The paper reviews the channels of macroeconomic interdependence under flexible exchange rates. The model emphasizes the linkage of international capital markets, expectations, and nominal and real wage stickiness in affecting the impact of disturbances on employment, prices, and the exchange...

The model of U. S. merchandise imports presented in this paper is based on a framework which integrates the demand-oriented features of traditional foreign trade models with a theory of import price determination. The equations are estimated for total U. S. imports, as well as for various...

Following a decade of very modest expansion, external lending by U. S. banks registered a massive increase during the period 1972-75. The article attempts to explain this increase by focusing on U. S. bank claims on Japan, one of the most important borrowers of U. S. funds. Two salient...

This paper deals with liberalization and the evolution of output during the transition from plan to market. It explains why strong liberalization leads to a comparatively steep fall in output early in the transition, but a relatively strong recovery later on. Because it takes time to restructure...