"We use a forty-two country model of production and trade to assess the implications of eliminating current account imbalances for relative wages, relative GDP's, real wages, and real absorption. How much relative GDP's need to change depends on flexibility of two forms: factor mobility and the...

Argentina experienced a decline in the early years of the 2000s, from 2000 to 2002, in GDP and in most labour market indicators, followed by improvements in nearly all of them, tracing out a U-shaped pattern. The international crisis of 2008 impacted negatively only on the unemployment rate and...