovers from foreign idiosyncratic shocks, and the effects of domestic idiosyncratic shocks. This analysis suggests that, with the exception of Japan, the widespread reduction in volatility is in large part associated with a reduction in the magnitude of the common international shocks. Had the common international shocks in the 1980s and 1990s been as large as they were in the 1960s and 1970s, G7 business cycles would have been substantially more volatile and more highly synchronized than they actually were.

Home Bias and the Structure of International and Regional Business Cycles   Adobe Acrobat Required
Artis, M.J. & M. Hoffmann (2003)

International Business Cycles: World, Region, and Country-Specific Factors   Ingenta Select Required
Kose, M.A., C. Otrok & C.H. Whiteman (2003)

Tariffs and the Great Depression Revisited
Crucini, M.J. & J. Kahn (2003)

Country Spreads and Emerging Countries: Who Drives Whom? | Published   ScienceDirect Required
Uribe, M. & V.Z. Yue (2003/06)

A spectral analysis of the cross-country consumption correlation puzzle   Adobe Acrobat Required
Pakko, M.R. (2003)

The transmission mechanism in a changing world   Acrobat Required
Artis, M.J., A.B.C. Galvao & M. Marcellino (2003)

Have National Business Cycles Become More Synchronized?
Bordo, M.D. & T. Helbling (2003)

Volatility and Comovement in a Globalized World Economy: An Empirical Exploration
Kose, A., E.S. Prasad, & M.E. Terrones Silva (2003)

International business cycles under fixed and flexible exchange rate regimes   Acrobat Required
Kouparitsas, M.A. (2003)

Determinants of Business Cycle Comovement: A Robust Analysis | Published | Comment   ScienceDirect Required
Baxter, M. & M.A. Kouparitsas (2004)

Financial globalization and real regionalization   ScienceDirect Required
Heathcote, J. & F. Perri (2004)

The International Business Cycle in a Changing World: Volatility and the Propagation of Shocks in the G7
Artis, M.J., D.R. Osborn & P. Perez-Vazquez (2004)

Comparing shocks and frictions in US and euro area business cycles: a Bayesian DSGE approach   Acrobat Required
Smets, F. & R. Wouters (2004)

Financial Globalization, International Business Cycles and Consumption Risk Sharing
Artis, M.J. & M. Hoffmann (2004)

Consumption and Real Exchange Rates with Incomplete Markets and Non-traded Goods | Published   Acrobat Required   ScienceDirect Required
Benigno, G. & C. Thoenissen (2004/08)

Stocks, Bonds, Money Markets and Exchange Rates: Measuring International Financial Transmission
Ehrmann, M., M. Fratzscher & R. Rigobon (2005)

Deflation and the International Great Depression: A Productivity Puzzle
Cole, H.L., L.E. Ohanian & R. Leung (2005)

Fiscal Divergence and Business Cycle Synchronization: Irresponsibility is Idiosyncratic
Darvas, Z., A.K. Rose & G. Szapary (2005)

Home Bias and International Risk Sharing: Twin Puzzles Separated at Birth
Sorensen, B.E., Y-T. Wu, O. Yosha & Y. Zhu (2005)

Can the Standard International Business Cycle Model Explain the Relation Between Trade and Comovement? | Published   ScienceDirect Required
Kose, M.A. & K-M. Yi (2005/06)

Has Financial Development Made the World Riskier?
Rajan, R.G. (2005)

Global Inflation   Acrobat Required
Ciccarelli, M. & B. Mojon (2005)

Intra- and international risk-sharing in the short run and the long run   ScienceDirect Required
Becker, S.O. & M. Hoffmann (2006)

International business cycles with domestic and foreign lenders   ScienceDirect Required
Iacoviello, M. & R. Minetti (2006)

Is the International Diversification Potential Diminishing? Foreign Equity Inside and Outside the US
Lewis, K.K. (2006)

Trade intensity and business cycle synchronization: Are developing countries any different?   ScienceDirect Required
Calderón, C., A. Chong & E. Stein (2007)

Heterogeneous preferences and equilibrium trading volume   ScienceDirect Required
Berrada, T., J. Hugonnier & M. Rindisbacher (2007)

Similarities and convergence in G-7 cycles   ScienceDirect Required
Canova, F., M. Ciccarelli & E. Ortega (2007)

Business Cycle Accounting   Recommended!   Wiley Interscience Required
Chari, V.V., P.J. Kehoe & E.R. McGrattan (2007)

Abstract: We propose a simple method to help researchers develop quantitative models of economic fluctuations. The method rests on the insight that many models are equivalent to a prototype growth model with time-varying wedges that resemble productivity, labor and investment taxes, and government consumption. Wedges that correspond to these variables—efficiency, labor, investment, and government consumption wedges—are measured and then fed back into the model so as to assess the fraction of various fluctuations they account for. Applying this method to U.S. data for the Great Depression and the 1982 recession reveals that the efficiency and labor wedges together account for essentially all of the fluctuations; the investment wedge plays a decidedly tertiary role, and the government consumption wedge plays none. Analyses of the entire postwar period and alternative model specifications support these results. Models with frictions manifested primarily as investment wedges are thus not promising for the study of U.S. business cycles.

Finance and international business cycles   ScienceDirect Required
Faia, E. (2007)

Business cycles with staggered prices and international trade in intermediate inputs   ScienceDirect Required
Huang, K.X.D. & Z. Liu (2007)

The Role of Nonseparable Utility and Nontradeables in International Business Cycle and Portfolio Choice
Matsumoto, A. (2007)

Monetary regime change and business cycles
Cúrdia, V. & D. Finocchiaro (2007)

Twin Deficits, Openness and the Business Cycle   Acrobat Required
Corsetti, G. & G.J. Mueller (2007)

High level of international risk sharing when the productivity growth contains long run risk   Acrobat Required
Chang, Y. (2007)

How Does Financial Globalization Affect Risk Sharing? Patterns and Channels | Published   ScienceDirect Required
Kose, M.A., E. Prasad & M. Terrones (2007/09)

International Diversification Gains and Home Bias in Banking
García-Herrero, A. & F.F. Vázquez (2007)

Changing Nature of North-South Linkages: Stylized Facts and Explanations
Akin, C. & M.A. Kose (2007)

Comovements in international stock markets   ScienceDirect Required
Morana, C. & A. Beltratti (2008)

Trade, Production Sharing, and the International Transmission of Business Cycles
Burstein, A., C. Kurz & L. Tesar (2008)

On the empirics of international smoothing   ScienceDirect Required
Asdrubali, P. & S. Kim (2008)

Stochastic Discount Factor Approach to International Risk-Sharing: Evidence from Fixed Exchange Rate Episodes   Acrobat Required
Hadzi-Vaskov, M. & C.J.M. Kool (2008)

Net exports, consumption volatility and international business cycle models   ScienceDirect Required
Raffo, A. (2008)

Understanding the evolution of world business cycles   ScienceDirect Required
Kose, M.A., C. Otrok & C.H. Whiteman (2008)

Closing international real business cycle models with restricted financial markets   ScienceDirect Required
Boileau, M. & M. Normandin (2008)

Global Business Cycles: Convergence or Decoupling? | Published   Wiley Interscience Required
Kose, M.A., C. Otrok & E. Prasad (2008/12)

Trade elasticity of substitution and equilibrium dynamics | Published   ScienceDirect Required
Bodenstein, M. (2008/10)

International Financial Remoteness and Macroeconomic Volatility | Published   ScienceDirect Required
Rose, A.K. & M.M. Spiegel (2008/09)

What Are the Driving Forces of International Business Cycles? | Published   ScienceDirect Required
Crucini, M.J., M.A. Kose & C. Otrok (2008/10)

Vertical specialization and international business cycle synchronization   Acrobat Required
Arkolakis, C. & A. Ramanarayanan (2008)

Financial Integration and Business Cycle Synchronization
Kalemli-Ozcan, S., E. Papaioannou & J.L. Peydro (2009)

On the international transmission of technology shocks   ScienceDirect Required
Enders, Z. & G.J. Müller (2009)

Transmission of the U.S. Subprime Crisis to Emerging Markets: Evidence on the Decoupling-Recoupling Hypothesis | Published   ScienceDirect Required
Dooley, M.P. & M.M. Hutchison (2009)

International business cycles and the relative price of investment goods   Acrobat Required
Basu, P. & C. Thoenissen (2009)

Putting the Parts Together: Trade, Vertical Linkages, and Business Cycle Comovement
di Giovanni, J. & A.A. Levchenko (2009)

Commodity Terms of Trade: The History of Booms and Busts
Spatafora, N. & I. Tytell (2009)

International Risk Sharing During the Globalization Era
Flood, R.P., N.P. Marion & A. Matsumoto (2009)

Cointegrated TFP Processes and International Business Cycles
Rabanal, P., J.F. Rubio-Ramirez & V. Tuesta (2009)

Regime Switches in GDP Growth and Volatility: Some International Evidence and Implications for Modeling Business Cycles
Smith, P. & P.M. Summers (2009)

Cointegrated TFP processes and international business cycles   Acrobat Required
Rabanal, P., J.F. Rubio-Ramirez & V. Tuesta (2009)

International portfolio reallocation: Diversification benefits and European monetary union   ScienceDirect Required
De Santis, R.A. & B. Gérard (2009)

International Business Cycle Accounting   Acrobat Required
Otsu, K. (2009)

Medium-term business cycles in developing countries   Acrobat Required
Comin, D., N. Loayza, F. Pasha & L. Serven (2009)

Modeling News-Driven International Business Cycles | Published   Acrobat Required   ScienceDirect Required
Beaudry, P., M. Dupaigne & F. Portier (2009/10)

Limited asset market participation and the consumption-real exchange rate anomaly   Acrobat Required
Kollmann, R. (2010)

Global versus country-specific shocks and international business cycles   ScienceDirect Required
Boileau, M., M. Normandin & B.P. Fosso (2010)

Terms of Trade Shocks and Fiscal Cycles
Kaminsky, G.L. (2010)

Market power in banking, countercyclical margins and the international transmission of business cycles   ScienceDirect Required
Olivero, M.P. (2010)

Leverage constraints and the international transmission of shocks   Acrobat Required
Devereux, M.B. & J. Yetman (2010)

Inflation targeting and business cycle synchronization   ScienceDirect Required
Flood, R.P. & A.K. Rose (2010)

Banking Globalization and International Business Cycles | Published   Acrobat Required   ScienceDirect Required
Ueda, K. (2010/12)

Organizational Capital and the International Co-movement of Investment | Published   Acrobat Required   ScienceDirect Required
Johri, A., M-A. Letendre & D. Luo (2010/11)

International Business Cycle Spillovers
Yilmaz, K. (2010)

Business Cycles around the Globe: A Regime-switching Approach
Altug, S.G. & M. Bildirici (2010)

Global Banking and International Business Cycles | Published   ScienceDirect Required
Enders, Z., R. Kollmann & G. Müller (2010/11)

The First Global Recession in Decades
Imbs, J. (2010)

Technology Shocks: Novel Implications for International Business Cycles
Raffo, A. (2010)

Investment - Specific Technology Shocks and International Business Cycles: An Empirical Assessment
Rabanal, P., F. Mandelman, J.F. Rubio-Ramirez & D. Vilan (2010)

Incentive problems and the pattern of international risk sharing   ScienceDirect Required
Eijffinger, S. & W. Wagner (2010)

Banking globalization and international business cycles   Acrobat Required
Ueda, K. (2010)

Deconstructing The International Business Cycle: Why Does A U.S. Sneeze Give The Rest Of The World A Cold?
Bayoumi, T. & T.T. Bui (2010)

Do Credit Shocks Matter? A Global Perspective | Published   ScienceDirect Required
Helbling, T., R. Huidrom, M.A. Kose & C. Otrok (2010/11)

Exporting recessions: International links and the business cycle   ScienceDirect Required
Yetman, J. (2010)

International comovements, business cycle and inflation: A historical perspective   ScienceDirect Required
Mumtaz, H., S. Simonelli & P. Surico (2010)

How does multinational production change international comovement?   Acrobat Required
Contessi, S. (2010)

Is History a Blessing or a Curse? International Borrowing without Commitment, Leapfrogging and Growth Reversals   Acrobat Required
Boucekkine, R. & P-A. Pintus (2010)

Trade and synchronization in a multi-country economy   Acrobat Required
Juvenal, L. & P.S. Monteiro (2010)

Multi-country real business cycle models: Accuracy tests and test bench   ScienceDirect Required
Juillard, M. & S. Villemot (2011)

Comparison of solutions to the multi-country Real Business Cycle model   ScienceDirect Required
Kollmann, R., S. Maliar, B.A. Malin & P. Pichler (2011)

Robust control, informational frictions, and international consumption correlations | Published   ScienceDirect Required   Acrobat Required
Luo, Y., J. Nie & E.R. Young (2010/14)

Robustness, information-processing constraints, and the current account in small open economies   Acrobat Required
Luo, Y., J. Nie & E.R. Young (2010)

Globalization, the Business Cycle, and Macroeconomic Monitoring
Aruoba, S.B., F.X. Diebold, M.A. Kose & M. Terrones (2011)

Revisiting the consumption-real exchange rate anomaly in a model with non-traded goods   ScienceDirect Required
Nuntramas, P. (2011)

Endogenous Entry, International Business Cycles, and Welfare   Acrobat Required
Auray, S. & A. Eyquem (2011)

Business Cycle Synchronization Since 1880
Artis, M.J., G. Chouliarakis & P.K.G. Harischandra (2011)

How Do Business and Financial Cycles Interact?
Claessens, S., M.A. Kose & M. Terrones (2011)

Cointegrated TFP processes and international business cycles   ScienceDirect Required
Rabanal, P., J.F. Rubio-Ramírez, V. Tuest (2011)

Business cycle synchronisation: disentangling trade and financial linkages   Acrobat Required
Dées, S. & N. Zorell (2011)

The World Has More Than Two Countries: Implications of Multi- Country International Real Business Cycle Models   Acrobat Required
Ishise, H. (2011)

Closing large open economy models   ScienceDirect Required
Bodenstein, M. (2011)

International Risk Cycles | Published   ScienceDirect Required
Gourio, F., M. Siemer & A. Verdelhan (2011/13)

Labor wedges and open economy puzzles   Recommended!
Karabarbounis, L. (2011)

Abstract: A parsimonious model with home production, estimated to match moments of the “labor wedge,” explains prominent puzzles of the international business cycle. If market and home activity are substitutes, then the measured labor wedge increases whenever market consumption and employment decrease. Home production breaks the tight negative link between market consumption and its marginal utility and therefore helps explain the international risk sharing puzzle. In an estimated two-country dynamic general equilibrium model in which the labor wedge is endogenously generated to match its empirical moments, market output and market employment are more correlated than market consumption and investment across countries, relative market consumption is negatively related to the real exchange rate and real net exports are countercyclical. Further, the international risk sharing puzzle becomes easier to explain as the degree of financial completeness increases.

The Extensive Margin, Sectoral Shares and International Business Cycles
Devereux, M.B. & V. Hnatkovska (2011)

International Recessions
Perri, F. & V. Quadrini (2011)

Trade agreements and international comovements: The case of NAFTA (North American Free Trade Agreement)   ScienceDirect Required
Bejan, M. (2011)

Medium Term Business Cycles in Developing Countries | Published
Comin, D., N. Loayza, F. Pasha & L. Servén (2011)

Financial integration and international business cycle co-movement: the role of balance sheets   Acrobat Required
Davis, S. (2011)

International Business Cycle Comovement: Trade and Foreign Direct Investment   Acrobat Required
Jansen, J. & A. Stokman (2011)

Foreign direct investment and business cycle co-movements: The panel data evidence   ScienceDirect Required
Hsu, C-C., J-Y. Wu & R. Yau (2011)

Factor Proportions and International Business Cycles   Acrobat Required
Jin, K. & N. Li (2011)

Risk Sharing through Capital Gains
Balli, F., S. Kalemli-Ozcan & B. Sorensen (2011)

International real business cycles with endogenous markup variability   ScienceDirect Required
Davis, J.S. & K.X.D. Huang (2011)

The yield curve in a small open economy   ScienceDirect Required
Kulish, M. & D. Rees (2011)

Firms entry, monetary policy and the international business cycle   Acrobat Required
Lilia, C. (2011)

Emerging from the war: Gold Standard mentality, current accounts and the international business cycle 1885-1939   Acrobat Required
Hoffmann, M. & U. Woitek (2011)

A Dynamic General Equilibrium Analysis of Monetary Policy Rules, Adverse Selection and Long-Run Financial Risk
Blommestein, H.J., S.C.W Eijffinger & Z. Qian (2011)

The role of credit in international business cycles   Acrobat Required
Xu, T.T. (2011)

International transmission of business cycles: Evidence from dynamic correlations   ScienceDirect Required
Fidrmuc, J., T. Ikeda & K. Iwatsubo (2012)

The Trade Comovement Puzzle and the Margins of International Trade   Acrobat Required
Liao, W. & A.M. Santacreu (2012)

International business cycles with complete markets   ScienceDirect Required
Dmitriev, A. & I. Roberts (2012)

Investment Composition and International Business Cycles | Published   Acrobat Required   ScienceDirect Required
Oviedo, P.M. & R. Singh (2012)

Business cycles through international shocks: A structural investigation   ScienceDirect Required
Yilmazkuday, H. (2012)

Global Banks, Financial Shocks and International Business Cycles: Evidence from an Estimated Model
Kollmann, R. (2012)

Trade Wedges, Inventories, and International Business Cycles | Published   ScienceDirect Required
Alessandria, G., J. Kaboski & V. Midrigan (2012/13)

International Business Cycles and Financial Frictions   Acrobat Required
Yao, W. (2012)

Home Production, Labor Wedges, and International Real Business Cycles | Published   ScienceDirect Required
Karabarbounis, L. (2012/14)

Business cycle synchronization during US recessions since the beginning of the 1870s   ScienceDirect Required
Antonakakis, N. (2012)

The Few Leading The Many: Foreign Affiliates and Business Cycle Comovement | Published
Kleinert, J., J. Martin & F. Toubal (2012/15)

Expected Currency Excess Returns and International Business Cycles   Acrobat Required
Lee, S. (2012)

International Transmission of Financial Shocks in an Estimated DSGE model | Published   ScienceDirect Required   Acrobat Required
Aysun, U. & S. Alpanda (2012/14)

Trade and Synchronization in a Multi Country Economy   Acrobat Required
Monteiro, P.S. & L. Juvenal (2012)

Workers’ Remittances: An Overlooked Channel of International Business Cycle Transmission?
Barajas, A., R. Chami, C. Ebeke & S. Tapsoba (2012)

How Does Deposit Insurance Affect Bank Risk? Evidence from the Recent Crisis
Anginer, D., A. Demirguc-Kunt & M. Zhu (2012)

The Rising Resilience of Emerging Market and Developing Economies
Abiad, A., J. Bluedorn, J. Guajardo & P. Topalova (2012)

Banks, Sovereign Debt and the International Transmission of Business Cycles
Guerrieri, L., M. Iacoviello & R. Minetti (2013)

Macroeconomic Model Spillovers and Their Discontents
Bayoumi, T. &amnp; F. Vitek (2013)

Emerging economies in the 2000s: Real decoupling and financial recoupling   ScienceDirect Required
Levy Yeyati, E. & T. Williams/I> (2013)

Regionalization vs. Globalization
Hirata, H., M. Kose & C. Otrok (2013)

The Global Financial Crisis: An Anatomy of Global Growth
Matheson, T. (2013)

Assessing International Efficiency
Heathcote, J. & F. Perri (2013)

Do Institutions and Culture Matter for Business Cycles?
Altug, S.G. & F. Canova (2013)

The Great Recession: A Self-Fulfilling Global Panic
Bacchetta, P. & E. van Wincoop (2013)

Large global volatility shocks, equity markets and globalisation: 1885-2011   Acrobat Required
Mehl,. A. (2013)

International Business Cycles with Complete Markets   Acrobat Required
Dmitriev, A. & I. Roberts (2013)

Financial exposure and the international transmission of financial shocks   Acrobat Required
Kamber, G. & C. Thoenissen (2013)

Financial factors and the international transmission mechanism   Acrobat Required
Haddow, A. & M. Mileva (2013)

News Shocks, Real Exchange Rates and International Co-Movements   Acrobat Required
Lambrias, K. (2013)

The Great Recession: A Self-Fulfilling Global Panic   Acrobat Required
Bacchetta, P. & E. van Wincoop (2013)

World, Country, and Sector Factors in International Business Cycles   ScienceDirect Required
Karadimitropoulou, A. & M. León-Ledesma (2013)

Business cycle convergence in EMU: A first look at the second moment   ScienceDirect Required
Crespo-Cuaresma, J. & O. Fernández-Amador (2013)

Output gap and non-linear economic convergence   ScienceDirect Required
Beyaert, A. & J. García-Solanes (2013)

Economic depression in the world   ScienceDirect Required
Breuer, J.B. & J. McDermott (2013)

Firms' entry, monetary policy and the international business cycle   ScienceDirect Required
Cavallari, L. (2013)

Cross-country Transmission Effect of the U.S. Monetary Shock under Global Integration   Acrobat Required
Fukuda, Y., Y. Kimura, N. Sudo & H. Ugai (2013)

Limited participation in international business cycle models: A formal evaluation   ScienceDirect Required
Gao, X., V. Hnatkovska & V. Marmer (2013)

Labor market polarization and international macroeconomic dynamics |   Acrobat Required   ScienceDirect Required
Mandelman, F.S. (2013/16)

Half a century of Empirical Evidence of Business Cycles in OECD countries   ScienceDirect Required
Konstantakopoulou, I. & E.G. Tsionas (2014)

Financial Integration and International Business Cycle Co-movement   ScienceDirect Required
Davis, J.S. (2014)

The International Business Cycle and Gold-Price Fluctuations   ScienceDirect Required
Pierdzioch, C., M. Risse & S. Rohloff (2014)

News-driven international business cycles   De Gruyter Journals Required
Kosaka, M.S. (2014)

Have business cycles changed over the last two decades? An empirical investigation   ScienceDirect Required
Calderón, C. & J.R. Fuentes (2014)

Emerging Economies' Supply Shocks and Japan's Price Deflation: International Transmissions in a Three-Country DSGE Model
Hirakata, N., Y. Iwasaki & M. Kawai (2014)

Trade Integration and Business Cycle Synchronization: A Reappraisal with Focus on Asia
Duval, R.A., K.C. Cheng, K.H. Oh, R. Saraf & D. Seneviratne (2014)

Emerging Market Fluctuations: What Makes The Difference?   ScienceDirect Required
Hevia, C. (2014)

Preference Shocks, International Frictions, and International Business Cycles   Acrobat Required
Hirata, H. (2014)

International business cycles and remittance flows   De Gruyter Journals Required
Cooray, A. & D. Mallick (2014)

Business cycle accounting of the BRIC economies   De Gruyter Journals Required
Chakraborty, S. & K. Otsu (2014)

International Banking and Liquidity Risk Transmission: Lessons from Across Countries
Buch, C. & L.S. Goldberg (2014)

Business cycles synchronization in East Asia: A Markov-switching approach   ScienceDirect Required
Dufrénot, G. & B. Keddad (2014)

International transmission of productivity shocks with nonzero net foreign debt   De Gruyter Journals Required
Mykhaylova, O. & J. Staveley-O'Carroll (2014)

The role of investment-specific technology shocks in driving international business cycles: a bayesian approach
Dey, J. (2014)

Trade in Intermediate Inputs and Business Cycle Comovement
Johnson, R.C. (2014)

International (spillovers in) macrofinancial linkages and the decoupling phenomenon   ScienceDirect Required
Pesce, A. (2014)

Determinants of Financial Market Spillovers: The Role of Portfolio Diversification, Trade, Home Bias, and Concentration
Shinagawa, Y. (2014)

International Transmission of Credit Shocks: Evidence from Global Vector Autoregression Model   Acrobat Required
Fadejeva, L., M. Feldkircher & T. Reininger (2014)

Policy uncertainty spillovers to emerging markets - evidence from capital flows   Acrobat Required
Gauvin, L., C. McLoughlin & D. Reinhardt (2014)

Policy and Spillover Analysis in the World Economy: A Panel Dynamic Stochastic General Equilibrium Approach
Vitek, F. (2014)

Foreign shocks in an estimated multi-sector model   Acrobat Required
Bergholt, D. (2014)

'N Sync: how do countries' economies move together?   Acrobat Required
Graham, J. (2014)

Entry, trade costs, and international business cycles   ScienceDirect Required
Fattal Jaef, R.N. & J.I. Lopez (2014)

Comovement in GDP trends and cycles among trading partners   ScienceDirect Required
Blonigen, B.A., J. Piger & N. Sly (2014)

One money, one cycle? The EMU experience   ScienceDirect Required
Gächter, M. & A. Riedl (2014)

International Comovement of Economic Fluctuations: A Spatial Analysis   ScienceDirect Required
Wang, M., M.C.S. Wong & J. Granato (2014)

Globalization and international business cycle dynamics: A conditional GVAR approach   Acrobat Required
Binder, M. & C.J. Offermanns (2014)

Eurosclerosis and international business cycles   ScienceDirect Required
Cook, D. & J. Xu (2015)

TFP, News, and 'Sentiments': The International Transmission of Business Cycles   Recommended!   Acrobat Required
Levchenko, A.A. & N. Pandalai-Nayar (2015)

Abstract: We propose a novel identification scheme for a non-technology business cycle shock, that we label “sentiment.” This is a shock orthogonal to identified surprise and news TFP shocks that maximizes the short-run forecast error variance of an expectational variable, alternatively a GDP forecast or a consumer confidence index. We then estimate the international transmission of three identified shocks – surprise TFP, news of future TFP, and “sentiment” – from the US to Canada. The US sentiment shock produces a business cycle in the US, with output, hours, and consumption rising following a positive shock, and accounts for the bulk of short-run business cycle fluctuations in the US. The sentiment shock also has a significant impact on Canadian macro aggregates. In the short run, it is more important than either the surprise or the news TFP shocks in generating business cycle comovement between the US and Canada, accounting for up to 50% of the forecast error variance of Canadian GDP and about one-third of Canadian hours, imports, and exports. The news shock is responsible for some comovement at 5-10 years, and surprise TFP innovations do not generate synchronization.

Financial Crisis, US Unconventional Monetary Policy and International Spillovers
Chen, Q., A. Filardo, D. He & F. Zhu (2015)

Can indeterminacy and self-fulfilling expectations help explain international business cycles?   Acrobat Required
McKnight, S. & L. Povoledo (2015)

Network Effects of International Shocks and Spillovers
Kireyev, A. & A. Leonidov (2015)

Cross-border Banking, Spillover Effects and International Business Cycles   Acrobat Required
Kopoin, A. (2015)

International Transmission of Credit Shocks in an Equilibrium Model with Production Heterogeneity   Acrobat Required
Imura, Y. & J. Thomas (2015)

Bank Capital, Credit Market Frictions and International Shocks Transmission   Acrobat Required
Kopoin, A., K. Moran & J-P. Kevin (2015)

Agency Costs, Risk Shocks and International Cycles   Acrobat Required
Letendre, M-A. & J. Wagner (2015)

Foreign banks and international shock transmission: Does bank ownership still matter?   ScienceDirect Required
Xu, Y. & H.A. La (2015)

Household Debt and Business Cycles Worldwide
Mian, A.R., A. Sufi & E. Verner (2015)

Big Players Out of Synch: Spillovers Implications of US and Euro Area Shocks
Osorio Buitron, C. & E. Vesperoni (2015)

Monitoring the world business cycle   ScienceDirect Required
Camacho, M. & J. Martinez-Martin (2015)

Credit, Asset Prices and Business Cycles at the Global Level   Acrobat Required
Dees, S. (2015)

Business cycle and financial cycle spillovers in the G7 countries   ScienceDirect Required
Antonakakis, N., M. Breitenlechner & J. Scharler (2015)

National Financial Frictions and International Business Cycle Synchronization   Acrobat Required
Rouillard, J-F. (2015)

Demand-Driven Propagation: Evidence from the Great Recession
Nguyen, H. (2015)

How Do Public Debt Cycles Interact with Financial Cycles?
Poghosyan, T. (2015)

Measuring Business Cycles with Structural Breaks and Outliers: Applications to International Data   Acrobat Required
Perron, P. & T. Wada (2015)

Business cycle (de)synchronization in the aftermath of the global financial crisis: implications for the Euro area   De Gruyter Journals Required
Bekiros, S., D.K. Nguyen, G.S. Uddin & B. Sjö (2015)

A contribution to the chronology of turning points in global economic activity (1980-2012)   ScienceDirect Required
Martínez-García, E., V. Grossman & A. Mack (2015)

Sharing a Ride on the Commodities Roller Coaster: Common Factors in Business Cycles of Emerging Economies
Fernandez, A., A. Gonzalez & D. Rodriguez (2015)

The international transmission of US shocks-Evidence from Bayesian global vector autoregressions   ScienceDirect Required
Feldkircher, M. & F. Huber (2015)

Channels of US Monetary Policy Spillovers into International Bond Markets   Acrobat Required
Albagli, E., L. Ceballos, S. Claro & D. Romero (2015)

Global Banking, Trade, and the International Transmission of the Great Recession   Acrobat Required
Enders, Z. & A. Peter (2015)

International Channels of Transmission of Monetary Policy and the Mundellian Trilemma
Rey, H. (2016)

The Micro Origins of International Business Cycle Comovement
di Giovanni, J., A.A. Levchenko & I. Mejean (2016)

International Transmissions of Monetary Shocks
Han, X. & S-J. Wei (2016)

Has Globalization Really Increased Business Cycle Synchronization?
Monnet, E. & D. Puy (2016)

International fiscal spillovers   ScienceDirect Required
Faccini, R., H. Mumtaz & P. Surico (2016)

Value-added trade and business cycle synchronization   ScienceDirect Required
Duval, R., N. Li, R. Saraf & D. Seneviratne (2016)

Banks' balance sheets and the international transmission of shocks   Acrobat Required
Krenz, J. (2016)

Monetary policy spillovers and currency networks in cross-border bank lending
Avdjiev, S. & E. Takats (2016)

International Business Cycles and Risk Sharing with Uncertainty Shocks and Recursive Preferences | Published   Acrobat Required   ScienceDirect Required
Kollmann, R. (2016)

Foreign Branches of US Global Banks: Geography, Balance Sheet Structure and Contagion   Acrobat Required
D'Avino, C. (2016)

International correlation of business cycles in a behavioral macroeconomic model   Acrobat Required
De Grauwe, P. & Y. Ji (2016)

The Decoupling of Emerging Economies: Theoretical and Empirical Puzzle   Wiley Interscience Required   SURVEY PAPER
Pesce, A. (2016)

The International Impact of Financial Shocks: A Global VAR and Connectedness Measures Approach   Acrobat Required
Smith, D. (2016)

Product Quality and International Price Dynamics   Acrobat Required
Arespa, M. & D. Gruber (2016)

Optimal Unemployment Insurance and International Risk Sharing   Acrobat Required
Moyen, S., N. Stahler, Nikolai; Winkler, Fabian (2016)

Finance and Synchronization   Acrobat Required
Cesa-Bianchi, A., J. Imbs & J. Saleheen (2016)

Does joint modelling of the world economy pay off? Evaluating global forecasts from a Bayesian GVAR   ScienceDirect Required
Dovern, J., M. Feldkircher & F. Huber (2016)

Multinational Firms and International Business Cycle Transmission
Cravino, J. & A.A. Levchenko (2016)

Globalization and monetary policy comovement: International evidence   ScienceDirect Required
Chatterjee, A. (2016)

Dynamics of global business cycle interdependence   ScienceDirect Required
Ductor, L. & D. Leiva-Leon (2016)

Finance and Synchronization   Acrobat Required
Cesa-Bianchi, A., J. Imbs & J. Saleheen (2016)

Real exchange rates and international co-movement: news-shocks and non-tradable goods with complete markets   Acrobat Required
Lambrias, K. (2016)

Macrofinancial History and the New Business Cycle Facts   Recommended!
Jorda, J., M. Schularick & A.M. Taylor (2016)

Abstract: In advanced economies, a century-long near-stable ratio of credit to GDP gave way to rapid financialization and surging leverage in the last forty years. This “financial hockey stick” coincides with shifts in foundational macroeconomic relationships beyond the widely-noted return of macroeconomic fragility and crisis risk. Leverage is correlated with central business cycle moments, which we can document thanks to a decade-long international and historical data collection effort. More financialized economies exhibit somewhat less real volatility, but also lower growth, more tail risk, as well as tighter real-real and real-financial correlations. International real and financial cycles also cohere more strongly. The new stylized facts that we discover should prove fertile ground for the development of a new generation of macroeconomic models with a prominent role for financial factors.

International spill-overs of uncertainty shocks: Evidence from a FAVAR   Acrobat Required
Kamber, G., O. Karagedikli, M. Ryan & T Vehbi (2016)

Bilateral Tax Treaties and GDP Comovement   Wiley Interscience Required
Sly, N. & C. Weber (2016)

Credit constraints and the international propagation of US financial shocks   ScienceDirect Required
Metiu, N., B. Hilberg & M. Grill (2016)

Trade, finance or policies: What drives the cross-border spill-over of business cycles?   ScienceDirect Required
Montinari, L. & L. Stracca (2016)

Business Cycles in Small, Open Economies: Evidence from Panel Data Between 1900 and 2013   Acrobat Required
Miyamoto, W. & T.L. Nguyen (2016)

International Transmissions of Monetary Shocks: Between a Trilemma and a Dilemma
Han, X. & S-J. Wei (2016)

World Shocks, World Prices, and Business Cycles: An Empirical Investigation
Fernandez, A., S. Schmitt-Grohe & M. Uribe (2016)

Is there really a Global Business Cycle? A Dynamic Factor Model with Stochastic Factor Selection   Acrobat Required
Berger, T. & L. Pozzi (2016)

International Transmission of Growth Shocks and the World Business Cycle   Acrobat Required
Yifan, S. & T. Abeysinghe (2016)

Crisis severity and the international trade network   Acrobat Required
Endrész, M. & F. Skudelny (2016)

Output and Inflation Co-movement: An Update on Business-Cycle Stylized Facts
Andrle, M., J. Bruha & S. Solmaz (2016)

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International Financial Institutions & System

Whither the World Bank and the IMF?
Krueger, A. (1997)

International Institutions for Reducing Global Financial Instability
Rogoff, K. (1999)

Basel Committee Compendium
Basel Committee on Banking Supervision (1997, revised 2001)

Reforming the International Financial Architecture: Limiting Moral Hazard and Containing Real Hazard   Adobe Acrobat Required
Mussa, M. (1999)

From the Washington Consensus to the New International Financial Architecture   Adobe Acrobat Required
Sakakibara, E. (1999)

Toward A New International Financial Architecture: A Practical Post-Asia Agenda   Recommended!
Eichengreen, B. (1999)

Abstract: The Asian financial crisis and the global economic turmoil that followed it have highlighted the need to avert financial crises and resolve them quickly if they do occur. This book addresses current concerns that existing institutional arrangements, including the Bretton Woods institutions, can no longer adequately cope with today's world of high capital mobility. It provides a critical assessment of competing proposals to better predict, forestall, and resolve international financial crises and outlines a practical and pragmatic agenda for reform. The recommendations are based on the belief that financial markets can malfunction, creating a compelling case for a financial safety net (and therefore a role for the IMF), but also creating problems of moral hazard that must be addressed.

The International Monetary Fund - Financial Medic to the World? A Primer on Mission, Operations, and Public Policy Issues   SURVEY PAPER
Lawrence J. McQuillan and Peter C. Montgomery (eds) (1999)

The Debate On The International Financial Architecture: Reforming The Reformers   Acrobat Required
Akyuz, Y. (2000)

Examining the Case for an Asian Monetary Fund   Acrobat Required
Rajan, R.S. (2000)

The Global Economy in Crises: How the Gold Standard Absorbed Shocks, 1880-1914
Neal, L., M.D. Weidenmier & K. Wandschneider (2000)

Time Present and Time Past: A Duration Analysis of IMF Program Spells | Published   Ingenta Select Required
Joyce, J.P. (2001/05)

Carrots and Sticks: a quick fix for IMF conditionality?
Bretton Woods Project (2001)

IMF Structural Conditionality: How Much is Too Much?   Acrobat Required
Goldstein, M. (2001)

The International Lender of Last Resort: How Large is Large Enough?
Jeanne, O. & C. Wyplosz (2001)

Should the IMF cease long term lending?
Bird, G. & P. Mosley (2001)

Abstract: As a long-term lender to low-income countries, the International Monetary Fund (IMF) also tackles problems of poverty and growth. Should the IMF withdraw from development finance leaving it up to donors and the World Bank, as critics suggest? Is it appropriate for the Fund to return to its traditional role? And could the World Bank provide more effective support for necessary structural adjustment?

Financial System Standards and Financial Stability - The Case of Basel Core Principles
Sundararajan, V., D. Marston & R. Basu (2001)

An Academic Response to Basel II   Recommended!   Acrobat Required
LSE FMG (2001)

Abstract: In our opinion the new Basel II proposals have failed to address many of the key failings of the global financial system, and may even present a destabilizing influence.

Comments On The New Basel Capital Accord: The Crucial Importance of a Conceptual Framework   Acrobat Required
Barnhill, Jr., T.M. &. K. Gleason (2001)

Basel Committee Working Papers: Risk Sensitive Approaches for Equity Exposures in the Banking Book for IRB Banks
Basel Committee (2001)
Abstract: The purpose of this paper prepared by the Models Task Force of the Basel Committee is to further the Committee's dialogue with the industry on the IRB treatment of equity exposures in the banking book.

The Origins of the Modern Financial Revolution: Responses to Impediments from Church and State in Western Europe, 1200-1600   Acrobat Required
Munro, J.H. (2001)

The Need for Competition in International Securities Regulation
Romano, R. (2001)

Working Paper on Pillar 3 - Market Discipline
Basel Committee (2001)

Will the proposed new Basel Capital Accord have a net negative effect on developing countries?
Griffith-Jones, S. & S. Spratt (2001)

IMF Conditionality and Country Ownership of Programs
Khan, M.S. & S. Sharma (2001)

The New Basel Capital Accord: The Devil Is in the (Calibration) Details
Kupiec, P.H. (2001)

The New International Financial Architecture and Africa
Le Gall, F. & S.M. Nsouli (2001)

The Development and Reform of the Modern International Financial System   Acrobat Required
Wray, L.R. (2001)

The Adam Klug Memorial Lecture: Haberler versus Nurkse: The Case for Floating Exchange Rates as an Alternative to Bretton Woods?
Bordo, M.D. & H. James (2001)

Does the IMF know best? Jamaica's response to financial crisis
Tennant, D. & C. Kirkpatrick (2001)

The International Dollar Standard and Sustainability of the U.S. Current Account Deficit   Acrobat Required
McKinnon, R. (2001)

The World Monetary System and External Relations of the EMU: Fasten your safety belts!
Weinrichter, N. (2001)

Twentieth Century Monetary Regimes in Canadian Perspective   Acrobat Required!
Harley, C.K. (2001)

Globalization, Crisis Contagion and the Reform of the International Financial Architecture   Acrobat Required
Karunaratne, N.D. (2002)

Why White, Not Keynes? Inventing the Post-War International Monetary System
Boughton, J.M. (2002)

A Capital Accord for Emerging Economies?
Powell, A. (2002)

Financial Crises and Reform of the International Financial System Recommended!
Fischer, S. (2002)

Abstract: Between December 1994 and March 1999, Mexico, Thailand, Indonesia, Korea, Malaysia, Russia and Brazil experienced major financial crises which were associated with massive recessions and extreme movements of exchange rates. Similar crises have threatened Turkey and Argentina (2000 and 2001) and most recently Brazil (again). This article discusses the reform of the international financial system with a focus on the role of the IMF - reforms directed at crisis prevention, and those intended to improve the responses to crises. The article concludes with an appraisal of what has been achieved, and what remains to be done to make the international financial system safer.

The Extended Panda's Thumb and a New Global Financial Architecture   Acrobat Required
Khan, H.A. (2002)

What Determines the Implementation of IMF-Supported Programs?
Ivanova, A., W. Mayer, A.T. Mourmouras & G.C. Anayiotos (2003)

Do IMF-Supported Programs Help Make Fiscal Adjustment More Durable?
Bulir, A. & S. Moon (2003)

On the International Financial Architecture: Insuring Emerging Markets
Caballero, R. (2003)

Exchange Rates in the Periphery and International Adjustment Under the Gold Standard | Published   Ingenta Select Required
Catao, L. & S. Solomou (2003)

Adoption of an IMF programme and debt rescheduling: An empirical analysis   ScienceDirect Required
Marchesi, S. (2003)

The Future of the IMF   Ingenta Select Required
Caballero, R.J. (2003)

The World Bank of the Future   Ingenta Select Required
Banerjee, A.V. & R. He (2003)

International institutional lending arrangements to sovereign borrowers   ScienceDirect Required
Plaut, S.E. & A.L. Melnik (2003)

What strategies are viable for developing countries today? The World Trade Organization and the shrinking of ‘development space’   Adobe Acrobat Required
Wade, R.H. (2003)

Currency competition: a partial vindication of Hayek | Published   ScienceDirect Required
Martin, A. & S.L. Schreft (2003/06)

Survival of fittest   Adobe Acrobat Required
Raj, M. (2003)

Paper or Gold   Adobe Acrobat Required
Raj, M. (2003)

An Essay on the Revived Bretton Woods System
Dooley, M.P., D. Folkerts-Landau & P. Garber (2003)

The Past as Future? The Contribution of Financial Globalization to the Current Crisis of Neo-Liberalism as a Development Strategy   Adobe Acrobat Required
Felix, D. (2003)

Reforming the global financial system   Acrobat Required
Aizenman, J. (2003)

International Lending of Last Resort and Moral Hazard: A Model of IMF's Catalytic Finance | Published   ScienceDirect Required
Corsetti, G., B. Guimaraes & N. Roubini (2003/06)

The Revived Bretton Woods System: The Effects of Periphery Intervention and Reserve Management on Interest Rates & Exchange Rates in Center Countries
Dooley, M.P., D. Folkerts-Landau & P. Garber (2004)

Global Economic Governance at a Crossroads: Replacing the G-7 with the G-20
Bradford, C. Jr. & H. Linn (2004)

Global Imbalances and the Lessons of Bretton Woods | Published
Eichengreen, B. (2004/06)

The IMF and the Force of History: Ten Events and Ten Ideas that Have Shaped the Institution
Boughton, J.M. (2004)

Instability in Exchange Rates of the World Leading Currencies: Implications of a Spatial Competition Model among Central Banks   Acrobat Required
Engelmann, D., J. Hanousek & E. Kocenda (2004)

Global Monetary Policy Under a Dollar Standard | Published   ScienceDirect Required
Devereux, M.B., K. Shi & J. Xu (2004/07)

A key currency and a local currency? A simple theoretical model and its welfare implications   Acrobat Required
Kobayashi, K. (2004)

The US Current Account Deficit and Economic Development: Collateral for a Total Return Swap
Dooley, M.P., D. Folkerts-Landau & P.M. Garber (2004)

Basel II and Developing Countries: Sailing through the Sea of Standards
Powell, A. (2004)

An analysis of IMF-induced moral hazard   ScienceDirect Required
Döbeli, B. & P. Vanini (2004)

Bank Capital and Loan Loss Reserves under Basel II: Implications for Emerging Countries
Powell, A., G. Majnoni & M. Miller (2004)

Does Compliance with Basel Core Principles Bring Any Measurable Benefits? | Published
Podpiera, R. (2004/06)

A Model of the IMF as a Coinsurance Arrangement
Chami, R., S. Sharma & I. Shim (2004)

Who Runs the IFIs?
Faini, R. & E. Grilli (2004)

Some Fundamental Inadequacies of the Washington Consensus: Misunderstanding the Poor by the Brightest   Acrobat Required
Woo, W. (2004)

Implicit Transfers in IMF Lending, 1973-2003
Zettelmeyer, J. & P. Joshi (2005)

Will the Bretton Woods 2 Regime Unravel Soon? The Risk of Hard Landing in 2005-2006
Roubini, N. & B. Setser (2005)

Measuring Market Integration: Foreign Exchange Arbitrage and The Gold Standard, 1879-1913   Ingenta Select Required
Canjels, E., G. Prakash-Canjels & A.M. Taylor (2005)

Interest rate interactions in the classical gold standard, 1880–1914: was there any monetary independence?   ScienceDirect Required
Bordo, M.D. & R. MacDonald (2005)

Efficiency and Legitimacy: Trade-Offs in IMF Governance
Cottarelli, C. (2005)

Does the World Need a Universal Financial Institution?
Boughton, J.M. (2005)

The case for a world currency   ScienceDirect Required
Mundell, R. (2005)

Trapped by the international dollar standard   ScienceDirect Required
McKinnon, R.I. (2005)

Stabilizing the international monetary system   ScienceDirect Required
Kenen, P.B. (2005)

Credit Risk Measurement Under Basel II: An Overview and Implementation Issues for Developing Countries
Stephanou, C. & J.C. Mendoza (2005)

The Need for Institutional Changes in the Global Financial System: An Analytical Framework
Claessens, S. & G.R.D. Underhill (2005)

Developing country representation and governance of the International Monetary Fund   ScienceDirect Required
Rapkin, D.P. & J.R. Strand (2005)

Interest Rates, Exchange Rates and International Adjustment
Dooley, M.P., D. Folkerts-Landau & P.M. Garber (2005)

Stuck on Gold: Real Exchange Rate Volatility and the Rise and Fall of the Gold Standard | Published   ScienceDirect Required
Chernyshoff, N., D.S. Jacks & A.M. Taylor (2005/09)

Living with Global Imbalances: A Contrarian View | Published   ScienceDirect Required   Acrobat Required
Cooper, R.N. (2005/06)

Pillar 1 vs. Pillar 2 Under Risk Management
Pelizzon, L. & S.M. Schaffer (2005)

International Financial Instability in a World of Currencies Hierarchy   Acrobat Required
Terzi, A. (2005)

American in the Shadows: Harry Dexter White and the Design of the International Monetary Fund
Boughton, J.M. (2006)

A Bank-Fund projection framework with CGE features   ScienceDirect Required
Jensen, H.T. & F. Tarp (2006)

The International Monetary Fund in a Time of Crisis: A Review of Stanley Fischer's IMF Essays from a Time of Crisis: The International Financial System, Stabilization, and Development   Ingenta Select Required
Conway, P. (2006)

Reforming the IMF for the 21st Century   CONFERENCE VOLUME
Edwin M. Truman (editor) (2006)

Abstract: The experts on the International Monetary Fund (IMF) who have written the papers in this volume all acknowledge the need for reform, and some argue forcefully that the IMF has become weak and ineffective and needs to refocus on its core mission. The papers cover the Fund’s role in making and enforcing the rules of the international monetary system; its governance, including voting rights, representation on the Executive Board, and choice of management; its lending; and its financial resources.

Two British Initiatives for IMF Lending to its Members, 1960–1962
Polak, J.J. (2006)

Proposal for a Common Currency among Rich Democracies (Paper 1); One World Money, Then and Now (Paper 2)   Acrobat Required
Cooper, R.N. (Paper 1) & Bordo, M. & H. James (Paper 2) (2006)

Harmonization without representation: Small states, the Basel Committee, and the WTO   ScienceDirect Required
Grynberga, R. & S. Silva (2006)

The Fallacy of the Revised Bretton Woods Hypothesis: Why Today's International Financial System Is Unsustainable   Acrobat Required
Palley, T.I. (2006)

Banking on the principles: compliance with Basel Core Principles and bank soundness
Demirguc-Kunt, A., E. Detragiache & T. Tressel (2006)

The resolution of global imbalances: Soft landing in the North, sudden stop in emerging markets?   ScienceDirect Required
Calvo, G. & E. Talvi (2006)

Evaluating the impact of IMF programs: A comparison of matching and instrumental-variable estimators
Atoyan, R. & P. Conway (2006)

Principal-agent problems in international organizations
Vaubel, R. (2006)

IMF quotas: Constructing an international organization using inferior building blocks
Bird, G. & D. Rowlands (2006)

Reviving the Bank and Fund
Meltzer, A.H. (2006)

Beyond the IMF
Kapur, D. & R. Webb (2006)

Global Imbalances and Low Interest Rates: An Equilibrium Model vs. A Disequilibrium Reality
Frankel, J. (2006)

The Incidence and Effectiveness of Prior Actions in IMF-Supported Programs
Thomas, A.H. & U. Ramakrishnan (2006)

Promises Made, Promises Broken: A Model of IMF Program Implementation   Wiley Interscience Required
Joyce, J.P. (2006)

Macroeconomic policies and participation in IMF programs   ScienceDirect Required
Evrensel, A.Y. & J.S. Kim (2006)

How Does the Global Economic Environment Influence the Demand for IMF Resources
Elekdag, S. (2006)

Do External Interventions Work? The Case of Trade Reform Conditions in IMF Supported Programs | Published   ScienceDirect Required
Wei, S-J. & Z. Zhang (2006/10)

A Stable International Monetary System Emerges: Inflation Targeting is Bretton Woods, Reversed | Published   ScienceDirect Required
Rose, A.K. (2006/07)

How can IMF policy eliminate country moral hazard and account for externalities?   ScienceDirect Required
Weithöner, T. (2006)

What kind of capital flows does the IMF catalyze and when?   Acrobat Required
Díaz-Cassou, J., A. García-Herrero & L. Molina (2006)

On Current Account Surpluses and the Correction of Global Imbalances
Edwards, S. (2007)

Financial Integration, Financial Deepness and Global Imbalances | Published
Mendoza, E.G., V. Quadrini & J-V. Rios-Rull (2007/09)

Pricing Fund Liquidity Provision
Rossi, M. (2007)

Does the IMF cause moral hazard and political business cycles? Evidence from panel data   Acrobat Required
Dreher, A. & R. Vaubel (2007)

Unconditional IMF Financial Support and Investor Moral Hazard
Kim, J.I. (2007)

IMF programs and reforms — inhibition or encouragement?   ScienceDirect Required
Dreher, A. & S.M. Rupprecht (2007)

Intra-Day Seasonality in Foreign Exchange Market Transactions   Acrobat Required
Cotter, J. & K. Dowd (2007)

IMF Drawing Programs: Participation Determinants and Forecasting
Cerutti, E. (2007) The IMF: A Bird's Eye View of Its Role and Operations   Wiley Interscience Required
Park, C-H. & S.H. Irwin (2007)

Reform of the International Monetary Fund   Recommended!
Kenen, P.B. (2007)

Abstract: The International Monetary Fund’s purpose and scope have changed dramatically since its founding after World War II, sparking recent calls for reform. This new Council Special Report offers a balanced assessment of reform proposals and argues that such efforts deserve the support of the United States.

IMF concern for reputation and conditional lending failure: Theory and empirics   ScienceDirect Required
Marchesi, S. & L. Sabani (2007)

East Asia and Global Imbalances: Saving, Investment, and Financial Development
Ito, H. & M. Chinn (2007)

Operational Risk--The Sting is Still in the Tail but the Poison Depends on the Dose
Jobst, A. (2007)

Dollar standards in the dollar era   ScienceDirect Required
Mundell, R. (2007)

Global imbalances and exchange rate adjustment   ScienceDirect Required
Rogoff, K. (2007)

Estimating systemic risk in the international financial system   ScienceDirect Required
Bartram, S.M., G.W. Brown & J.E. Hund (2007)

Merry Sisterhood or Guarded Watchfulness? Cooperation Between the International Monetary Fund and the World Bank   Acrobat Required
Fabricius, M. (2007)

Currency Undervaluation and Sovereign Wealth Funds: A New Role for the World Trade Organization   Acrobat Required
Mattoo, A. & A. Subramanian (2008)

An Equilibrium Model of "Global Imbalances" and Low Interest Rates   Ingenta Select Required
Caballero, R.J.; E. Farhi & P-O. Gourinchas (2008)

IMF bailouts and moral hazard   ScienceDirect Required
Lee, J-W. & K. Shin (2008)

Bank Recycling of Petro Dollars to Emerging Market Economies During the Current Oil Price Boom
Wiegand, J. (2008)

Beyond the World Bank Agenda
Stein, H. (2008)

Global Rebalancing with Gravity: Measuring the Burden of Adjustment
Dekle, R., J. Eaton & S. Kortum (2008)

The adjustment of global external balances: does partial exchange rate pass-through to trade prices matter? | Published   Acrobat Required   ScienceDirect Required
Gust, C., S. Leduc & N. Sheets (2008)

World Bank Conditional Loans and Private Investment in Recipient Countries   ScienceDirect Required
Agostino, M. (2008)

Dealing with the Financial Turmoil: Contingent Risks, Policy Challenges and the Role of the IMF   Wiley Interscience Required
Lipsky, J. (2008)

Assessing the Emerging Global Financial Architecture: Measuring the Trilemma's Configurations over Time | Published   ScienceDirect Required
Aizenman, J., M.D. Chinn & H. Ito (2008/10)

Sovereign Wealth Funds: Stylized Facts about their Determinants and Governance | Published   Wiley Interscience Required
Aizenman, J. & R. Glick (2008/09)

On What Terms is the IMF Worth Funding?
Truman, E.M. (2008)

Global Imbalances and Financial Fragility | Published   Ingenta Select Required
Caballero, R.J. & A. Krishnamurthy (2009)

Bretton Woods II Still Defines the International Monetary System
Dooley, M.P., D. Folkerts-Landau & P.M. Garber (2009)

Global Imbalances: The Role of Emerging Asia | Published   Wiley Interscience Required
Cova, P., M. Pisani & A. Rebucci (2009)

Global Imbalances: The Role of Non-Tradable Total Factor Productivity in Advanced Economies
Cova, P., M. Pisani, N. Batini & A. Rebucci (2009)

Global Imbalances and Petrodollars
Arezki, R. & F. Hasanov (2009)

The Real and Financial Implications of the Global Saving Glut: A Three-Country Model   Acrobat Required
Gossé, J.B. (2009)

Out of the Box Thoughts about the International Financial Architecture
Eichengreen, B.J. (2009)

The Evolution of the Term 'Washington Consensus'   Wiley Interscience Required
Marangos, J. (2009)

Why did Countries Adopt the Gold Standard? Lessons from Japan
Mitchener, K.J., M. Shizume & M.D. Weidenmier (2009)

Global Imbalances, Productivity Differentials, and Financial Integration
Chakraborty, S. & R. Dekle (2009)

Do Differences in Financial Development Explain the Global Pattern of Current Account Imbalances?   Wiley Interscience Required
Gruber, J. & S. Kamin (2009)

A Tractable Model of Precautionary Reserves, Net Foreign Assets, or Sovereign Wealth Funds
Carroll, C.D. & O. Jeanne (2009)

Setting up a Sovereign Wealth Fund: Some Policy and Operational Considerations
Das, U.S., Y. Lu, C.B. Mulder & A.N.R. Sy (2009)

Global imbalances, exchange rates adjustment and the crisis: Implications from network analysis   ScienceDirect Required
Fracasso, A. & S. Schiavo (2009)

Reshaping the International Monetary Architecture: Lessons from Keynes’ Plan
Piffaretti, N.F. (2009)

Global rebalancing in a three-country model
Engler, P. (2009)

Bank Capital Requirements, Business Cycle Fluctuations and the Basel Accords: A Synthesis   Wiley Interscience Required   SURVEY PAPER
Drumond, I. (2009)

Credit Derivatives: Systemic Risks and Policy Options?
Kiff, J., J.A. Elliott, E.G. Kazarian, J.G. Scarlata & C. Spackman (2009)

Current Account Fact and Fiction
Backus, D., E. Henriksen, F. Lambert & C. Telmer (2009)

Does the IMF Help or Hurt? The Effect of IMF Programs on the Likelihood and Outcome of Currency Crises   ScienceDirect Required
Dreher, A. & S. Walter (2009)

Global Imbalances and the Financial Crisis: Products of Common Causes
Obstfeld, M. & K. Rogoff (2009)

IMF and economic reform in developing countries   ScienceDirect Required
Abbott, P., T.B. Andersen & F. Tarp (2010)

The "Other" Imbalance and the Financial Crisis   Recommended!
Caballero, R.J. (2010)

Abstract: One of the main economic villains before the crisis was the presence of large “global imbalances.” The concern was that the U.S. would experience a sudden stop of capital flows, which would unavoidably drag the world economy into a deep recession. However, when the crisis finally did come, the mechanism did not at all resemble the feared sudden stop. Quite the opposite, during the crisis net capital inflows to the U.S. were a stabilizing rather than a destabilizing source. I argue instead that the root imbalance was of a different kind: The entire world had an insatiable demand for safe debt instruments that put an enormous pressure on the U.S. financial system and its incentives (and this was facilitated by regulatory mistakes). The crisis itself was the result of the negative feedback loop between the initial tremors in the financial industry created to bridge the safe-assets gap and the panic associated with the chaotic unraveling of this complex industry. Essentially, the financial sector was able to create “safe” assets from the securitization of lower quality ones, but at the cost of exposing the economy to a systemic panic. This structural problem can be alleviated if governments around the world explicitly absorb a larger share of the systemic risk. The options for doing this range from surplus countries rebalancing their portfolios toward riskier assets, to private-public solutions where asset-producer countries preserve the good parts of the securitization industry while removing the systemic risk from the banks’ balance sheets. Such public-private solutions could be designed with fee structures that could incorporate all kind of too-big- or too-interconnected-to-fail considerations.

The Saving Glut Explanation of Global Imbalances: the Role of Underinvestment   Acrobat Required
Corneli, F. (2010)

After the Crisis: Lower Consumption Growth but Narrower Global Imbalances?
Mody, A. & F. Ohnsorge (2010)

Risk and Global Economic Architecture: Why Full Financial Integration May Be Undesirable
Stiglitz, J.E. (2010)

The Global Crisis and the Future of the Dollar: Toward Bretton Woods III?   Acrobat Required
Bibow, J. (2010)

Reforming the Global Reserve Regime: The Role of a Substitution Account   Wiley Interscience Required
Kenen, P.B. (2010)

The China-US co-dependency and the elusive costs of growth rebalancing   Acrobat Required
Bonatti, L. & A. Fracasso (2010)

The world price of home bias   ScienceDirect Required
Lau, S.T., L. Ng & B. Zhang (2010)

Global Imbalances Before and After the Global Crisis
Serven, L. & H. Nguyen (2010)

Can Global Liquidity Forecast Asset Prices?
Darius, R. (2010)

The G-20 and International Financial Institution Governance   Acrobat Required
Edwin M. Truman (PIIE) (2010)

Firm values and sovereign wealth fund investments   ScienceDirect Required
Dewenter, K.L., X. Han & P.H. Malatesta (2010)

Bretton-Woods systems, old and new, and the rotation of exchange-rate regimes   Acrobat Required
Hall, S., G. Hondroyiannis, P.A.V.B. Swamy & G. Tavlas (2010)

A Growth Model of Global Imbalances   Acrobat Required
Artige, L. & L. Cavenaile (2010)

Investment Objectives of Sovereign Wealth Funds - A Shifting Paradigm
Kunzel, P., Y. Lu, I. Petrova & J. Pihlman (2011)

Exorbitant Privilege and Exorbitant Duty   Acrobat Required
Gourinchas, P-O., H. Rey & N. Govillot (2011)

Designing domestic institutions for international monetary policy cooperation: A Utopia?   ScienceDirect Required
Bilbiie, F.O. (2011)

Determinants of Investment by the Norwegian Sovereign Wealth Fund: GDP vs. Institutions
Caner, M., T. Caner & T.J. Grennes (2011)

Harnessing windfall revenues: Optimal policies for resource-rich developing economies   Acrobat Required
van der Ploeg, F. & A.J. Venables (2011)

The financial trilemma   ScienceDirect Required
Schoenmaker, D. (2011)

Trilemma Stability and International Macroeconomic Archetypes in Developing Economies | Published   ScienceDirect Required   Acrobat Required
Popper, H., A. Mandilaras & G. Bird (2011)

What International Monetary System for a Fast-Changing World Economy?
Benassy-Quere, A. & J. Pisani-Ferry (2011)

The End of Chimerica   Wiley Interscience Required
Ferguson, N. & M. Schularick (2011)

A calibrated Growth Model of Global Imbalances   Acrobat Required
Artige, L. & L. Cavenaile (2011)

The Debate about the Revived Bretton-Woods Regime: A Survey and Extension of the Literature | Published   Acrobat Required   Wiley Interscience Required
Hall, S. & G.S. Tavlas (2011/13)

Multipolarity, Perceptions, and the Tragedy of 1914   Wiley Interscience Required
Christensen, T.J. & J.L. Snyder (2011)

Shifts in portfolio preferences of international investors: an application to sovereign wealth funds | Published   Acrobat Required   Wiley Interscience Required
Sá, F. & F. Viani (2011/13)

Precautionary Savings and Global Imbalances in World General Equilibrium
Sandri, D. (2011)

Sovereign Wealth Funds: Is Asia Different?   Acrobat Required
Truman, E.M. (2011)

Financial intermediation and the international business cycle: The case of small countries with big banks   Acrobat Required
Kamber, G. & C. Thoenissen (2011)

Development Banks: Role and Mechanisms to Increase their Efficiency
Gutierrez, E., H.P. Rudolph, T. Homa & E.B. Beneit (2011)

Possible Unintended Consequences of Basel III and Solvency II
Al-Darwish, A.I., M. Hafeman, G. Impavido, M. Kemp & P. O'Malley (2011)

Capital Regulation and Tail Risk
Perotti, E., L. Ratnovski & R. Vlahu (2011)

What international monetary system for a fast-changing world economy   Acrobat Required
Benassy-Quere, A. & J. Pisani-Ferry (2011)

Reform of the international monetary system: Some concrete steps
Yu, Y., A. Benassy-Quere & J. Pisani-Ferry (2011)

Financial Intermediation, International Risk Sharing, and Reserve Currencies   Acrobat Required
Maggiori, M. (2011)

Global Economic Governance: IMF Quota Reform
Virmani, A. (2011)

Business Cycle and Bank Capital Regulation: Basel II Procyclicality   Acrobat Required
Liu, G. & N.E. Seeiso (2011)

International Liquidity: The Fiscal Dimension
Obstfeld, M. (2011)

A Forensic Analysis of Global Imbalances
Chinn, M.D., B. Eichengreen & H. Ito (2011)

Role Reversal in Global Finance
Prasad, E.S. (2011)

Does G-4 Liquidity Spill Over?
Psalida, L.E. & T. Sun (2011)

Another Look at the Underlying Cause of the End of the Bretton Woods System: International Price Differences Perspective   Wiley Interscience Required
Fukumoto, Y. (2011)

Global Rebalancing: Implications for Low-Income Countries
Yang, Y. (2011)

Anticipating the Great Depression? Gustav Cassel's Analysis of the Interwar Gold Standard
Irwin, D.A. (2011)

The International Monetary System: Living with Asymmetry
Obstfeld, M. (2011)

An equilibrium model of 'global imbalances' revisited   Acrobat Required
Körner, F.M. (2012)

The impact of Sovereign Wealth Fund investments on the performance of listed companies   Acrobat Required
Dinh, B.N. (2012)

Is there a Beijing Consensus on International Macroeconomic Policy?   ScienceDirect Required
Bird, G., A. Mandilaras & H. Popper (2012)

Monitoring Systemic Risk Based on Dynamic Thresholds
Lund-Jensen, K. (2012)

Global safe assets
Gourinchas, P-O. & O. Jeanne (2012)

The Demand for Liquid Assets, Corporate Saving, and Global Imbalances
Bacchetta, P. & K. Benhima (2012)

The Supply and Demand for Safe Assets
Gorton, G.B. & G. Ordonyez (2013)

The "Impossible Trinity" Hypothesis in an Era of Global Imbalances: Measurement and Testing   Wiley Interscience Required
Aizenman, J., M.D. Chinn & H. Ito (2013)

Financial integration, capital misallocation and global imbalances   ScienceDirect Required
Benhima, K. (2013)

The Response Speed of the International Monetary Fund   Wiley Interscience Required
Mody, A. & D. Saravia (2013)

Banking Globalization, Transmission, and Monetary Policy Autonomy
Goldberg, L.S. (2013)

Addressing Interconnectedness: Concepts and Prudential Tools
Arregui, N., M. Norat, A. Pancorbo, J.G. Scarlata, E. Holttinen, F. Melo, J. Surti, C. Wilson, R. Wehrhahn & M. Yanase (2013)

Macro-prudential policies to mitigate financial system vulnerabilities   ScienceDirect Required
Claessens, S., S.R. Ghosh & R. Mihet (2013)

The International Monetary System: Where Are We and Where Do We Need to Go?
Mohan, R., M.D. Patra ∓ M. Kapur (2013)

Sovereign Wealth Funds: Aspects of Governance Structures and Investment Management
Al-Hassan, A., M.G. Papaioannou, M. Skancke & C.C. Sung (2013)

Comparative Advantage, Service Trade, and Global Imbalances   ScienceDirect Required
Barattieri, A. (2013)

The Benefits of International Policy Coordination Revisited
Benes, J., M. Kumhof, D. Laxton, D. Muir & S. Mursula (2013)

The impact of real exchange rates adjustments on global imbalances: A multilateral approach   ScienceDirect Required
Allegret, J-P. & A. Sallenave (2014)

Sectoral interdependence and business cycle synchronization in small open economies
Bergholt, D. & T. Sveen (2014)

Corporate Saving in Global Rebalancing   Acrobat Required
Bacchetta, P. & K. Benhima (2014)

On the use of Monetary and Macroprudential Policies for Small Open Economies
Ozkan, F.G. & D.F. Unsal (2014)

Global Imbalances and External Adjustment after the Crisis
Lane, P.R. & G-M. Milesi-Ferretti (2014)

The Revived Bretton Woods System's First Decade
Dooley, M.P., D. Folkerts-Landau & P.M. Garber (2014)

Global Imbalances and the External Solvency of Nations   Acrobat Required
Bleaney, M. & M. Tian (2014)

International Finance: Can the System Be Saved?
Boughton, J.M. (2014)

The international monetary and financial system: a capital account historical perspective
Borio, C., H. James & H.S. Shin (2014)

The international monetary and financial system: its Achilles heel and what to do about it
Borio, C. (2014)

Membership has its Privileges - The Effect of Membership in International Organizations on FDI   ScienceDirect Required
Dreher, A., H. Mikosch & S. Voigt (2014)

The multivariate option iPoD framework: assessing systemic financial risk   Acrobat Required
Matros, P. & J. Vilsmeier (2014)

Shedding Light on Shadow Banking
Harutyunyan, A., A. Massara, G. Ugazio, G. Amidzic & R. Walton (2014)

Testing the Global Banking Glut Hypothesis   Acrobat Required
Punzi, M.T. & K. Kauko (2015)

International capital markets structure, preferences and puzzles: A "US-China World"   ScienceDirect Required
Caporale, G.M., M. Donadelli & A. Varani (2015)

Global imbalances, current account rebalancing and exchange rate adjustments   ScienceDirect Required
Arslan, Y., M. Kilinc & M.I. Turhan (2015)

Rise of the Fiduciary State: A Survey of Sovereign Wealth Fund Research   Wiley Interscience Required   SURVEY PAPER
Megginson, W.L. & V. Fotak (2015)

Reforming the International Monetary System in the 1970s and 2000s: Would a Special Drawing Right Substitution Account Have Worked?   Wiley Interscience Required
McCauley, R.N. & C.R. Schenk (2015)

Policy tradeoffs in an open economy and the role of G-20 in global macroeconomic policy coordination   Acrobat Required
Sengupta, R. & A. Sen Gupta (2015)

The International Price System
Gopinath, G. (2015)

Global Imbalances and Currency Wars at the ZLB
Caballero, R.J., E. Farhi & P-O. Gourinchas (2015)

The Federal Reserve: The Weakest Lender of Last Resort Among Its Peers?   Wiley Interscience Required
Scott, H.S. (2015)

Insights into the IMF bailout debate: A review and research agenda   ScienceDirect Required   SURVEY PAPER
Li, L., M. Sy & A. McMurray (2015)

The International Monetary Fund: 70 Years of Reinvention | Published
Reinhart, C.M. & C. Trebesch (2015/16)

Trade Integration, Income Divergence, and Global Imbalances
Zhang, H. (2015)

Have Global Value Chains Contributed to Global Imbalances?   Acrobat Required
Haltmaier, J. (2015)

The Elephant In The Ground: Managing Oil And Sovereign Wealth   ScienceDirect Required
van den Bremer, T., F. van der Ploeg & S. Wills (2016)

From Global Savings Glut to Financing Infrastructure
Arezki, R., P. Bolton, S. Peters, F. Samama & J. Stiglitz (2016)

The IMF's Unmet Challenges
Eichengreen, B. & N. Woods (2016)

The New Role for the World Bank
Clemens, M.A. & M. Kremer (2016)

The World Bank: Why It Is Still Needed and Why It Still Disappoints
Ravallion, M. (2016)

Sustainable international monetary policy cooperation   Acrobat Required
Fujiwara, I., T. Kam & T. Sunakawa (2016)

Trilemma or Dilemma: Inspecting the Heterogeneous Response of Local Currency Interest Rates to Foreign Rates
Ricci, L.A. & W. Shi (2016)

A Model of the International Monetary System   Acrobat Required
Maggiori, M. & E. Farhi (2016)

Emergence of Asia: Reforms, Corporate Savings, and Global Imbalances
Fan, J. & S. Kalemli-Ozcan (2016)

Global imbalances in the XIX, XX and the XXI centuries   ScienceDirect Required
Eugeni, S. (2016)

The Economic Impact of Short-term IMF Engagement in Low-Income Countries   ScienceDirect Required
Gündüz, Y.B. (2016)

Global Imbalances Revisited: The Transfer Problem and Transport Costs in Monopolistic Competition   Acrobat Required
Gancia, G. & P. Epifani (2016)

Rates of time preference and the current account in a dynamic model of perpetual youth: Should "global imbalances" always be balanced?   Acrobat Required
Hamada, K. & M. Sakuragawa (2016)

Arrears to the IMF - A Ghost of the Past?
Oeking, A. & M.A. Sumlinski (2016)

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Open Economy Macroeconomics

Foundations of International Macroeconomics | About   Recommended!
Obstfeld, M. & K. Rogoff (1995)

Abstract: Foundations of International Macroeconomics is an innovative text that offers the first integrative modern treatment of the core issues in open economy macroeconomics and finance. With its clear and accessible style, it is suitable for first-year graduate macroeconomics courses as well as graduate courses in international macroeconomics and finance. Each chapter incorporates an extensive and eclectic array of empirical evidence. For the beginning student, these examples provide motivation and aid in understanding the practical value of the economic models developed. For advanced researchers, they highlight key insights and conundrums in the field. Topic coverage includes intertemporal consumption and investment theory, government spending and budget deficits, finance theory and asset pricing, the implications of (and problems inherent in) international capital market integration, growth, inflation and seignorage, policy credibility, real and nominal exchange rate determination, and many interesting special topics such as speculative attacks, target exchange rate zones, and parallels between immigration and capital mobility. Most main results are derived both for the small country and world economy cases. The first seven chapters cover models of the real economy, while the final three chapters incorporate the economy's monetary side, including an innovative approach to bridging the usual chasm between real and monetary models.

Abstract: Recent research in international business cycles based upon complete markets has found that international consumption correlations are lower than predicted by the standard risk-sharing implications of these models. In this paper, I use regression tests to ask whether two different types of explanations can help explain this result. First, I consider whether non-separabilities between tradeables and non-tradeable leisure or goods can explain the puzzle. Surprisingly, non-separabilities explain only a tiny fraction of the variation in tradeables consumption across countries. Furthermore, risk-sharing in tradeables is rejected. Second, I examine the effects of capital market restrictions on aggregate consumption risk-sharing by countries. While rejections of risk-sharing are stronger for countries facing more severe capital market restrictions, risk-sharing is still rejected for the unrestricted group of countries. Therefore, risk-sharing does not appear to be resolved by either explanation alone. However, when I allow for both non-separabilities and certain market restrictions, risk-sharing among unrestricted countries is not rejected. This evidence suggests that a combination of these two effects may be necessary to explain consumption risk-sharing across countries.

New Directions for Stochastic Open Economy Models   Recommended!   Acrobat Required
Obstfeld, M. & K. Rogoff (2000)

Abstract: The paper develops a simple stochastic new open economy macroeconomic model based on sticky nominal wages. Explicit solution of the wage-setting problem under uncertainty allows one to analyze the effects of the monetary regime on welfare, expected output, and the expected terms of trade. Despite the potential interplay between imperfections due to sticky wages and monopoly, the optimal monetary policy rule has a closed-form solution. To motivate our model, we show that observed correlations between terms of trade and exchange rates are more consistent with our traditional assumptions about nominal rigidities than with a popular alternative based on local-currency pricing.

The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?   Recommended!
Obstfeld, M. & K. Rogoff (2000)

Abstract: The central claim in this paper is that by explicitly introducing costs of international trade (narrowly, transport costs but more broadly, tariffs, nontariff barriers and other trade costs), one can go far toward explaining a great number of the main empirical puzzles that international macroeconomists have struggled with over twenty-five years. Our approach elucidates J. McCallum's home bias in trade puzzle, the Feldstein-Horioka saving-investment puzzle, the French-Poterba equity home bias puzzle, and the Backus-Kehoe- Kydland consumption correlations puzzle. That one simple alteration to an otherwise canonical international macroeconomic model can help substantially to explain such a broad arrange of empirical puzzles, including some that previously seemed intractable, suggests a rich area for future research. We also address a variety of international pricing puzzles, including the purchasing power parity puzzle emphasized by Rogoff, and what we term the exchange-rate disconnect puzzle.' The latter category of riddles includes both the Meese-Rogoff exchange rate forecasting puzzle and the Baxter-Stockman neutrality of exchange rate regime puzzle. Here although many elements need to be added to our extremely simple model, we can still show that trade costs play an essential role.

Incomplete markets, borrowing constraints, and the foreign exchange risk premium   Adobe Acrobat Required!
Leduc, S. (2000)

Monetary Policy for an Open Economy: An Alternative Framework with Optimizing Agents and Sticky Prices
McCallum, B.T. & E. Nelson (2001)

International Dimensions of Optimal Monetary Policy | Published   Recommended!
Corsetti, G. & P. Pesenti (2001/2005)

Abstract: This paper provides a baseline general equilibrium model of optimal monetary policy among interdependent economies with monopolistic firms and nominal rigidities. An inward-looking policy of domestic price stabilization is not optimal when firms’ markups are exposed to currency fluctuations. Such a policy raises exchange rate volatility, leading foreign exporters to charge higher prices vis-à-vis increased uncertainty in the export market. As higher import prices reduce the purchasing power of domestic consumers, optimal monetary rules trade off a larger domestic output gap against lower consumer prices. Optimal rules in a world Nash equilibrium lead to less exchange rate volatility relative to both inward-looking rules and discretionary policies, even when the latter do not suffer from any inflationary (or deflationary) bias. Gains from international monetary cooperation are related in a non-monotonic way to the degree of exchange rate pass-through.

Patience, persistence and welfare costs of incomplete markets in open economies | Published   Acrobat Required   ScienceDirect Required
Kim, J., S.H. Kim & A. Levin (2001/2003)

Abstract: In this paper, we investigate the welfare implications of alternative financial market structures in a two-country endowment economy model. In particular, we obtain an analytic expression for the expected lifetime utility of the representative household when sovereign bonds are the only internationally traded asset, and we compare this welfare level with that obtained under complete asset markets. The welfare cost of incomplete markets is negligible if agents are very patient and shocks are not very persistent, but this cost is dramatically larger if agents are relatively impatient and shocks are highly persistent. For realistic cases in which agents are very patient and shocks are highly persistent (that is, the discount factor and the first-order autocorrelation are both near unity), the welfare cost of incomplete markets is highly sensitive to the specific values of these parameters. Finally, using a non-linear solution algorithm, we confirm that a two-country production economy with endogenous labor supply has qualitatively similar welfare properties.

Dollarization of Liabilities, Net Worth Effects, and Optimal Monetary Policy   Acrobat Required
Cespedes, L.F., R. Chang & A. Valesco (2001)

Who Bears the Burden of the Corporate Tax in The Open Economy?
Gravelle, J. & K. Smetters (2001)

Government budgetary policies, economic growth, and currency substitution in a small open economy
Holman, J.A. (2001)

Monetary Policy in the Open Economy Revisited: Price Setting and Exchange Rate Flexibiity   Acrobat Required
Devereux, M. & C. Engel (2001)

The 'New Keynesian' Phillips Curve: Closed Economy vs. Open Economy
Razin, A. & Y. Chi-Wa (2001)

International Macroeconomics: Beyond the Mundell-Fleming Model   SURVEY PAPER
Obstfeld, M. (2001)

Home bias and high turnover reconsidered
Warnock, F.E. (2001)

Luxury Goods and the Equity Premium
Ait-Sahalia, Y., J.A. Parker & M. Yogo (2001)

International Portfolio Investment: Theory, Evidence, and Institutional Framework   Acrobat Required
Bartram, S.M. & G. Dufey (2001)

Abstract: At first sight, the idea of investing internationally seems exciting and full of promise because of the many benefits of international portfolio investment. By investing in foreign securities, inves-tors can participate in the growth of other countries, hedge their consumption basket against ex-change rate risk, realize diversification effects and take advantage of market segmentation on a global scale. Even though these advantages might appear attractive, the risks of and constraints for international portfolio investment must not be overlooked. In an international context, finan-cial investments are not only subject to currency risk and political risk, but there are many institu-tional constraints and barriers, significant among them a host of tax issues. These constraints, while being reduced by technology and policy, support the case for internationally segmented securities markets, with concomitant benefits for those who manage to overcome the barriers in an effective manner.

Optimal Portfolio Allocation in a World Without Treasury Securities
Bomfim, A.N. (2001)

The Two Monetary Approaches to the Balance of Payments: Keynesian and Johnsonian
Polak, J.J. (2001)

Consumption-Based Interest Rate and the Present-Value Model of the Current Account--Evidence from Nigeria
Adedeji, O.S. (2001)

Inflation targeting in a small open economy
Jarle Bergo (BIS Review) Sep 5, 2001

The Asset Allocation of Emerging Market Mutual Funds
Disyatat, P. & R.G. Gelos (2001)

Financial Super-Markets: Size Matters for Asset Trade
Martin, P. & H. Rey (2001)

The Impossible Duo? Globalization and Monetary Independence in Emerging Markets   Acrobat Required
Valesco, A. (2001)

The Impact of U.S. Economic Growth on the Rest of the World: How Much Does it Matter?
Arora, V.B. & A. Vamvakidis (2001)

Migration, Human Capital, and Poverty in a Dual-Economy of a Developing Country
Masson, P.M. (2001)

Net Foreign Assets and the Exchange Rate: Redux Revived   Acrobat Required
Cavallo, M. & F. Ghironi (2001)

Easy Money Through The Back Door: The Markets Vs. The ECB   Acrobat Required
Bibow, J. (2001)

Abstract: This brief assesses the experiences of Europe's policy regime in the two years since the introduction of the euro in 1999, particularly the performance of the European Central Bank (ECB), the institution in charge of conducting monetary policy for the euro area. Conventional accounts of European growth, price, and labor market performance over recent years focus on labor market institutions and wage trends. By contrast, the interpretation offered here assigns a key role to demand-side factors as the driving force behind the recovery in output and employment growth. It is argued that the euro's plunge essentially resumed the trend of deutsche mark weakness that had started in 1996 and that currency depreciation amounted to a significant easing of monetary conditions.

Endogenous Currency of Price Setting in a Dynamic Open Economy Model
Devereux, M.B. & C. Engel (2001)

Abstract: Many papers in the recent literature in open economy macroeconomics make different assumptions about the currency in which firms set their export prices when nominal prices must be pre-set. But to date, all of these studies take the currency of price setting as exogenous. This paper sets up a simple two-country general equilibrium model in which exporting firms can choose the currency in which they set prices for sales to foreign markets. We make two alternative assumptions about the structure of international financial markets: one where there are complete markets for hedging consumption risk internationally, and the other without risk-sharing possibilities. Our results are quite sharp: exporters will generally wish to set prices in the currency of the country that has the most stable monetary policy. When monetary stability is similar among countries, there is an equilibrium where firms from all countries set their price in the currency of the buyer (local currency pricing). But except for a special case where money variances are exactly identical across countries, there is no equilibrium where all firms set export prices in their own currencies (producer currency pricing).

International Cartel Enforcement: Lessons from the 1990s
Evenett, S.J., M.C. Levenstein & V.Y. Suslow (2001)

Risk Aversion and Optimal Portfolio Policies in Partial and General Equilibrium Economies
Kogan, L. & R. Uppal (2001)

Optimal Monetary Policy in Closed versus Open Economies: An Integrated Approach
Clarida, R., J. Gali & M. Gertler (2001)

The Empirics of Monetary Policy Rules in Open Economies
Clarida, R. (2001)

Central Bank Learning, Terms of Trade Shocks & Currency Risk: Should Exchange Rate Volatility Matter for Monetary Policy? | Published   ScienceDirect Required   Acrobat Required
Lim, G.C. & P.D. McNelis (2001/07)

Simple Monetary Policy Rules and Exchange Rate Uncertainty   Acrobat Required
Leitemo, K. & U. Soderstrom (2001)

New International Monetary Arrangements and the Exchange Rate | Alternative   Acrobat Required
Monacelli, T. (2001)

Evidence Uncovered: Long-Term Interest Rates, Monetary Policy, and the Expectations Theory
Roush, J.E. (2001)

International Finance in General Equilibrium | Published   Recommended!   Adobe Acrobat Required!   ScienceDirect Required
Geanakoplos, J. & D.P. Tsomocos (2001)

Abstract: Our purpose in this paper is to unify international trade and finance in a single general equilibrium model. Our model is rich enough to include multiple commodities (including traded and nontraded goods), heterogeneous consumers in each country, multiple time periods, multiple credit markets, and multiple currencies. Yet our model is simple enough to be effectively computable. We explicitly calculate the financial and real effects of changes in tariffs, productivity, and preferences, as well as the effects of monetary and fiscal policy. We maintain agent optimization, rational expectations, and market clearing (i.e., perfect competition with flexible prices) throughout. But because of the important role money plays, and because of the heterogeneity of markets and agents, we find that fiscal and monetary policy both have real effects. The effects of policy on real income, long-term interest rates, and exchange rates are qualitatively identical to those suggested in Mundell-Fleming (without the small country hypothesis), although our equilibrating mechanisms are different. However, because the Mundell-Fleming model ignores expectations and relative price changes, our model predicts different effects on the flow of capital, the balance of trade, and real exchange rates in some circumstances.

Mind the Gap: What is the Best Measure of Slack in the Euro Area?
Ross, K. & A. Ubide (2001)

A Dual Liquidity Model for Emerging Markets   Recommended!
Caballero, R.J. & A. Krishnamurthy (2002)

Abstract: The last few years have seen a significant re-evaluation of the models used to analyze crises in emerging markets. Recent models typically stress financial constraints or distorted financial incentives. While this certainly represents progress, these models share a weakness with the earlier work: neither is uniquely about emerging markets. Adaptations of the Mundell-Fleming model represent Argentina as a Belgium with larger external shocks. Likewise, emerging market models of financial constraints are adaptations of developed economy ones with tighter financial constraints. In our work, we have advocated a model which distinguishes between the financial constraints affecting borrowing and lending among agents within an emerging economy, and those affecting borrowing from foreign lenders. This 'dual liquidity' model offers a parsimonious description of the behavior of firms, governments, and asset prices during financial crises. It also provides prescriptions for optimal policy responses to these crises.

International Labor Economics
Hamermesh, D.S. (2002)

Why Are Rates of Inflation So Low After Large Devaluations?
Burstein, A., M. Eichenbaum & S. Rebelo (2002)

Monetary Policy Rules and Oil Price Shocks   Adobe Acrobat Required!
Kamps, C. & C. Pierdzioch (2002)

Explaining the Migration of Stock from Exchanges in Emerging Economies to International Centers   Recommended!
Claessens, S., D. Klingebiel & S. Schmuckler (2002)

Abstract: We study the determinants of stock market development and the growing migration of capital raising, listing, and trading activity to international exchanges. Economies with higher income per capita, sounder macro policies, more efficient legal systems with better shareholder protection, and more open financial markets have larger and more liquid markets. As such fundamentals improve, however, the degree of migration to international exchanges also increases. This leads to gains for corporations in the form of lower costs, better terms, and more liquidly-traded shares. Fully-fledged local stock exchanges are thus becoming less necessary for many economies. Furthermore, migration can leave too little domestic activity to sustain a local exchange. Therefore, the functions and forms of stock exchanges in many economies need to be rethought.

Primer on Reforms in a Second-Best Ambiguous Environment: A Case for Gradualism
Erbas, S.N. (2002)

Determinants of Current Account Deficits in Developing Countries
Calderon, C.A., A. Chong & N.V. Loayza (2002)

International Taxation   SURVEY PAPER
Gordon, R.H. & J.R. Hines Jr. (2002)

Gold as an Inflation Hedge?   Acrobat Required
Ghosh, D., E.J. Levin, P. Macmillan & R.E. Wright (2002)

Policy Rules and External Shocks   Acrobat Required
Ball, L. (2002)

Heckscher-Ohlin Business Cycles
Cuñat, A. & M. Maffezzoli (2002)

Abstract: This paper introduces Heckscher-Ohlin trade features into a two-country DSGE model, and studies how productivity shocks propagate through trade in goods. In comparison with standard models, (i) transitory shocks to productivity have permanent effects on country- level aggregate variables; (ii) aggregate productivity shocks have relevant effects on the sectoral allocation of production factors; (iii) the business cycle properties of our model are broadly compatible with the empirical evidence; (iv) under complete asset markets, the international correlation of consumption is lower than that of output.

On the Origins of the Fleming-Mundell Model
Boughton, J.M. (2002)

A Theory of the Currency Denomination of International Trade | Published   ScienceDirect Required
Bacchetta, P. & E. van Wincoop (2002/2005)

Small Open Economy Model with Domestic Resource Shocks: Monetary Union versus Floating Exchange Rate
Einarsson, T. (2002)

Are Financial Assets Priced Locally or Globally?
Karolyi, G.A. & R.M. Stulz (2002)

Decomposing the Persistence of International Equity Flows
Froot, K.A. & J.D. Tjornhom (2002)

Some International Issues in Commodity Taxation
Keen, M.J. (2002)

Equilibrium Exchange Rates and Supply Side Performance   Adobe Acrobat Required!
Benigno, G. & C. Thoenissen (2002)

Exchange Rates and Adjustment: Perspectives from the New Open Economy Macroeconomics
Obstfeld, M. (2002)

Abstract: The New Open Economy Macroeconomics has allowed economists to tackle classical problems with new tools, while also generating new ideas and questions. In their attempts to make the new models capture empirical regularities, researchers have entertained a variety of assumptions about the international pricing of goods, notably, models of pricing to market and destination-currency pricing of exports. Some of the resulting models imply that exchange-rate changes lack international expenditure-switching effects, and they thus appear to call for a radical rethinking of the role of exchange rates in international adjustment. This paper argues that the recent resurgence of exchange-rate pessimism stems from oversimplified modeling strategies rather than from evidence. Like earlier episodes starting with the extreme 'elasticity pessimism' of the early postwar era, it is based on a misinterpretation of the empirical record.

Liability Dollarization and the Bank Balance Sheet Channel
Choi, W.G. & D.H. Cook (2002)

Closing Small Open Economy Models | Published   ScienceDirect Required
Schmitt-Grohe, S. & M. Uribe (2002/2003)

Dynamic General Equilibrium Analysis: The Open Economy Dimension   Adobe Acrobat Required
Lane, P.R. & G. Ganelli (2002)

An Estimated Stochastic Dynamic General Equilibrium Model of the Euro Area   Adobe Acrobat Required
Smets, F. & R. Wouters (2002)

Why Do Consumer Prices React less than Import Prices to Exchange Rates?
Bacchetta, P. & E. van Wincoop (2002)

The Credit Channel in Middle Income Countries
Tornell, A. & F. Westermann (2002)

Exchange Rate Dynamics, Learning and Misperception
Gourinchas, P.O. & A. Tornell (2002)

Towards a Theory of Current Accounts   Recommended!   Acrobat Required
Ventura, J. (2002)

Abstract: The current accounts data of industrial countries exhibits some strong patterns that are inconsistent with the intertemporal approach to the current account. This is the basic model that international economists have been using for more than two decades to think about current account issues. This paper shows that it is possible to go a long way towards reconciling the theory and the data by introducing two additional features to the basic model: investment risk and adjustment costs to investment. Moreover, these extensions generate new and unexpected theoretical predictions that receive substantial support in the data. The overall message is therefore positive: with a couple of reasonable modifications, the intertemporal approach to the current account provides a fairly good description of the industrial country data.

The New Open Economy Macroeconomics of Government Debt | Published   Recommended!   Adobe Acrobat Required   ScienceDirect Required
Ganelli, G. (2002)

A theory of the currency denomination of international trade   Adobe Acrobat Required
Bacchetta, P. & E. van Wincoop (2003)

Optimal Monetary Policy in a Small Open Economy with Habit Formation and Nominal Rigidities
Choi, W.G. & Y. Jung (2003)

Monetary Policy and Exchange Rate Volatility in a Small Open Economy | Published   Wiley Interscience Required
Monacelli, T. & J. Gali (2002/05)

The Equity Premium: Why is it a Puzzle?
Mehra, R. (2003)

Some Implications for Monetary Policy of Uncertain Exchange Rate Pass-Through
Hunt, B. & P. Isard (2003)

Endogenous Exchange Rate Pass-through when Nominal Prices are Set in Advance | Published   ScienceDirect Required
Devereux, M.B., C. Engel & P.E. Storgaard (2003)

Inflation Inertia and Credible Disinflation - The Open Economy Case | Published   ScienceDirect Required
Calvo, G., O. Celasun & M. Kumhof (2003/07)

Monetary Rules for Small, Open, Emerging Economies
Laxton, D. & P. Pesenti (2003)

Macroeconomics of international price discrimination | Published   Adobe Acrobat Required   ScienceDirect Required
Corsetti, G. & L. Dedola (2003/05)

Real exchange rate in an inter-temporal N-country-model with incomplete markets   Adobe Acrobat Required
Mercereau, B. (2003)

A Simple Framework for International Monetary Policy Analysis   Acrobat Required
Clarida, R., J. Galí & M. Gertler, (2003)

The Open Economy Phillips Curve: 'New Keynesian' Theory and Evidence   Acrobat Required
Loungani, P., A. Razin & C.W. Yuen (2003)

Commitment, Discretion and Fixed Exchange Rates in an Open Economy   Acrobat Required
Monacelli, T. (2003)

Endogenous Nontradability and Macroeconomic Implications | Published   Wiley Interscience Required
Bergin, P.R. & R. Glick (2003/07)

Do Capital Flows Respond to Risk and Return?
Calderón, C., L. Servén & N. Loayza (2003)

Productivity Shocks and Consumption Smoothing in the International Economy   Acrobat Required
Ghironi, F., T.B. Iscan & A. Rebucci (2003)

Globally-Stabilizing Fiscal Policy Rules
Guo, J.T. & K.J. Lansing (2003)

Asset Prices and Exchange Rates
Pavlova, A. & R. Rigobon (2003)

The Response of the Current Account to Terms of Trade Shocks: Persistence Matters
Kent, C. & P.A. Cashin (2003)

John Maynard Keynes 1937-1946: The Creation of International Macro-Economics   Wiley Interscience Required
Vines, D. (2003)

Global dynamics in macroeconomics: an overlapping generations example   ScienceDirect Required
Gomis-Porqueras, P. & A. Haro (2003)

Exchange Rate Volatility and Consumption Home-Bias   Adobe Acrobat Required
Cooke, D. (2003)

Interactions Between Monetary and Fiscal Policy Under Flexible Exchange Rates | Published   Adobe Acrobat Required   ScienceDirect Required
Leith, C. & S. Wren-Lewis (2003/08)

Monetary Policy in Open Economies: Price Inertia and Inflation Targeting   Adobe Acrobat Required
Rigon, M. (2003)

Home-Product Bias, Capital Mobility, and the Effects of Monetary Policy Shocks in Open Economies   Adobe Acrobat Required
Pierdzioch, C. (2003)

Capital Mobility and the Effectiveness of Fiscal Policy in Open Economies   Adobe Acrobat Required
Pierdzioch, C. (2003)

Keeping Up with the Joneses: Implications for the Welfare Effects of Monetary Policy in Open Economies   Adobe Acrobat Required
Pierdzioch, C. (2003)

Keeping Up with the Joneses: An International Asset Pricing Model   Acrobat Required
Gomez, J-P., R. Priestly & F. Zapatero (2003)

New Keynesian, Open-Economy Models and Their Implications for Monetary Policy   Adobe Acrobat Required
Bowman, D. & B.M. Doyle (2003)

Is there a room for national monetary policy in the era of globalization?   Adobe Acrobat Required
Dabrowski, M. (2003)

Does Exchange Rate Risk Matter for Welfare? | Published   ScienceDirect Required
Bergin, P.R. & I. Tchakarov (2003/07)

Alternative Targeting Regimes, Transmission lags and the Exchange rate Channel   Adobe Acrobat Required
Lam, J-P. (2003)

Devaluation (levels vs. rates) and balance of payments in a cash-in-advance economy   ScienceDirect Required
Petrucci, A. (2003)

Nominal Rigidities and Exchange Rate Pass-Through in a Structural Model of a Small Open Economy   Adobe Acrobat Required
Ambler, S., A. Dib & N. Rebei (2003)

Monetary Policy Rules in an Interdependent World
Kollman, R. (2003)

Distribution costs and real exchange rate dynamics during exchange-rate-based stabilizations   ScienceDirect Required
Burstein, A.T., J.C. Neves & S. Rebelo (2003)

The Structural Approach of a Natrex Model on Equilibrium Exchange Rates   Adobe Acrobat Required
Martinez, C.M. (2003)

Current Account Imbalances, Thriftiness And The Real Exchange Rate In A Growing Economy   Adobe Acrobat Required
Martinez, C.M. (2003)

International risk-sharing and the transmission of productivity shocks
Corsetti, G., L. Dedola & S. Leduc (2003)

Effects of the Exchange-Rate Regime on Trade under Monetary Uncertainty: The Role of Price Setting   Acrobat Required
Mihailov, A. (2003)

The U.S. Dollar and the Trade Deficit: What Accounts for the Late 1990s?
Hunt, B.L. & A. Rebucci (2003)

International monetary trade and the law of one price   ScienceDirect Required
Camera, G. & J. Winkler (2003)

Coping with Terms-of-Trade Shocks in Developing Countries
Broda, C. & C. Tille (2003)

Fiscal Policy in the New Open Economy. Macroeconomics and Prospects for Fiscal Policy Coordination   Adobe Acrobat Required
Coutinho, L. (2003)

The Macroeconomics of International Financial Trade   Adobe Acrobat Required
Lane, P.R. (2003)

When and How Much Does a Peg Increase Trade? The Role of Trade Costs and Import Demand Elasticity under Monetary Uncertainty">When and How Much Does a Peg Increase Trade? The Role of Trade Costs and Import Demand Elasticity under Monetary Uncertainty   Recommended!   Adobe Acrobat Required
Mihailov, A. (2003)

Abstract: This paper extends stochastic research in new open-economy macroeconomics (NOEM) to study the effects of the exchange-rate regime on international trade in a more realistic, yet rigorous, analytical set-up. We essentially incorporate "iceberg" costs, inducing home bias, into a unified framework which nests trade between countries that produce similar vs. different composite goods. Our main result is that given (some degree of) producer's currency pricing with symmetry in structure and money shock distributions as the only source of uncertainty, a fixed exchange rate slightly reduces expected trade, measured as a share in GDP, relative to a float under elastic import demand, i.e. when countries' output mixes are similar; inelastic import demand, possible under the same taste for diversity but far less substitutable national outputs arising in our model from differences in endowments although not in technological labor input requirements, reverses this conclusion. What a peg can achieve in any of these cases is trade stabilization (across states of nature). It would be greater for (symmetric) nations which (i) have a larger proportion of producer's currency pricing in their trade, (ii) are exposed to higher monetary uncertainty, (iii) produce less substitutable output mixes and (iv) are located closer to one another or apply weaker bilateral trade restrictions.

External Constraints on Monetary Policy and the Financial Accelerator
Gertler, M., S. Gilchrist & F. Natalucci (2003)

Commitment Vs. Flexibility
Amador, A., I. Werning, & G-M. Angeletos (2003)

Monetary Policy, Real Exchange Rate, and the Current Account in a Small Open Economy   Adobe Acrobat Required
Soto, C. (2003)

Are Different-Currency Assets Imperfect Substitutes?   Acrobat Required
Evans, M.D.D. & R.K. Lyons (2003)

Optimal discretionary monetary policy in the open economy: Choosing between CPI and domestic inflation as target variables | Published   Acrobat Required   Wiley Interscience Required
Guender, A.V. (2003/06)

Exchange Rate Policy and Endogenous Price Flexibility
Devereux, M.B. (2003)

Optimal Inflation in an Open Economy   Adobe Acrobat Required
Arseneau, D.M. (2003)

Into the Mussa puzzle: monetary policy regimes and the real exchange rate in a small open economy   ScienceDirect Required
Monacelli, T. (2004)

The US Current Account, New Economy Services, and Implications for Sustainability   Adobe Acrobat Required
Mann, C.L. (2004)

International Home Bias: Some Explanations   Ingenta Select Required
Hillberry R. & D. Hummels (2004)

Inflation Targeting and Exchange Rate Rules in an Open Economy
Parrado, E. (2004)

How Well Can the New Open Economy Macroeconomics Explain the Exchange Rate and Current Account? | Published   ScienceDirect Required
Bergin, P.R. (2004/06)

Imperfect Capital Mobility in an Open Economy Model of Capital Accumulation
Klyuev, V. (2004)

Real exchange rate persistence and monetary policy rules   ScienceDirect Required
Benigno, G. (2004)

The impact of monetary policy on the exchange rate: evidence from three small open economies   ScienceDirect Required
Zettelmeyer, J. (2004)

U.S. real exchange rate fluctuations and relative price fluctuations | Published   ScienceDirect Required
Betts, C.M. & T.J. Kehoe (2004/06)

Excessive Liability Dollarization in a Simple Signaling Model   Adobe Acrobat Required
Besancenot, D. & R. Vranceanu (2004)

The Choice of Invoice Currency under Uncertainty: Theory and Evidence from Korea   Acrobat Required
Fukuda, S. & M. Ono (2004)

Monetary policy rules and exchange rate flexibility in a simple dynamic general equilibrium model   ScienceDirect Required
Devereux, M.B. (2004)

Monetary and fiscal interactions in open economies   ScienceDirect Required
Lombardo, G. & A. Sutherland (2004)

Sectoral adjustment costs and real exchange rate dynamics in a two-sector dependent economy   ScienceDirect Required
Mahbub Morshed, A.K.M. & S.J. Turnovsky (2004)

Can Portfolio Rebalancing Explain the Dynamics of Equity Returns, Equity Flows, and Exchange Rates? | Published   Ingenta Select Required
Hau, H. & H. Rey (2004)

A Small Corner of Intertemporal Public Finance - New Developments in Monetary Economics: 2 Ghosts, 2 Eccentricities, A Fallacy, A Mirage and A Mythos
Buiter, W. (2004)

Productivity Shocks, Learning, and Open Economy Dynamics
Daumont, R.E. (2004)

On the Hump-Shaped Output Effect of Monetary Policy in an Open Economy   Acrobat Required
Pierdzioch, C. & S. Yener (2004)

Economic Performance over the Conflict Cycle
Staines, N. (2004)

Challenging the Empirical Evidence from Present Value Models of the Current Account
Mercereau, B. & J. Miniane (2004)

Optimal monetary policy in a currency area   ScienceDirect Required
Benigno, P. (2004)

Monetary Policy in an Estimated Open-Economy Model with Imperfect Pass-Through | Alternative   Acrobat Required
Linde, J., M. Nessen & U. Soderstrom (2004)

Inflation Targeting and Exchange Rate Pass-Through | Published   Acrobat Required   ScienceDirect Required
Flamini, A. (2004/07)

Asset Prices and Exchange Rates
Pavlova, A. & R. Rigobon, R. (2004)

Regime Shifts and the Stability of Backward Looking Phillips Curves in Open Economies | Published   ScienceDirect Required   Acrobat Required
Castelnuovo, E. (2004/08)

Theory of tax smoothing in the small open economy   ScienceDirect Required
Fisher, L.A. & G.H. Kingston (2004)

Exchange Rate Dynamics, Nominal Rigidities And Equilibrium Unemployment   Acrobat Required
Holt, R. (2004)

Monetary policy and the credit channel in an open economy   ScienceDirect Required
Ramírez, C.D. (2004)

Emerging Market Business Cycles: The Cycle is the Trend | Published
Aguiar, M. & G. Gopinath (2004/07)

International Trade and Macroeconomic Dynamics with Heteroegenous Firms   Recommended!
Ghironi, F. & M.J. Melitz (2004)

Abstract: We develop a stochastic, general equilibrium, two-country model of trade and macroeconomic dynamics. Productivity differs across individual, monopolistically competitive firms in each country. Firms face a sunk entry cost in the domestic market and both fixed and per-unit export costs. Only relatively more productive firms export. Exogenous shocks to aggregate productivity and entry or trade costs induce firms to enter and exit both their domestic and export markets, thus altering the composition of consumption baskets across countries over time. In a world of flexible prices, our model generates endogenously persistent deviations from PPP that would not exist absent our microeconomic structure with heterogeneous firms. It provides an endogenous, microfounded explanation for a Harrod-Balassa-Samuelson effect in response to aggregate productivity differentials and deregulation. Finally, the model successfully matches several moments of US and international business cycles.

Uncertainty and the open economy: a view through two different lenses   Adobe Acrobat Required
Lees, K. (2004)

Exchange rate changes and endogenous terms of trade effects in a small open economy   ScienceDirect Required
Swift, R. (2004)

Fiscal adjustment and labor market dynamics in an open economy   ScienceDirect Required
Agénor, P-R. (2004)

Asset Accumulation, Fertility Choice and Nondegenerate Dynamics in a Small Open Economy
Petrucci, A. (2004)

The welfare effect of international asset market integration under nominal rigidities   ScienceDirect Required
Tille, C. (2004)

Inflation in open economies with complete markets   Acrobat Required
Celentani, M., J.I. Conde-Ruiz & K. Desmet (2004)

Which currency to set price? A model of multiple countries and risk averse firm   Acrobat Required
Wang, J. (2004)

Domestic and International Finance: How Do They Affect Consumption Smoothing?
Huizinga, H. & D. Zhu (2004)

Characterization of the Dynamic Effects of Fiscal Shocks in a Small Open Economy   Acrobat Required
Rebei, N. (2004)

Caution or Activism? Monetary Policy Strategies in an Open Economy
Ellison, M., L. Sarno & J. Vilmunen (2004)

A Gravity View of Exchange Rate Disconnect   Acrobat Required
Fitzgerald, D. (2004)

Trade, Interdependence and Exchange Rates   Acrobat Required
Fitzgerald, D. (2004)

Remoteness and Real Exchange Rate Volatility
Bravo-Ortega, C. & J. di Giovanni (2005)

Financial Globalization and Exchange Rates
Lane, P.R. & G.M. Milesi-Ferretti (2005)

Incomplete pass-through and the welfare effects of exchange rate variability   ScienceDirect Required
Sutherland, A. (2005)

Dynamic stability in a two-country model of optimal growth and international trade   ScienceDirect Required
Brecher, R.A., Z. Chen & E.U. Choudhri (2005)

Intertemporal budget policies and macroeconomic adjustment in a small open economy   ScienceDirect Required
Bianconi, M. & W.H. Fisher (2005)

Real exchange rate and employment performance in an open economy   ScienceDirect Required
Faria, J.R. & M.A. León-Ledesma (2005)

Productivity Spillovers, Terms of Trade, and the 'Home Market Effect' | Alternative | Published   ScienceDirect Required
Corsetti, G., P. Martin & P. Pesenti (2005/07)

Bayesian Estimation of an Open Economy DSGE Model with Incomplete Pass-Through | Published   ScienceDirect Required   Acrobat Required
Adolfson, M., S. Laséen, J. Lindé & M. Villani (2005/07)

What Drives Business Cycles in a Small Open Economy with a Fixed Exchange Rate?   Acrobat Required
Dam, N.A. & J.G. Linaa (2005)

Equivalence Results for Optimal Pass-Through, Optimal Indexing to Exchange Rates, and Optimal Choice of Currency for Export Pricing
Engel, C. (2005)

Can exchange rate variations or trade policy alter the equilibrium current account?   ScienceDirect Required
Miller, N.C. (2005)

Feasible Limits for External Deficits and Debt
Makin, A.J. (2005)

Inflation, openness, and exchange-rate regimes: The quest for short-term commitment   ScienceDirect Required
Alfaro, L. (2005)

Current Account Dynamics in a Small Open-Economy Model of Status Seeking   Ingenta Select Required
Fisher, W.H. (2005)

Net Foreign Asset Positions and Consumption Dynamics in the International Economy | Published   ScienceDirect Required
Ghironi, F., T.B. Iscan & A. Rebucci (2005/08)

The Simple Geometry of Transmission and Stabilization in Closed and Open Economies | Alternative   Recommended!   SURVEY PAPER
Corsetti, G. & P. Pesenti (2005)

Abstract: This paper provides an introduction to the recent literature on macroeconomic stabilization in closed and open economies. The authors present a stylized theoretical framework, illustrating its main properties with the help of an intuitive graphical apparatus. Among the issues they discuss are optimal monetary policy and the welfare gains from macroeconomic stabilization, the international transmission of real and monetary shocks and the role of exchange rate pass-through, and the design of optimal exchange rate regimes and monetary coordination among interdependent economies.

Does asymmetric information cause the home equity bias?
Bravo-Ortega, C. (2005)

Status seeking in the small open economy   ScienceDirect Required
Fisher, W.H. & F.X. Hof (2005)

Globalization and Disinflation: The Efficiency Channel
Loungani, P. & A. Razin (2005)

Does trade openness matter for aggregate instability?   ScienceDirect Required
De Fiore, F. & Z. Liu (2005)

Anticipated policy and endogenous growth in a small open monetary economy   ScienceDirect Required
Shaw, M-F, C-C. Lai & W-Y. Chang (2005)

Efficient Fiscal Policy and Amplification
Aguiar, M., M. Amador & G. Gopinath (2005)

Is the U.S. Current Account Deficit Sustainable? And If Not, How Costly is Adjustment Likely To Be?
Edwards, S. (2005)

From World Banker to World Venture Capitalist: US External Adjustment and the Exorbitant Privilege | Comment   Acrobat Required
Gourinchas, P-O. & H. Rey (2005)

Smooth Landing or Crash? Model-Based Scenarios of Global Current Account Rebalancing
Faruqee, H., D. Laxton, D. Muir & P. Pesenti (2005)

Financial Liberalization and Consumption Volatility in Developing Countries
Levchenko, A.A. (2005)

Optimal Dutch disease   ScienceDirect Required
Matsen, E. & R. Torvik (2005)

Trade Invoicing in the Accession Countries: Are They Suited to the Euro?
Goldberg, L. (2005)

Non-fundamental exchange rate volatility and welfare   Adobe Acrobat Required
Straub, R. & I. Tchakarov (2005)

Financial Liberalization and Inflationary Dynamics in the Context of a Small Open Economy   Adobe Acrobat Required
Gupta, R. (2005)

An open-economy new Keynesian Phillips curve for the U.K.   ScienceDirect Required
Batini, N., B. Jackson & S. Nickell (2005)

New Evidence on the Puzzles: Results from Agnostic Identification on Monetary Policy and Exchange Rates | Published   Acrobat Required   ScienceDirect Required
Scholl, A. & H. Uhlig (2005/08)

General Equilibrium Analysis of the Eaton-Kortum Model of International Trade | Published   ScienceDirect Required
Alvarez, F. & R.E. Lucas (2005/07)

Abstract: We study a variation of the Eaton-Kortum model, a competitive, constant-returns-to-scale multicountry Ricardian model of trade. We establish existence and uniqueness of an equilibrium with balanced trade where each country imposes an import tariff. We analyze the determinants of the cross-country distribution of trade volumes, such as size, tariffs and distance, and compare a calibrated version of the model with data for the largest 60 economies. We use the calibrated model to estimate the gains of a world-wide trade elimination of tariffs, using the theory to explain the magnitude of the gains as well as the differential effect arising from cross-country differences in pre-liberalization of tariffs levels and country size.

Current Account Balances, Financial Development and Institutions: Assaying the World "Savings Glut"
Chinn, M.D. & H. Ito (2005)

Credibility and commitment of monetary policy in open economies   ScienceDirect Required
D'Amato, M. & R. Martina (2005)

Monetary Policy under Sudden Stops   Acrobat Required
Cúrdia, V. (2005)

Fiscal Policy in the New Open Economy Macroeconomics and Prospects for Fiscal Policy Coordination   Wiley Interscience Required
Coutinho, L. (2005)

Exchange Rates and Fiscal Adjustments: Evidence from the OECD and Implications for the EMU
Lambertini, L. & J.A. Tavares (2005)

Current Account Deficits in Industrial Countries: The Bigger They are, the Harder They Fall?
Freund, C. & F. Warnock (2005)

Real Effects of Nominal Exchange Rate Shocks   Acrobat Required
Konya, I. & P. Benczur (2005)

The Mundell-Fleming-Dornbusch Model in a New Bottle   Acrobat Required
Landry, A. (2005)

A Fair Exchange? Theory and Practice of Calculating Equilibrium Exchange Rates
Bayoumi, T.A., H. Faruqee & J. Lee (2005)

Real Exchange Rates in Growing Economies: How Strong Is the Role of the Nontradables Sector?
Miyajima, K. (2005)

The Link Between Interest Rates and Exchange Rates: Do Contractionary Depreciations Make a Difference?   Acrobat Required

Transfers, Non-Traded Goods, and Unemployment: An Analysis of the Keynes-Ohlin Debate   Acrobat Required
Brakman, S. & C. van Marrewijk (2005)

Capital Account Openness and Bankruptcies   Adobe Acrobat Required
Angeles, L. (2005)

Monetary policy and exchange rate interactions in a small open economy   Adobe Acrobat Required
Bjørnland, H.C. (2005)

Stochastic temporary stabilization: Undiversifiable devaluation and income risks   ScienceDirect Required
Venegas-Martínez, F. (2006)

Level Playing Fields in International Financial Regulation
Morrison, A.D. & L. White (2005)

The U.S. Current Account Deficit and the Expected Share of World Output | Published
Engel, C. & J.H. Rogers (2006)

Savers, Spenders and Fiscal Policy in a Small Open Economy | Published   Adobe Acrobat Required
Matsen, E., T. Sveen & R. Torvik (2006/07)

DSGE models of high exchange-rate volatility and low pass-through | Published   ScienceDirect Required
Corsetti, G., L. Dedola & S. Leduc (2005/08)

The Dynamic Behavior of the Real Exchange Rate in Sticky Price Models | Published   Acrobat Required   Ingenta Select Required
Steinsson, J. (2005/08)

Monetary policy and exchange rate interactions in a small open economy   Acrobat Required
Bjørnland, H.C. (2005)

The Social Cost of Foreign Exchange Reserves
Rodrik, D. (2006)

Real and Nominal Wage Adjustment in Open Economies   Acrobat Required
Forslund, A., N. Gottfries & A. Westermark (2006)

Sticky Borders
Gopinath, G. & R. Rigobon (2006)

Distribution Margins, Imported Inputs, and the Sensitivity of the CPI to Exchange Rates
Goldberg, L.S. & J.M. Campa (2006)

Closed and Open Economy Models of Business Cycles with Marked Up and Sticky Prices   Wiley Interscience Required
Barro, R.J. & S. Tenreyro (2006)

Exchange Rates and Monetary Policy in Emerging Market Economies   Wiley Interscience Required
Devereux, M.B., P.R. Lane & J. Xu (2006)

Perspectives on Low Global Interest Rates   Wiley Interscience Required
Catão, L. & G.A. Mackenzie (2006)

International Financial Integration, Sovereignty, and Constraints on Macroeconomic Policies
Kletzer, K. (2006)

Openness, exchange rate regimes and the Phillips curve   Acrobat Required
Bowdler, C. (2005)

Openness and inflation volatility: Cross-country evidence   Acrobat Required
Bowdler, C. & A. Malik (2006)

The U.S. Current Account Deficit: Gradual Correction or Abrupt Adjustment? | Published   ScienceDirect Required
Edwards, S. (2006)

The Relationship Between Exchange Rates and Inflation Targeting Revisited
Edwards, S. (2006)

Macroeconometric Modelling with a Global Perspective   Recommended!   Acrobat Required
Pesaran, M.H. & R.P. Smith (2006)

Abstract: This paper provides a synthesis and further development of a global modelling approach introduced in Pesaran, Schuermann and Weiner (2004), where country specific models in the form of VARX* structures are estimated relating a vector of domestic variables, xit, to their foreign counterparts, x*it, and then consistently combined to form a Global VAR (GVAR). It is shown that the VARX* models can be derived as the solution to a dynamic stochastic general equilibrium (DSGE) model where over-identifying long-run theoretical relations can be tested and imposed if acceptable. This gives the system a transparent long-run theoretical structure. Similarly, short-run over-identifying theoretical restrictions can be tested and imposed if accepted. Alternatively, if one has less confidence in the short-run theory the dynamics can be left unrestricted. The assumption of the weak exogeneity of the foreign variables for the long-run parameters can be tested, where x*it variables can be interpreted as proxies for global factors. Rather than using deviations from ad hoc statistical trends, the equilibrium values of the variables reflecting the long-run theory embodied in the model can be calculated. This approach has been used in a wide variety of contexts and for a wide variety of purposes. The paper also provides some new results.

Monetary Policy and Exchange Rate Dynamics: New Evidence from the Narrative Approach to Shock Identification | Published   Acrobat Required   ScienceDirect Required
Bluedorn, J.C. & C. Bowdler (2006/11)

Optimal Monetary Policy in a Small Open Economy with Home Bias
Faia, E. & T. Monacelli (2006)

Designing targeting rules for international monetary policy cooperation   ScienceDirect Required
Benigno, G. & P. Benigno (2006)

Distribution Margins, Imported Inputs, and the Sensitivity of the CPI to Exchange Rates
Campa, J.M. & L.S. Goldberg (2006)

Are There Thresholds of Current Account Adjustment in the G7?
Clarida, R.H., M. Goretti & M.P. Taylor (2006)

G7 Current Account Imbalances: Sustainability and Adjustment
Clarida, R.H. (2006)

Exchange Rate Volatility and Productivity Growth: The Role of Financial Development | Published   ScienceDirect Required
Aghion, P., P. Bacchetta, R. Ranciere & K. Rogoff (2006/09)

A Decomposition of the Sources of Incomplete Cross-Border Transmission
Hellerstein, R. (2006)

Antitrust in Open Economies
Francois, J.F. & H. Horn (2006)

Exchange-Rate Pass-Trough at the Product Level
Gaulier, G., A. Lahreche-Revil & I. Mejean (2006)

Portfolio Choice in a Monetary Open-Economy DSGE Model
Engel, C. & A. Matsumoto (2006)

Are Valuation Effects Desirable from a Global Perspective?
Benigno, P. (2006)

International Diversification at Home and Abroad
Cai, F. & F.E. Warnock (2006)

Exchange Rates and External Adjustment: Does Financial Globalization Matter?   Acrobat Required
Lane, P. & G.M. Milesi-Ferretti (2006)

Should Central Banks Target Consumer Prices or the Exchange Rate?   Wiley Interscience Required
Kirsanova, T., C. Leith & S. Wren-Lewis (2006)

International Portfolio Equilibrium and the Current Account
Kollmann, R. (2006)

The expenditure switching effect, welfare and monetary policy in a small open economy   ScienceDirect Required
Sutherland, A. (2006)

International interdependencies in fiscal stabilization policies   ScienceDirect Required
Andersen, T.M. & M. Spange (2006)

Currency Mismatches, Default Risk, and Exchange Rate Depreciation: Evidence from the End of Bimetallism
Bordo, M.D., C.M. Meissner & M.D. Weidenmier (2006)

Monetary policy in open economies   ScienceDirect Required
Dellas, H. (2006)

On US politics and IMF lending   ScienceDirect Required
Andersen, T.B., T. Harr & F. Tarp (2006)

Financing government expenditures in an open economy   ScienceDirect Required
Holman. J.A. & K.C. Neanidis (2006)

International Policy Coordination and Simple Monetary Policy Rules
Berger, W. & H. Wagner (2006)

Monetary policy, determinacy, and learnability in a two-block world economy   Acrobat Required
Bullard, J. & E. Schaling (2006)

Those Current Account Imbalances: A Sceptical View   Acrobat Required
Corden, W.M. (2006)

An Estimated Small Open Economy Model of the Financial Accelerator
Elekdag, S., A. Justiniano & I. Tchakarov (2006)

How Might a Disorderly Resolution of Global Imbalances Affect Global Wealth?
Warnock, F.E. (2006)

Exchange Rate Stabilization in Developed and Underdeveloped Capital Markets   Acrobat Required
Schnabl, G. & V. Chmelarova (2006)

Debt, Deficits and Destabilizing Monetary Policy in Open Economies
Schabert, A. & S. van Wijnbergen (2006)

A Policymakers' Guide to Dutch Disease
Barder, O. (2006)

On the Determinants of Exporters' Currency Pricing: History vs. Expectations   Acrobat Required
Fukuda, S-I. & M. Ono (2006)

Finance and trade: A cross-country empirical analysis on the impact of financial development and asset tangibility on international trade   ScienceDirect Required
Hur, J.,M. Raj & Y.E. Riyanto (2006)

Policy instrument choice and non-coordinated monetary policy in interdependent economies   ScienceDirect Required
Lombardo, G. and Alan Sutherland (2006)

Multinationals and Exchange Rate Pass-Through   Acrobat Required
Lai, A. & O. Secrieru (2006)

Financial Liberalization in a Small Open Economy   Acrobat Required
von Hagen, J. & H. Zhang (2006)

The Transitional Dynamics of Fiscal Policy in Small Open Economies   Acrobat Required
Heijdra, B.J. & J.E. Ligthart (2006)

Fiscal Policy and Macroeconomic Uncertainty in Developing Countries: The Tale of the Tormented Insurer
Mendoza, E.G. & P.M. Oviedo (2006)

Differences in long run exchange rate pass-through into import prices in developing countries: An empirical investigation   ScienceDirect Required
Barhoumi, K. (2006)

Exchange rate pass-through to domestic prices: Does the inflationary environment matter?   ScienceDirect Required
Choudhri, E.U. & D.S. Hakura (2006)

Exchange Rate Changes and Inflation in Post-Crisis Asian Economies: VAR Analysis of the Exchange Rate Pass-Through
Ito, T. & K. Sato (2006)

The Optimal Monetary Policy Response to Exchange Rate Misalignments   Acrobat Required
Leith, C. & S. Wren-Lewis (2006)

General Equilibrium Model of Arbitrage Trade and Real Exchange Rate Persistence   Acrobat Required
Berka, M. (2006)

Has Globalization Changed Inflation?
Ball, L.M. (2006)

Pricing-to-Market, the Interest-Rate Rule, and the Exchange Rate
Obstfeld, M. (2006)

Deflationary Shocks and Monetary Rules: an Open-Economy Scenario Analysis
Laxton, D., P. N'Diaye & P. Pesenti (2006)

Macroeconomic interdependence under incomplete markets   ScienceDirect Required
Ghironi, F. (2006)

Chartist Trading in Exchange Rate Theory   Acrobat Required
Selander, C. (2006)

Credit Market Imperfections and the Monetary Transmission Mechanism Part I: Fixed Exchange Rates   Acrobat Required
Agénor, P.R. & P.J. Montiel (2006)

Fear and Market Failure: Global Imbalances and 'Self-Insurance'   Acrobat Required
Miller, M.H. & L. Zhang (2006)

Trade Liberalization, Macroeconomic Adjustment, and Welfare: Unifying Trade and Macro Models
Choudhri, E.U., H. Faruqee & S. Tokarick (2006)

Borrowing without Debt? Understanding the U.S. International Investment Position
Higgins, M., T. Klitgaard & C. Tille (2007)

Fiscal Policy and the Exchange Rate-Current Account Nexus
Kim, J.I. (2007)

Does Inflation Targeting Make a Difference?
Mishkin, F.S. & K. Schmidt-Hebbel (2007)

The Demand for Treasury Debt
Krishnamurthy, A. & A. Vissing-Jorgensen (2007)

Current Account Deficits in Rich Countries
Blanchard, O. (2007)

Public Infrastructures, Public Consumption, and Welfare in a New-Open-Economy-Macro Model | Published   ScienceDirect Required
Ganelli, G. & J. Tervala (2007/10)

Incomplete exchange rate pass-through and simple monetary policy rules   ScienceDirect Required
Adolfson, M. (2007)

If exchange rates are random walks then almost everything we say about monetary policy is wrong   Recommended!   Acrobat Required
Alvarez, F., A. Atkeson & P.J. Kehoe (2007)

Abstract: The key question asked by standard monetary models used for policy analysis is how do changes in short term interest rates affect the economy. All of the standard models imply that such changes in interest rates affect the economy by altering the conditional means of the macroeconomic aggregates and have no effect on the conditional variances of these aggregates. We argue that the data on exchange rates imply nearly the opposite: fluctuations in interest rates are associated with nearly one-for-one changes in conditional variances and nearly no changes in conditional means. In this sense standard monetary models capture essentially none of what is going on in the data. We thus argue that almost everything we say about monetary policy using these models is wrong.

A No-Arbitrage Analysis of Macroeconomic Determinants of Term Structures and the Exchange Rate   Acrobat Required
Chabi-Yo, F. & J. Yang (2007)

Is Bad News About Inflation Good News for the Exchange Rate?
Clarida, R. & D. Waldman (2007)

United States current account deficits: A stochastic optimal control analysis   ScienceDirect Required
Stein, J.L. (2007)

Exchange Rates, Expectations, and Monetary Policy: a NOEM Perspective   Wiley Interscience Required
Pierdzioch, C. & G. Stadtmann (2007)

Convergence, capital accumulation and the nominal exchange rate   Acrobat Required
Benczúr, P. & I. Kónya (2007)

Output Volatility and Large Output Drops in Emerging Market and Developing Countries
Hakura, D. (2007)

A structuralist model of the small open economy in the short, medium and long run   ScienceDirect Required
Hoon, H.T & E.S. Phelps (2007)

Currency appreciation and current account adjustment   ScienceDirect Required
Devereux, M.B. & H. Genberg (2007)

Are Shocks to the Terms of Trade Shocks to Productivity?
Kehoe, T.J. & K.J. Ruhl (2007)

Exchange Rate Pass-Through in Emerging Markets   Acrobat Required
Ca'zorzi, M., E. Hahn & M. Sanchez (2007)

Why is the Dollar So High?
Feldstein, M. (2007)

An Evaluation of the Exchange Rate Forecasting Performance of the New Keynesian Model   Acrobat Required
Vitek, F. (2007)

The Timing and Magnitude of Exchange Rate Overshooting   Acrobat Required
Westelius, N.J., M. Hoffmann & J. Sondergaard (2007)

Can the new open economy macroeconomic model explain exchange rate fluctuations?   ScienceDirect Required
Jung, Y. (2007)

Robust Taylor rules in an open economy with heterogeneous expectations and least squares learning   Acrobat Required
Bask, M. & C. Selander (2007)

Fiscal Shocks, the Trade Balance, and the Exchange Rate   Acrobat Required
Koray, F. & W.D. McMillin (2007)

Portfolio Choices with Near Rational Agents: A Solution to Some International-Finance Puzzles
Benigno, P. (2007)

Interest Rate Rules, Inflation Stabilization, and Imperfect Credibility: The Small Open Economy Case
Calvo, G.A. (2007)

Fiscal Policy and Default Risk in Emerging Markets   Acrobat Required
Cuadra, G. & H. Sapriza (2007)

Optimal Fiscal Policy in a Small Open Economy with Incomplete Markets and Interest Rate Shocks   Acrobat Required
Espada, J.F.C. (2007)

Optimal Fiscal Policy in a Small Open Economy and the Structure of International Financial Markets   Acrobat Required
Espada, J.F.C. (2007)

Trade Patterns, Trade Balances, and Idiosyncratic Shocks   Acrobat Required
Canals, C., X. Gabaix, J.M. Vilarrubia & D. Weinstein (2007)

The Two Crises of International Economics
Dooley, M.P., P.M. Garber & D. Folkerts-Landau (2007)

Globalization, Gluts, Innovation or Irrationality: What Explains the Easy Financing of the U.S. Current Account Deficit?
Balakrishnan, R., T. Bayoumi & V. Tulin (2007)

Long Run Macroeconomic Relations in the Global Economy
Dees, S., S. Holly, M.H. Pesaran & L.V. Smith (2007)

Financing of Global Imbalances
Walker, W.C. & M.T. Punzi (2007)

Price Setting Transactions and the Role of Denominating Currency in FX Markets   Acrobat Required
Friberg, R. & F. Wilander (2007)

Flattened Inflation-Output Tradeoff and Enhanced Anti-Inflation Policy: Outcome of Globalization?
Razin, A. & A. Binyamini (2007)

Patterns of Current Account Adjustment - Insights from Past Experience   Acrobat Required
Algierti, T. & T. Bracke (2007)

Exchange Rate Passthrough Effects and Inflation Targeting in Emerging Economies: What 3?   Wiley Interscience Required
Reyes, J. (2007)

Trade and the Diffusion of the Industrial Revolution   Recommended!
Lucas, Jr., R.E. (2007)

Abstract: A model is proposed to describe the evolution of real GDPs in the world economy that is intended to apply to all open economies. The five parameters of the model are calibrated using the Sachs-Warner definition of openness and time-series and cross-section data on incomes and other variables from the 19th and 20th centuries. The model predicts convergence of income levels and growth rates and has strong but reasonable implications for transition dynamics.

Two-Country New Keynesian DSGE Model: A Small Open Economy as a Limit Case   Acrobat Required
da Silveira, M.A.C. (2007)

Explaining the Effects of Government Spending Shocks on Consumption and the Real Exchange Rate | Published   ScienceDirect Required
Ravn, M.O., S. Schmitt-Grohe & M. Uribe (2007/12)

Measuring Long-Run Exchange Rate Pass-Through   Acrobat Required
de Bandt, O., A. Banerjee & T. Kozluk (2007)

Are All Measures of International Reserves Created Equal? An Empirical Comparison of International Reserve Ratios   Acrobat Required
Cheung, Y-W. & C Y-P. Wong (2007)

A Small Open Economy Model with Currency Mismactches and a Financial Accelerator Mechanism   Acrobat Required
Ormaechea, S.L.E.A. (2007)

Terms of Trade Shocks and Endogenous Search Unemployment: A Two-sector Model with Non-Traded goods   Acrobat Required
Sheng, Y. & X. Xu (2007)

Investment Cycles and Sovereign Debt Overhang | Published   Wiley Interscience Required
Aguiar, M., M. Amador & G. Gopinath (2007/09)

A Neoclassical Analysis of the Asian Crisis: Business Cycle Accounting of a Small Open Economy   Acrobat Required
Otsu, K. (2007)

A Microfounded Sectoral Model for Open Economies   Acrobat Required
Plasmans, J., J. Fornero & T. Michalak (2007)

Revisiting the home bias puzzle: Downside equity risk   ScienceDirect Required
Campbell, R.A. & R. Kräussl (2007)

Information Immobility and the Home Bias Puzzle
Van Nieuwerburgh, S. & L. Veldkamp (2007)

Current Account Adjustment: Some New Theory and Evidence | Published   ScienceDirect Required
Ju, J. & S-J. Wei (2007/14)

Global Current Account Imbalances and Exchange Rate Adjustment: The Role of Oil Suppliers Valuation Effects and Interest Rate Changes   Acrobat Required
Oberpriller, C.M. (2007)

Optimal Monetary Policy in a Small Open Economy Under Segmented Asset Markets and Sticky Prices
Lama, R. & J.P. Medina (2007)

Increasing Returns, Financial Capital Mobility and Real Exchange Rate Dynamics   Acrobat Required
Pennings, S. & R. Tyers (2007)

International Portfolios with Supply, Demand and Redistributive Shocks
Coeurdacier, N., R. Kollmann & P. Martin (2007)

Currency Choice and Exchange Rate Pass-through | Published
Gopinath, G., O. Itskhoki & R. Rigobon (2007)

News and Business Cycles in Open Economies
Jaimovich, N. & S. Rebelo (2007)

The International Diversification Puzzle Is Not As Bad As You Think | Published   JSTOR Required
(2014)
Heathcote, J. & F. Perri (2007/14)

Permanent vs Temporary Fiscal Expansion in a Two-Sector Small Open Economy Model   Acrobat Required
Cardi, O. & R. Restout (2007)

An Asset-Pricing View of External Adjustment | Published   ScienceDirect Required
Pavlova, A. & R. Rigobon (2007/09)

Monetary Policy, Default Risk and the Exchange Rate
Guimarães, B. & C.E. Soares Gonçalves (2007)

Precautionary Demand for Foreign Assets in Sudden Stop Economies: An Assessment of the New Merchantilism   Acrobat Required
Durdu, C.B., M. Terrones & E.G. Mendoza (2007)

Asset Prices, Exchange Rates and the Current Account | Published   Acrobat Required   ScienceDirect Required
Fratzscher, M., L. Juvenal & L. Sarno (2007/10)

Monetary Policy Coordination Revisited in a Two-Bloc DSGE Model   Acrobat Required
Levine, P., J. Pearlman & R. Pierse (2007)

Optimal Monetary Policy and the Sources of Local-Currency Price Stability
Corsetti, G., L. Dedola & S. Leduc (2007)

Globalization and Inflation Dynamics: the Impact of Increased Competition
Sbordone, A.M. (2007)

Optimal monetary policy with a regime-switching exchange rate in a forward-looking model   Acrobat Required
Alexandre, F., P. Bação & J. Driffill (2007)

The Complex Response of Monetary Policy to the Exchange Rate   Acrobat Required
Milas, C., C. Martin & R.S. Kharel (2007)

Welfare Implications of Exchange Rate Changes
Marques, L.B. (2007)

Long swings and chaos in the exchange rate in a DSGE model with a Taylor rule   Acrobat Required
Bask, M. (2007)

New Open Economy Macroeconomics   SURVEY PAPER
Corsetti, G. (2007)

Instrument rules in monetary policy under heterogeneity in currency trade   Acrobat Required
Bask, M. (2007)

The Transmission of Domestic Shocks in the Open Economy   Acrobat Required
Erceg, E.J., C. Gust & D. Lopez-Salido (2007)

Quantitative implications of indexed bonds in small open economies
Durdu, C.B. (2007)

Financial Globalization and Monetary Policy
Devereux, M.B. & A. Sutherland (2007)

External Shocks, Bank Lending Spreads, and Output Fluctuations   Wiley Interscience Required
Agénor, P-R., J. Aizenman & A.W. Hoffmaister (2008)

Variable Rare Disasters: An Exactly Solved Framework for Ten Puzzles in Macro-Finance   Recommended!
Gabaix, X. (2008)

Abstract: This paper incorporates a time-varying intensity of disasters in the Rietz-Barro hypothesis that risk premia result from the possibility of rare, large disasters. During a disaster, an asset's fundamental value falls by a time-varying amount. This in turn generates time-varying risk premia and thus volatile asset prices and return predictability. Using the recent technique of linearity-generating processes (Gabaix 2007), the model is tractable, and all prices are exactly solved in closed form. In the "variable rare disasters" framework, the following empirical regularities can be understood qualitatively: (i) equity premium puzzle (ii) risk-free rate-puzzle (iii) excess volatility puzzle (iv) predictability of aggregate stock market returns with price-dividend ratios (v) value premium (vi) often greater explanatory power of characteristics than covariances for asset returns (vii) upward sloping nominal yield curve (viiii) a steep yield curve predicts high bond excess returns and a fall in long term rates (ix) corporate bond spread puzzle (x) high price of deep out-of-the-money puts. I also provide a calibration in which those puzzles can be understood quantitatively as well. The fear of disaster can be interpreted literally, or can be viewed as a tractable way to model time-varying risk-aversion or investor sentiment.

Interest-rate rules and transitional dynamics in an endogenously growing open economy   ScienceDirect Required
Chen, S-H., M-F. Shaw, C-C. Lai and J-J. Chang (2008)

Evidence of purchasing power parity for the floating regime period   ScienceDirect Required
Lopez, C. (2008)

Global Forces and Monetary Policy Effectiveness
Boivin, J. & M. Giannoni (2008)

Country Portfolio Dynamics | Published   ScienceDirect Required   Acrobat Required
Devereux, M.B. & A. Sutherland (2008/10)

Solving for Country Portfolios in Open Economy Macro Models   Acrobat Required
Devereux, M.B. & A. Sutherland (2008)

Liquidity trap and optimal monetary policy in open economies   ScienceDirect Required
Nakajima, T. (2008)

Monetary Policy Analysis in a Small Open Credit-Based Economy   Acrobat Required
Agénor, P-R. & P.J. Montiel (2008)

Exchange Rate Volatility and First-Time Entry by Multinational Firms
Russ, K.N. (2008)

Terms of trade and current account fluctuations: The Harberger–Laursen–Metzler effect revisited   ScienceDirect Required
Bouakez, H. & T. Kano (2008)

Varieties and the Transfer Problem: The Extensive Margin of Current Account Adjustment
Corsetti, G., P. Martin & P. Pesenti (2008)

Emerging Markets in an Anxious Global Economy   Acrobat Required
Fostel, A. & J. Geanakoplos (2008)

A Small Structural Monetary Policy Model for Small Open Economies with Debt Accumulation
Karam, P.D. & A. Pagan (2008)

International Evidence on Sticky Consumption Growth
Carroll, C.D., J. Slacalek & M. Sommer (2008)

Business Cycles in Small Developed Economies: The Role of Terms of Trade and Foreign Interest Rate Shocks
Guajardo, J. (2008)

Current Account Dynamics and Monetary Policy
Ferrero, A., M. Gertler & L.E.O. Svensson (2008)

Interest Rates and the Exchange Rate: A Non-Monotonic Tale | Published   ScienceDirect Required
(2013)
Hnatkovska, V., A. Lahiri & C.A. Vegh (2008/13)

Exchange rates, optimal debt composition, and hedging in small open economies
Berrospide, J. (2008)

Accounting for persistence and volatility of good-level real exchange rates: the role of sticky information | Published   Acrobat Required   ScienceDirect Required
Crucini, M.J., M. Shintani & Tsuruga (2008/10)

Currency Substitution and Financial Repression   Acrobat Required
Gupta, R. (2008)

Inflation Targeting in a Small Open Economy   Wiley Interscience Required
Cuche-Curti, N.A., H. Dellas & J-M. Natal (2008)

A Regime Switching Analysis of Exchange Rate Pass-through   Acrobat Required
Hernández. K. & A. Leblebicioglu (2008)

Tax Cuts in Open Economies   Acrobat Required
Cuñat, A., S. Deak & M. Maffezzoli (2008)

Financial integration and the wealth effect of exchange rate fluctuations   ScienceDirect Required
Tille, C. (2008)

Relative Factor Endowments and International Portfolio Choice
Cuñat, A. & C. Fons-Rosen (2008)

Oil Price Shocks, Macroeconomics Stability and Welfare in a Small Open Economy   Acrobat Required
Unalmis, D., I. Unalmis & D.F. Unsal (2008)

The exchange rate and optimal monetary policy rules in open and developing economies: Some simple analytics   ScienceDirect Required
Cavolia, T. (2008)

Procyclical Fiscal Policy in Developing Countries: Truth or Fiction?
Ilzetzki, E. & C.A. Vegh (2008)

Frequency of Price Adjustment and Pass-through
Gopinath, G. & O. Itskhoki (2008)

Welfare-Based Optimal Monetary Policy in a Two-Sector Small Open Economy   Acrobat Required
Rychalovska, Y. (2008)

Monetary policy in the open economy revisited: The case for exchange-rate flexibility restored   ScienceDirect Required
Duarte, M. & M. Obstfeld (2008)

Monetary policy rules and the exchange rate   ScienceDirect Required
Berger, W. (2008)

Robust monetary policy in a small open economy   ScienceDirect Required
Leitemo, K. & U. Söderström (2008)

Productivity, Preferences and UIP Deviations in an Open Economy Business Cycle Model   Acrobat Required
Bhattacharjee, A., J.S. Chadha & Q. Sun (2008)

Financial Accelerator Mechanism in a Small Open Economy   Acrobat Required
López, M., J.D. Prada & N.R. Niño (2008)

Global Imbalances: Globalization, Demography, and Sustainability   Ingenta Select Required
Cooper, R.N. (2008)

Resolving the Global Imbalance: The Dollar and the U.S. Saving Rate   Ingenta Select Required
Feldstein, M. (2008)

Money, Crises, and Transition: Essays in Honor of Guillermo A. Calvo   Recommended!   FESTSCHRIFT
Reinhart, C.M., C.A. Végh & A. Velasco (editors) (2008)

Abstract: Essays by prominent scholars and policymakers honor one of the most influential macroeconomists of the last thirty years, discussing the themes behind his work.

Inventories, lumpy trade, and large devaluations   Acrobat Required
Alessandria, G., J. Kaboski & V. Midrigan (2008)

Current Account Sustainability and Relative Reliability
Curcuru, S.E., C.P. Thomas & F.E. Warnock (2008)

Imperfect exchange rate pass-through: the role of distribution services and variable demand elasticity   Acrobat Required
Jeanfils, P. (2008)

Understanding changes in exchange rate pass-through   Acrobat Required
Takhtamanova, Y. (2008)

Are shocks to the terms of trade shocks to productivity?   ScienceDirect Required
Kehoe, T.J. & K.J. Ruhl (2008)

Tax Reforms, "Free Lunches", and "Cheap Lunches" in Open Economies
Ganelli, G. & J. Tervala (2008)

Taylor rules with real-time data: A tale of two countries and one exchange rate   ScienceDirect Required
Molodtsova, T., A. Nikolsko-Rzhevskyy & D.H. Papell (2008)

Import price dynamics in major advanced economies and heterogeneity in exchange rate pass-through   Acrobat Required
Dées, S., M. Burgert & N. Parent (2008)

Inflation-Output Tradeoff as Equilibrium Outcome of Globalization
Binyamini, A. & A. Razin (2008)

New Keynesian Exchange Rate Pass-Through   Acrobat Required
Cook, D. & W.G. Choi (2008)

International evidence on fiscal solvency: Is fiscal policy “responsible”?   ScienceDirect Required
Mendoza, E.G. & J.D. Ostry (2008)

Price Level Targeting in a Small Open Economy with Financial Frictions: Welfare Analysis   Acrobat Required
Dib, A., C. Mendicino & Y. Zhang (2008)

Fiscal policy and the structure of production in a two-sector developing economy   ScienceDirect Required
Turnovsky, S.J. & Md.A. Basher (2008)

The macroeconomic consequences of disasters   ScienceDirect Required
Noy, I. (2008)

Productivity, Preferences and UIP deviations in an Open Economy Business Cycle Model   Acrobat Required
Bhattacharjee, A., J.S. Chadha & Q. Sun (2008)

Monetary Policy Trade-Offs in an Estimated Open-Economy DSGE Model | Published   ScienceDirect Required
Adolfson, M., S. Laseen, J. Linde & L.E.O. Svensson (2008)

Dynamic Factor Price Equalization & International Income Convergence
Francois, J. & C.R. Shiells (2008)

Estimating the parameters of a small open economy DSGE model: identifiability and inferential validity
Beltran, D.O. & D. Draper (2008)

Can Structural Small Open Economy Models Account for the Influence of Foreign Disturbances?
Justiniano, A. & B. Preston (2008)

Inflation Targeting and Real Exchange Rates in Emerging Markets | Published   ScienceDirect Required
Aizenman, J., M. Hutchison & I. Noy (2008/11)

Optimal Simple Monetary Policy Rules in a Small Open Economy with Exchange Rate Imperfections   Acrobat Required
Luo, D. & S. Ferris (2008)

New Shocks, Exchange Rates and Equity Prices   Acrobat Required
Matsumoto, A., P. Cova, M. Pisani & A. Rebucci (2008)

Fiscal Storms: Inflation Targeting and Real Exchange Rates in Emerging Markets   Acrobat Required
Aizenman, J., M. Hutchison & I. Noy (2008)

The International Diversification Puzzle when Goods Prices are Sticky: It's Really about Exchange-Rate Hedging, not Equity Portfolios
Engel, C. & A. Matsumoto (2009)

Exchange rate pass-through in the global economy – the role of emerging market economies   Acrobat Required
Bussière, M. & T. Peltonen (2008)

Optimal monetary policy for a small open economy   ScienceDirect Required
Divino, J.A. (2009)

Monetary and Fiscal Rules in an Emerging Small Open Economy
Batini, N., P. Levine & J. Pearlman (2009)

On the International Dimension of Fiscal Policy   Acrobat Required
Benigno, G. & B. De Paoli (2009)

International Portfolio Allocation under Model Uncertainty | Published
Benigno, P. & S. Nistico (2009/12)

Exchange Rates and Wages in an Integrated World | Published
Mishra, P. & A. Spilimbergo (2009/11)

Elasticity Optimism   Recommended!
Imbs, J. & I. Mejean (2009)

Abstract: Estimates of the elasticity of substitution between domestic and foreign varieties are small in macroeconomic data, and substantially larger in disaggregated studies. This may be an artifact of heterogeneity. We use disaggregated multilateral trade data to structurally identify elasticities of substitution in US goods. We spell out a partial equilibrium model to aggregate them adequately at the country level. We compare aggregate elasticities that impose equality across sectors, to estimates allowing for heterogeneity. The former are similar in value to conventional macroeconomic estimates; but they are more than twice larger -up to 7- with heterogeneity. The parameter is central to calibrated models in most of international economics. We discuss the difference our corrected estimate makes in various areas of international economics, including the dynamics of external balances, the international transmission of shocks, international portfolio choice and optimal monetary policy.

Private information, stock markets, and exchange rates
Gyntelberg, J., M. Loretan, T. Subhanij & E. Chan (2009/13)

Investment and trade patterns in a sticky-price, open-economy model   Acrobat Required
Martinez-Garcia, E. & J. Sondergaard (2009)

Valuation Effects and the Dynamics of Net External Assets | Published   ScienceDirect Required
Devereux, M.B. & A. Sutherland (2009)

Fiscal policy and default risk in emerging markets
Cuadra, G., J.M. Sanchez & H. Sapriza (2009)

Foreign exchange rate risk in a small open economy   Acrobat Required
De Paoli, B. & J. Sondergaard (2009)

Risk Matters: The Real Effects of Volatility Shocks | Published
Fernández-Villaverde, J., P.A. Guerrón-Quintana, J. Rubio-Ramírez & M. Uribe (2009/11)

Fiscal Stimulus with Spending Reversals
Corsetti, G., A. Meier & G. Müller (2009)

Modeling with Macro-Financial Linkages: Credit and Policy Shocks in Emerging Markets
Benes, J., I. Ötker & D. Vávra (2009)

Does Trade Integration Alter Monetary Policy Transmission?   Acrobat Required
Cwik, T.J., G.J. Müller & M. Wolters (2009)

Accounting for Global Dispersion of Current Accounts   Acrobat Required
Chang, Y., S-B. Kim & J. Lee (2009)

Estimating Multicountry VAR Model   Recommended!   Wiley Interscience Required
Canova, F. & M. Ciccarelli (2009)

Abstract: This article presents a method to estimate the coefficients, to test specification hypotheses, and to conduct policy exercises in multicountry Vector Autoregressive (VAR) models with cross-unit interdependencies, unit-specific dynamics, and time variations in the coefficients. The framework of analysis is Bayesian: A prior flexibly reduces the dimensionality of the model and puts structure on the time variations, Markov chain Monte Carlo (MCMC) methods are used to obtain posterior distributions, and marginal likelihoods to check the fit of various specifications. Impulse responses and conditional forecasts are obtained with the output of an MCMC routine. The transmission of certain shocks across countries is analyzed.

International Risk Sharing: Through Equity Diversification or Exchange Rate Hedging?
Engel, C. & A. Matsumoto (2009)

Equity Returns and Business Cycles in Small Open Economies
Jahan-Parvar, M.R.; X. Liu & P. Rothman (2009)

International Welfare and Employment Linkages Arising from Minimum Wages
Egger, H., P. Egger & J.R. Markusen (2009)

Trending Current Accounts
Choi, H. & N.C. Mark (2009)

International Evidence on Recovery from Recessions
Cerra, V., U. Panizza & S.C. Saxena (2009)

Composition and growth effects of the current account: A synthesized portfolio view   ScienceDirect Required
Guo, K. & K. Jin (2009)

Exchange Rates, Oil Price Shocks, and Monetary Policy in an Economy with Traded and Non-Traded Goods   Acrobat Required
Plante, M. (2009)

Reflections on Milton Friedman's contributions to open economy money/macro   ScienceDirect Required
Boyer, R.S. (2009)

Consumption smoothing channels in open economies   ScienceDirect Required
Asdrubali, P. & S. Kim (2009)

'The Meaning of Internal Balance' Thirty Years On   Wiley Interscience Required
Bean, C. (2009)

Habit persistence and effectiveness of fiscal policy in an open economy   Acrobat Required
Cardi, O. (2009)

How do different exporters react to exchange rate changes? Theory, empirics and aggregate implications   Recommended!
Berman, N., P. Martin & T. Mayer (2009)

Abstract: This paper analyzes the reaction of exporters to exchange rate changes. We present a model where, in the presence of distribution costs in the export market, high and low productivity firms react differently to a depreciation . Whereas high productivity firms optimally raise their markup rather than the volume they export, low productivity firms choose the opposite strategy. Hence, pricing to market is both endogenous and heterogenous. This heterogeneity has important consequences for the aggregate impact of exchange rate movements. The presence of fixed costs to export means that only high productivity firms can export, firms which precisely react to an exchange rate depreciation by increasing their export price rather than their sales. We show that this selection effect can explain the weak impact of exchange rate movements on aggregate export volumes. We then test the main predictions of the model on a very rich French firm level data set with destination-specific export values and volumes on the period 1995-2005. Our results confirm that high performance firms react to a depreciation by increasing their export price rather than their export volume. The reverse is true for low productivity exporters. Pricing to market by exporters is also more pervasive in sectors and destination countries with higher distribution costs. Consistent with our theoretical framework, we show that the probability of firms to enter the export market following a depreciation increases. The extensive margin response to exchange rate changes is modest at the aggregate level because firms that enter, following a depreciation, are smaller relative to existing firms.

How important is the currency denomination of exports in open-economy models?   Acrobat Required
Dotsey, M. & M. Duarte (2009)

Unconventional Central Bank Measures for Emerging Economies
Ishi, K., M.R. Stone & E.B. Yehoue (2009)

Fiscal Deficits and Current Account Deficits | Published   ScienceDirect Required
Kumhof, M. & D. Laxton (2009/13)

State-dependent pricing, local-currency pricing, and exchange rate pass-through | Published   Acrobat Required   ScienceDirect Required
Landry, A. (2009/10)

International Competition and Inflation: A New Keynesian Perspective
Guerrieri, L., C. Gust & J.D. López-Salido (2009)

External imbalances and collateral constraints in a two-country world   Acrobat Required
Iliopulos, E. (2009)

The Feldstein-Horioka fact
Giannone, D. & M. Lenza (2009)

Credit Crunch in a Small Open Economy | Published   ScienceDirect Required
Brzoza-Brzezina, M. & K. Makarski (2009/11)

Globalization, the output–inflation tradeoff and inflation   ScienceDirect Required
Badinger, H. (2009)

Taylor rules in the open economy   ScienceDirect Required
Leith, C. & S. Wren-Lewis (2009)

Accounting for Global Dispersion of Current Accounts
Chang, Y., S-B. Kim & J. Lee (2009)

The Valuation Channel of External Adjustment
Ghironi, F., J. Lee & A. Rebucci (2009)

Endogenous tradability and some macroeconomic implications   ScienceDirect Required
Bergin, P.R. & R. Glick (2009)

Understanding the Backus–Smith puzzle: It's the (nominal) exchange rate, stupid   ScienceDirect Required
Hess, G.D. & K. Shin (2010)

Price adjustment and exchange rate pass-through   ScienceDirect Required
Devereux, M.B. & J. Yetman (2010)

A Small Open Economy with Heterogenous Agents Facing Interest Rate Ceilings on Loans
Arend, M. (2009)

Debt consolidation and fiscal stabilization of deep recessions
Corsetti, G., K. Kuester, A. Meier & G. Müller (2010)

Interest rate pass-through, monetary policy rules and macroeconomic stability   ScienceDirect Required
Kwapil, C. & J. Scharler (2010)

Current Account Balance Estimates for Emerging Market Economies
Medina, L., J. Prat & A.H. Thomas (2010)

Fiscal Multipliers and the Labour Market in the Open Economy   Acrobat Required
Faia, E., W. Lechthaler & C. Merkl (2010)

Globalization and the Output-inflation Tradeoff: New Time Series Evidence
Eijffinger, S.C.W. & Z. Qian (2010)

The U.S. trade imbalance and real exchange rate: An application of the heterogeneous panel cointegration method   ScienceDirect Required
Chiu, Y-B., C-C. Lee & C-H. Sun (2010)

The Timing of Asset Trade and Optimal Policy in Dynamic Open Economies   Acrobat Required
Senay, O. & A. Sutherland (2010)

Globalization, Pass-Through and Inflation Dynamic
Benigno, P. & E. Faia (2010)

The Composition and Cyclical Behavior of Trade Flows in Emerging Economies
De Bock, R. (2010)

Monetary policy in a small open economy with durable goods and differing cash-in-advance constraints   ScienceDirect Required
Mansoorian, A. & L. Michelis (2010)

Solving the Feldstein–Horioka Puzzle With Financial Frictions   Wiley Interscience Required
Bai, Y. & J. Zhang (2010)

Fiscal Multipliers and the Labour Market in the Open Economy   Acrobat Required
Faia, E., W. Lechthaler & C. Merkl (2010)

On the Sources of Aggregate Fluctuations in Emerging Economies
Chang, R. & A. Fernandez (2010)

Debt Policy and Economic Growth in a Small Open Economy Model with Productive Government Spending
Futagami, K., T. Hori & R. Ohdoi (2010)

Size, openness, and macroeconomic interdependence   Acrobat Required
Chudik, A. & R. Straub (2010)

Measuring Monetary Policy in Open Economies
Cerdeiro, D.A. (2010)

Rethinking Multipliers in a Globalized World
Nallari, R. & L.E. Mba (2010)

Intermediate goods trade and exchange rate pass-through   ScienceDirect Required
Shi, K. & J. Xu (2010)

Fiscal Policy and the Current Account   Recommended!
Abbas, S. M.A., J. Bouhga-Hagbe, A.J. Fatas, P. Mauro & R. Velloso (2010)

Abstract: This paper examines the relationship between fiscal policy and the current account, drawing on a larger country sample than in previous studies and using panel regressions, vector autoregressions, and an analysis of large fiscal and external adjustments. On average, a strengthening in the fiscal balance by 1 percentage point of GDP is associated with a current account improvement of 0.2-0.3 percentage point of GDP. This association is as strong in emerging and low-income countries as it is in advanced economies; and significantly higher when output is above potential.

Assessing the fit of small open economy DSGEs   ScienceDirect Required
Matheson, T. (2010)

The butterfly effect of small open economies   ScienceDirect Required
Jääskelä, J.P. & M. Kulish (2010)

A Sexually Unbalanced Model of Current Account Imbalances
Du, Q. & S-J. Wei (2010)

In Search of Real Rigidities
Gopinath, G. & O. Itskhoki (2010)

Budget Consolidation: Short-Term Pain and Long-Term Gain
Clinton, K., M. Kumhof, D. Laxton & S. Mursula (2010)

Does Inflation Targeting decrease Exchange Rate Pass-through in Emerging Countries?   Acrobat Required
Coulibaly, D. & H. Kempf (2010)

Can trade costs in goods explain home bias in assets?   ScienceDirect Required
van Wincoop, E. & F.E. Warnock (2010)

A New Keynesian Open Economy Model for Policy Analysis
Carlin, W. & D. Soskice (2010)

International Differences in Fiscal Policy During the Global Crisis
Benetrix, A.S. & P.R. Lane (2010)

The Effects of Foreign Shocks When Interest Rates Are at Zero
Bodenstein, M., C. Erceg & L. Guerrieri (2010)

Habit Formation and Fiscal Transmission in Open Economies | Published   ScienceDirect Required
Cardi, O. & G. Müller (2010/11)

Wage-setting patterns and monetary policy: International evidence   ScienceDirect Required
Olivei, G. & S. Tenreyro (2010)

Asset Prices, News Shocks and the Current Account
Fratzscher, M. & R. Straub (2010)

Optimal monetary policy in open economies
Corsetti, G., L. Dedola & S. Leduc (2010)

How Big (Small?) are Fiscal Multipliers? | Published   ScienceDirect Required
Ilzetzki, E., E.G. Mendoza & C.A. Vegh (2010/13)

Financial Development, Technological Change in Emerging Countries and Global Imbalances   Acrobat Required
Benhima, K. (2010)

Technology Capital and the US Current Account
McGrattan, E.R. & E.C. Prescott (2010)

Monetary Policy Shocks and Portfolio Choice
Fratzscher, M., C. Saborowski & R. Straub (2010)

Global policy at the Zero Lower Bound in a large-scale DSGE model   Acrobat Required
Gomes, S., P. Jacquinot, R. Mestre & J. Sousa (2010)

The effects of capital market openness on exchange rate pass-through and welfare in an inflation-targeting small open economy   Acrobat Required
Mukherjee, S. (2010)

World Food Prices and Monetary Policy | Published   ScienceDirect Required
Catao, L. & R. Chang (2010/15)

Real Business Cycles in Emerging Countries?
García-Cicco, J., R. Pancrazi & M. Uribe (2010)

The Term Structure of Interest Rates in Small Open Economy DSGE Model   Acrobat Required
Maršál, A. (2010)

Bilateral Trade, Openness and Asset Holdings   Acrobat Required
Peter, A. (2010)

Inside the black box: How important is the credit channel relative to the interest and exchange rate channels?   ScienceDirect Required
Claus, I. (2011)

Unexploited Gains from International Diversification: Patterns of Portfolio Holdings Around the World
Didier, T., R. Rigobon & S.L. Schmukler (2010)

International Macro-Finance
Pavlova, A. & R. Rigobon (2010)

A Simple Model of the Relationship Between Productivity, Saving and the Current Account
Fournier, J-M. & I. Koske (2010)

Monetary policy transmission in an emerging market setting
Bhattacharya, R., I. Patnaik & A. Shah (2010)

The Demand for Liquid Assets, Corporate Saving, and Global Imbalances   Acrobat Required
Bacchetta, P. & K. Benhima (2010)

Money Supply Rules and Exchange Rate Dynamics   Acrobat Required
Tervala, J. (2010)

Unexploited Gains from International Diversification: Patterns of Portfolio Holdings around the World
Didier, T., R. Rigobon & S.L. Schmukler (2011)

The home bias in equities and distribution costs   Acrobat Required
Harms, P., M. Hoffmann & C. Ortseifer (2011)

International portfolio diversification is better than you think   ScienceDirect Required
Coeurdacier, N. & S. Guibaud (2011)

International Risk Sharing in the Short Run and in the Long Run
Baxter, M. (2011)

Historical Oil Shocks
Hamilton, J.D. (2011)

Oil shocks and external adjustment   ScienceDirect Required
Bodenstein, M., C.J. Erceg & L. Guerrieri (2011)

Current Account Rebalancing and Real Exchange Rate Adjustment Between the U.S. and Emerging Asia
Méjean, I., P. Rabanal & D. Sandri (2011)

Fiscal Rules in a Volatile World: A Welfare-Based Approach
Garcia, C., J. Restrepo & E. Tanner (2011)

Global Liquidity Trap | Published   ScienceDirect Required
Fujiwara, I., T. Nakajima, N. Sudo & Y. Teranishi (2011/13)

Imperfect Information and Saving in a Small Open Economy
Daude, C. & A. Roitman (2011)

A further contribution towards explaining why disinflation through currency pegging may cause a boom   ScienceDirect Required
Fender, J. & N. Rankin (2011)

A general equilibrium open economy model for emerging markets: Monetary policy with a dualistic labor market   ScienceDirect Required
Goyal, A. (2011)

The global dimension to fiscal sustainability   ScienceDirect Required
Byrne, J.P., N. Fiess & R. MacDonald (2011)

Inflation persistence and exchange rate regime: Implications for dynamic adjustment to shocks in a small open economy   ScienceDirect Required
Kuralbayeva, K. (2011)

Real indeterminacy and the timing of money in open economies   Acrobat Required
McKnight, S. (2011)

Measuring International Risk-Sharing: Theoretical Issues and Empirical Evidence from OECD Countries   Acrobat Required
Viani, F. (2011)

Investment and interest rate policy in the open economy   Acrobat Required
McKnight, S. (2011)

Structural change in an open economy | Published   Acrobat Required   ScienceDirect Required
Uy, T., K-M. Yi & J. Zhang (2011)

Learning as a Rational Foundation for Macroeconomics and Finance
Evans, G.W. & S. Honkapohja (2011)

The International Risk-Sharing Puzzle is at Business Cycle and Lower Frequency
Corsetti, G., L. Dedola & F. Viani (2011)

The current account and precautionary savings for exporters of exhaustible resources   ScienceDirect Required
Bems, R. & I. de Carvalho Filho (2011)

Long-run growth expectations and 'global imbalances'   Acrobat Required
Hoffmann, M., M. Krause & T. Laubach (2011)

Portfolio Allocation and International Risk Sharing   Acrobat Required
Benigno, G. & H. Küçük-Tuger (2011)

Exchange Rates and Global Rebalancing   Acrobat Required
Eichengreen, B. & G. Rua (2011)

Rebalancing Growth in China: An International Perspective
Benassy-Quere, A., B. Carton & L. Gauvin (2011)

The dynamics of economic convergence: The role of alternative investment decisions   ScienceDirect Required
Bruhaa, J. & J. Podpiera (2011)

Optimal Monetary Policy and Social Insurance in a Small Open Economy
Lama, R. & J.P. Medina (2011)

Supply-side effects of exchange rates, exchange rate expectations and induced currency depreciation   ScienceDirect Required
Ali, S.Z. & S. Anwar (2011)

Financial frictions and optimal monetary policy in an open economy   Acrobat Required
Kolasa, M. & G. Lombardo (2011)

A Small Open Economy New Keynesian DSGE model for a foreign exchange constrained economy
Regassa, S.S. (2011)

Exchange-Rate-Based Stabilisation, Durables Consumption and the Stylised Facts   Wiley Interscience Required
Buffie, E.F. & M. Atolia (2011)

Business Cycles in Emerging Markets: The Role of Durable Goods and Financial Frictions
Alvarez-Parra, F., B. Marques & M. Toledo (2011)

Optimal fiscal policy in a world liquidity trap   ScienceDirect Required
Cook, D. & M.B. Devereux (2011)

Financial remoteness and the net external position   Acrobat Required
Schmitz, M. (2011)

International diversification benefits with foreign exchange investment styles   Acrobat Required
Kroencke, T.A., F. Schindler & A. Schrimpf (2011)

House Price Booms and the Current Account
Adam, K., P. Kuang & A. Marcet (2011)

Global Asset Pricing   SURVEY PAPER
Lewis, K.K. (2011)

Country Heterogeneity and the International Evidence on the Effects of Fiscal Policy
Favero, C.A., F. Giavazzi & J. Perego (2011)

Financial frictions and optimal monetary policy in an open economy   Acrobat Required
Kolasa, M. & G. Lombardo (2011)

Sharing the Burden: Monetary and Fiscal Responses to a World Liquidity Trap | Published
Cook, D. & M.B. Devereux (2011)

Uninsurable risk and financial market puzzles   ScienceDirect Required
Basu, P., A. Semenov & K. Wada (2011)

Foreign bank penetration and the lending channel in emerging economies: Evidence from bank-level panel data   ScienceDirect Required
Wu, J., A.C. Luca & B.N. Jeon (2011)

Ramsey policies in a small open economy with sticky prices and capital   ScienceDirect Required
Auray, S., B. de Blas & A. Eyquem (2011)

Asset Liquidity and International Portfolio Choice | Published   ScienceDirect Required
(2014)
Geromichalos, A. & I. Simonovska (2011/14)

Inflation Persistence and Exchange Rate Regime: Implications for dynamic adjustment to shocks in a small open economy   Acrobat Required
Kuralbayeva, K. (2011)

Financial openness, financial frictions and optimal monetary policy   ScienceDirect Required
Faia, E. & E. Iliopulos (2011)

International Prices, Costs, and Markup Differences
Gopinath, G., P-O. Gourinchas, C-T. Hsieh & N. Li (2011)

Traded and Nontraded Goods Prices, and International Risk Sharing: an Empirical Investigation
Corsetti, G., L. Dedola & F. Viani (2011)

Speculation and Risk Sharing with New Financial Assets
Simsek, A. (2011)

Monetary policy and the exchange rate: Evaluation of VAR models   ScienceDirect Required
Jääskelä, J.P. & D. Jennings (2011)

Real exchange rate dynamics revisited: A case with financial market imperfections   Wiley Interscience Required
Fujiwara, I. & Y. Teranishi (2011)

Financial integration and business cycles in a small open economy   Wiley Interscience Required
Cakici, S.M. (2011)

Precautionary Savings in a Small Open Economy Revisited
Roitman, A. (2011)

Exchange Rate Pass-Through and Credit Constraints: Firms Price to Market as Long as They Can | Published   Acrobat Required   ScienceDirect Required
Strasser, G.H. (2011/13)

Exchange Rate Exposure under Liquidity Constraints   Acrobat Required
Guillou, S. & S. Schiavo (2011)

When Bonds Matter: Home Bias in Goods and Assets | Published   ScienceDirect Required
Coeurdacier, N. & P-O. Gourinchas (2011/16)

How much of the diversification discount can be explained by poor corporate governance?   ScienceDirect Required
Hoechle, D., M. Schmid, I. Walter & D. Yermack (2011)

Credit Crises, Precautionary Savings, and the Liquidity Trap
Guerrieri, V. & G. Lorenzoni (2011)

A New Open Economy Macroeconomic Model with Endogenous Portfolio Diversification and Firms Entry   Acrobat Required
Arespa, M. (2011)

Optimal Fiscal Policy in a Small Open Economy with Limited Commitment | Published   ScienceDirect Required   Acrobat Required
Bauducco, S. & F. Caprioli (2011/14)

Introducing financial frictions and unemployment into a small open economy model   ScienceDirect Required
Christiano, L.J., M. Trabandt & K. Walentin (2011)

Housing and Banking in a Small Open Economy DSGE Model   Acrobat Required
Ajevskis, V. & K. Vitola (2011)

An estimated small open economy model with frictional unemployment   Acrobat Required
Albertini, J., G. Kamber & M. Kirker (2011)

Home Bias in Open Economy Financial Macroeconomics | Published
Coeurdacier, N. & H. Rey (2012/13)

Multilateral economic cooperation and the international transmission of fiscal policy
Corsetti, G. & G. Müller (2012)

Nominal Stability and Financial Globalization
Devereux, M.B., A. Sutherland & O. Senay (2011)

Monetary policy and unemployment in open economies   Acrobat Required
Engler, P. (2011)

The Risk Premium and Long-Run Global Imbalances | Published   Acrobat Required   ScienceDirect Required
Chien, Y. & K. Naknoi (2011/15)

Common and idiosyncratic disturbances in developed small open economies   Acrobat Required
Guerron-Quintana, P.A. (2012)

Government Spending, Monetary Policy, and the Real Exchange Rate   Acrobat Required
Bouakez, H. & A. Eyquem (2011)

Unanticipated vs. Anticipated Tax Reforms in a Two-Sector Open Economy   Acrobat Required
Cardi, O. & R. Restout (2012)

Financial friction in an emerging economy   ScienceDirect Required
Hwang, Y-N. (2012)

International welfare effects of monetary policy   ScienceDirect Required
Tervala, J. (2012)

Fiscal deficits, banking crises and policy reversal in a semi-open economy   ScienceDirect Required
Sharma, A. & R. Jha (2012)

Input versus output taxation in an experimental international economy   ScienceDirect Required
Riedl, A. & F. van Winden (2012)

Portfolio Allocation and International Risk Sharing
Benigno, G. & H. Küçük (2012)

Housing market and current account imbalances in the international economy | Published   Acrobat Required   Wiley Interscience Required
Punzi, M.T. (2012/13)

Fiscal Devaluations   Recommended!
Farhi, E., G. Gopinath & O. Itskhoki (2011)

Abstract: We show that even when the exchange rate cannot be devalued, a small set of conventional fiscal instruments can robustly replicate the real allocations attained under a nominal exchange rate devaluation in a standard New Keynesian open economy environment. We perform the analysis under alternative pricing assumptions-- producer or local currency pricing, along with nominal wage stickiness; under alternative asset market structures, and for anticipated and unanticipated devaluations. There are two types of fiscal policies equivalent to an exchange rate devaluation--one, a uniform increase in import tariff and export subsidy, and two, a value-added tax increase and a uniform payroll tax reduction. When the devaluations are anticipated, these policies need to be supplemented with a consumption tax reduction and an income tax increase. These policies have zero impact on fiscal revenues. In certain cases equivalence requires, in addition, a partial default on foreign bond holders. We discuss the issues of implementation of these policies, in particular, under the circumstances of a currency union.

Understanding International Prices: Customers as Capital
Drozd, L.A. & J.B. Nosal (2012)

Macroeconomic Effects of Financial Shocks
Jermann, U. & V. Quadrini (2012)

International Consumption Risk Is Shared After All: An Asset Return View
Lewis, K.K. & E.X. Liu (2012)

Current Account Imbalances: Can Structural Policies Make a Difference?
Ivanova, A. (2012)

Indirect Tax Initiatives and Global Rebalancing
Li, C. & J. Whalley (2012)

Exchange Rate Pass-Through, Domestic Competition,and Inflation: Evidence from the 2005/08 Revaluationof the Renminbi   Acrobat Required
Auer, R.A. (2012)

Global Imbalances in a World of Inflexible Real Exchange Rates and Capital Controls
Hughes Hallett, A. & J.C. Martinez Oliva (2012)

A Tale of Tax Policies in Open Economies | Published   Acrobat Required   Wiley Interscience Required
Auray, S., A. Eyquem & P. Gomme (2012/16)

Multilateral Resistance to International Portfolio Diversification
Bergin, P.R. & J.H. Pyun (2012)

Debt Deleveraging and The Exchange Rate | Published   ScienceDirect Required
Benigno, P. & F. Romei (2012/14)

The natural rate of interest in a small open economy   Acrobat Required
de Holanda Barbosa, F. (2012)

Fiscal Consolidation in an Open Economy | Published
Erceg, C. & J. Lindé (2012)

Interest Rate Rules, Endogenous Cycles, and Chaotic Dynamics in Open Economies
Airaudo, M. & L-F. Zanna (2012)

What Determines Government Spending Multipliers?
Corsetti, G., A. Meier & G. Müller (2012)

Growth-Rate and Uncertainty Shocks in Consumption: Cross-Country Evidence
Nakamura, E., D. Sergeyev & J. Steinsson (2012)

Overcoming the Fear of Free Falling: Monetary Policy Graduation in Emerging Markets
Vegh, C.A. & G. Vuletin (2012)

International equity and bond positions in a DSGE model with variety risk in consumption   Acrobat Required
Masashige, H. (2012)

Transitional Dynamics of Disinflation in a Small Open Economy with Heterogeneous Agents
Sunel, E. (2012)

Downward Nominal Wage Rigidity, Currency Pegs, and Involuntary Unemployment | Published
Schmitt-Grohe, S. & M. Uribe (2012/16)

Fiscal Rules in Response to the Crisis - Toward the "Next-Generation" Rules
Schaechter, A., T. Kinda, N. Budina & A. Weber (2012)

Why aren't developed countries saving?   ScienceDirect Required
Dobrescu, L.I., L.J. Kotlikoff & A. Motta (2012)

The Dynamic Effects of Fiscal Stimulus in a Two Sector Open Economy   Acrobat Required
Guest, R. & A.J. Makin (2012)

Declining Labor Shares and the Global Rise of Corporate Savings
Karabarbounis, L. & B. Neiman (2012)

Is Monetary Policy in an Open Economy Fundamentally Different?
Monacelli, T. (2012)

A DSGE model for a SOE with systematic interest and foreign exchange policy in which policymakers exploit the risk premium for stabilization purposes
Escudé, G.J. (2012)

Thousands of models, one story: Current account imbalances in the global economy   ScienceDirect Required
Ca' Zorzi, M., A. Chudik & A. Dieppe (2012)

The banking and distribution sectors in a small open economy DSGE Model
Deák, S., L. Fontagné, M. Maffezzoli & M. Marcellino (2012)

Unemployment and debt dynamics in a highly indebted small open economy   ScienceDirect Required
Heer, B. & S.F. Schubert (2012)

Financial Intermediation, Exchange Rates, and Unconventional Policy in an Open Economy
Cespedes, L.F., R. Chang & A. Velasco (2012)

Local versus Producer Currency Pricing: Evidence from Disaggregated Data   Wiley Interscience Required
Antoniades, A. (2012)

Monetary Rules and Sectoral Unemployment in Open Economies   Acrobat Required
Craighead, W.D. (2012)

Credit Constraints and Growth in a Global Economy | Published
Coeurdacier, N., S. Guibaud & K. Jin (2012/15)

Financial Intermediation, Exchange Rates, and Unconventional Policy in an Open Economy
Céspedes, L.F., R. Chang & A. Velasco (2012)

Is openness inflationary? Policy commitment and imperfect competition   ScienceDirect Required
Evans, R.W. (2012)

Creative Destruction and Unemployment in an Open Economy Model   Acrobat Required
Stepanok, I. (2012)

Exchange rate regimes and fiscal multipliers   ScienceDirect Required
Born, B., F. Juessen & G.J. Müller (2012)

Fiscal policy, banks and the financial crisis   ScienceDirect Required
Kollmann, R., M. Ratto, W. Roeger & J. in't Veld (2012)

Monetary Rules for Commodity Traders
Catao, L. & R. Chang (2012)

International Monetary Coordination and the Great Deviation
Taylor, J.B. (2013)

A wavelet analysis of international risk-sharing   ScienceDirect Required
Trezzi, R. (2013)

A Model of the Safe Asset Mechanism (SAM): Safety Traps and Economic Policy
Caballero, R.J. & E. Farhi (2013)

Equilibrium stability in open economy models   ScienceDirect Required
Bodenstein, M. (2013)

Financial sector ups and downs and the real sector in the open economy: Up by the stairs, down by the parachute   ScienceDirect Required
Aizenman, J., B. Pinto & V. Sushko (2013)

The fiscal multiplier and spillover in a global liquidity trap   ScienceDirect Required
Fujiwara, I. & K. Ueda (2013)

Exports and real exchange rates in a small open economy
Brunini, A., G. Mordecki & L. Ramírez (2013)

Fiscal Policy in a Small Open Economy with Oil Sector and non-Ricardian Agents   Acrobat Required
González, A., M.R. López Piñeros, N. Rodríguez & S. Téllez (2013)

Destabilization Effect of International Trade in a Perfect Foresight Dynamic General Equilibrium Model   Acrobat Required
Nishimura, K., A. Venditti & M. Yano (2013)

Time Consistency of Optimal Monetary and Fiscal Policy in a Small Open Economy   ScienceDirect Required
Liu, X. (2013)

The Impact of Uncertainty Shocks in Emerging Economies