In this paper, the following question is posed: Can the New Keynesian Open Economy Model by Galí and Monacelli 2005b) explain "Six Major Puzzles in International Macroeconomics", as documented in Obstfeld and Rogoff (2000b)? The model features a small open economy with complete markets, Calvo...

One of the major cost factors in car manufacturing is the painting of bodyand other parts such as wing or bonnet. Surprisingly, the painting may beeven more expensive than the body itself. From this point of view it is clearthat car manufacturers need to observe the painting process carefully to...