Topic 1: Global Financial Imbalances and Intertemporal
Models of the Current Account
Matthias (2013) “What drives China’s Current Account?” Journal of
International Money and Finance 32, 856-883.
- “Why Germany’s
current-account surplus is bad for the world economy,” The
Economist, July 8, 2017.
- Sheffrin, Steven, and Wing-Thye
Woo (1990) “Present Value Tests of an Intertemporal Model of the
Current Account” Journal of International Economics 29, 237-253.
Paul R. and Steven Sheffrin (2000)
“Interest Rates, Exchange Rates and Present Value Models of the Current
Account,” The Economc
Journal 110 (April), 535-558.
Campa, A Gavilan, 2011.
Current accounts in the euro area: An intertemporal approach
Journal of International Money and Finance 30, 205-228.
Charles and John Rogers (2006) "The U.S. Current Account
Deficit and the Expected Share of World Output," Journal of
Monetary Economics53, 1063-1093.
- Corsetti, Giancarlo and Panagiotis T. Konstantinou (2012) “What Drives US Foreign
Borrowing? Evidence on the External Adjustment to Transitory and
Permanent Shocks,” American Economic Review 102, 1062-1092.
Maurice. (2012) “Does the Current Account Still Matter?” American
Economic Review 102, 1-23.
Martin, and Charles Horioka (1980)
“Domestic Savings and International Capital Flows,” The Economic Journal
90 (358) June, 314-329.
Reuven and Kenneth Rogoff (1995) “Global Versus Country-Specific
Productivity Shocks and the Current Account,” Journal of Monetary
Economics, 35 (1) February, 159-192.
2: International Comovement
- Backus, David K.,
Patrick J. Kehoe and Finn E. Kydland (1992)
“International Real Business Cycles, “ Journal
of Political Economy, 100 (4) August, 745-775.
Engel and Jian Wang (2011) International Trade in Durable Goods:
Understanding Volatility, Cyclicality, and Elasticities, Journal of
International Economics 83, 37-52.
D. K., and G. W. Smith (1993): “Consumption and Real Exchange Rates
in DynamicEconomies with Non-Traded Goods,”
Journal of International Economics, 35(3), 297–316.
- Corsetti, Giancarlo, Luca Dedola
and Sylvain Leduc (2008) “International Risk Sharing and the
Transmission of Productivity Shocks,” Review of Economics Studies 74,
Wataru and Nguyen, Thuy Lan,
(2017) Understanding the cross country effects of U.S. technology shocks, R&R at the Journal of International
M., and K. Rogoff (2001): “The Six Major Puzzles in International
Macroeconomics: Is There a Common Cause?,” in
NBER Macroeconomics Annual 2000, Volume 15, pp. 339–390. MIT press.
- Eaton, J., S. Kortum, B. Neiman, and J. Romalis
(2016): “Trade and the Global Recession,” forthcoming American
J., S. Kortum, and B. Neiman, (2016):
“Obstfeld and Rogoff's International Macro Puzzles: A Quantitative
Assessment,” Working Paper.
3: International Risk Sharing
Heathcote and Fabrizio Perri
(2013).”The International Diversification Puzzle Is Not as Bad as
You Think," Journal of Political Economy 121, 1108-1159.
Robert E., Jr. 1982. “Interest Rates and Currency Prices in a Two-Country
World.” Journal of Monetary Economics 10, 335–59.
Harold L., and Maurice Obstfeld. 1991. “Commodity Trade and
International Risk Sharing: How Much Do Financial Markets Matter?”
Journal of Monetary Economics 28, 3–24.
Kollmann, Robert, and Martin, Philippe, 2010.
"International portfolios, capital accumulation and foreign assets
dynamics," Journal of International Economics, Elsevier 8, 100-112.
4: Exchange Rate Determination
- Berka, Martin, Michael B. Devereux and Charles Engel
(2015) “Real Exchange Rates and Sectoral Productivity in the
Eurozone,” working paper.
M. Taylor & Mark P. Taylor (2004). "The Purchasing Power
Parity Debate," Journal of Economic Perspectives, American Economic
Association, vol. 18(4), pages 135-158, Fall.
- Imbs, Jean, H. Mumtaz,
Morten Ravn and Helene Rey (2005) “PPP Strikes
Back: Aggregation and the Real Exchange Rate,” Quarterly Journal of
Economics 120, 1-43.
- Carvalho, Carlos and Fernanda Nechio
(2012), “Aggregation and the PPP Puzzle in a Sticky Price Model,”
American Economic Review 101, 2391–2424.
Paul, Reuven Glick, and Jyh-lin Wu,(2014) “Mussa Redux
and Conditional PPP,” Journal of Monetary Economics 68, 101-114.
Richard and Kenneth Rogoff (1983) "Empirical Exchange Rate
Models of the Seventies: Do they fit out of sample?" Journal of
International Economics 14, 3-24.
- Engel, Charles
and Kenneth West (2005). "Exchange Rates and
Fundamentals," Journal of Political Economy 113, June 2005,
- Engel, Charles, Kenneth West,
and Nelson C. Mark (2008) "Exchange Rate Models are Not as Bad
as You Think," NBER Macroeconomics Annual, 381-441.
B. (1964), "The Purchasing Power Parity Doctrine: A
Reappraisal", Journal of Political Economy, 72 (6): 584–596.
5: Monetary Policy in the Open Economy
- Lahiri, Amartya and Alok Johri (2008) “Persistent real Exchange Rates,” Journal of
International Economics 76, 223-236.
- Obstfeld, Maurice
and Kenneth Rogoff, (1995) “Exchange Rate Dynamics Redux,” Journal
of Political Economy, 103 (3) June, 624-660.
- Kollmann, Robert (2001) “The Exchange Rate in a
Dynamic-Optimizing Current Account Model with Nominal Rigidities: A
Quantitative Investigation," Journal of International Economics 55,
- Chari, V.V.,
Patrick J. Kehoe, and Ellen R. McGrattan
(2003) “Can Sticky Price Models Generate Volatile and Persistent
Real Exchange Rates?” Review of Economic Studies 69, 533-563.
6: Financial Integration and Interest Rate Parity
- Engel, Charles
(2014) “Exchange Rates and Interest Parity.” In Handbook of
International Economics, Vol. 4, edited by Gita Gopinath
and Elhanan Helpman, 453–522. Amsterdam:
North-Holland. Available here as NBER Working Paper No. 19336.
- Eichenbaum, Martin, and Charles L. Evans (1995)
“Some Empirical Evidence on the Effects of Shocks to Monetary Policy on
Exchange Rates,” Quarterly Journal of Economics, 110 (4) November,
Engel, (2016) "Exchange Rates, Interest Rates, and the Risk
Premium," American Economic Review 106, 436-74.
- Benigno, Gianluca; Pierpaolo Benigno; and,
Salvatore Nisticò (2012) “Risk, Monetary
Policy and The Exchange Rate.” NBER
Macroeconomics Annual 2011, 247-309.
- Wenxin Du, Alexander Tepper,
Adrien Verdelhan (2016). “Deviations from Covered Interest Rate
Parity,” MIT Working
7: Optimal Monetary Policy and International Coordination
- Devereux, Michael
B. and Charles Engel (2003) Devereux, Michael B. and Charles Engel,
2003, “Monetary Policy in the Open Economy Revisited: Price Setting and
Exchange Rate Flexibility,” Review of Economic Studies 70, 765-783.
G., L. Dedola, And S. Leduc (2010) Optimal
Monetary Policy in Open Economies,
Handbook of Monetary
Economics, vol III, ed
by B. Friedman and M. Woodford, 861-933.
Maurice and Kenneth Rogoff (2002) “Global Implications of
Self-Oriented National Monetary Rules.” The Quarterly Journal of
Economics 117, 503-535. (On webpage as mimeo)
- Bergin, Paul
and Giancarlo Corsetti (2013)
“International Competitiveness and Monetary Policy: Strategic Policy and
Coordination with a Production Relocation Externality,” NBER Working
Paper No. 19356.
Charles (2012) “Currency Misalignments and Optimal Monetary Policy:
A Reexamination,” American
Economic Review 101, 2796-2822.
- Clarida, R., J. Gali and
M. Gertler (2002) “A simple Framework for
International Monetary Policy Analysis,” Journal of Monetary Economics
Charles (2015) “International Coordination of Central Bank Policy,”
NBER Working paper 20952.
8: Financial Frictions and Shocks
- Perri, Fabrizio and
Vincenzo Quadrini (2016)
"International Recessions," working paper, and NBER Working
- Gourinchas, P.O. and Helene Rey, 2014. External adjustment,
global imbalances and valuation effects in Handbook of International
Economics volume 4.
- Gourinches, Pierre-Olivier and Helene Rey (2007)
“International Financial Adjustment,” Journal of Political Economy
- Tille, Cedric (2008) “Financial Integration and
the Wealth Effect of Exchange Rate Fluctuations,” Journal of
International Economics 75, 283-294.
- Benetrix, Agustin S, Philip R. Lane, Jay C. Shambaugh, (2015) “International Currency
Exposures, Valuation Effects, and the Global Financial Crisis,” NBER
Working Paper 20820.
Michael and James Yetman, 2010,
"Leverage Constraints and the International Transmission of
Shocks," Journal of Money, Credit and Banking 42 71-105.
- Devereux, Michael
and James Yetman (2014) “Capital Controls,
Global Liquidity Traps and the International Policy Trilemma,” NBER
Working Paper No. 19091