Several studies have commented on the emergence of a new international monetary system in the post-Asian crisis years. The current international financial crisis has, however, put Bretton Woods II under considerable strain. This paper analyzes the sustainability of the precrisis order from an...

I provide a framework for understanding debt deleveraging in a group of _nancially integrated countries. During an episode of international deleveraging world consumption demand is depressed and the world interest rate is low, reecting a high propensity to save. If exchange rates are allowed to...

This paper asks if bonanzas (i.e. surges) in net capital flows are associated with a higher likelihood of banking crises and whether this association is necessarily through a lending boom mechanism. Using a new database covering over one hundred countries during 1973-2008, the paper shows that...

Most of the emerging European countries, including Republic of Macedonia, are faced with greater or smaller current account deficits, which raise the concern about their sustainability in the long run. This working paper examines the sustainability of the Macedonian current account deficit using...

We develop an ecological open-economy SFC model that enables testing cross-area interactions among productive sectors, financial markets and the ecosystem. We show that the unequal technical progress across areas, coupled with rising ecological awareness, can force governments of less...

We use the geometric representation of factor models to represent the factor loading structure by sets corresponding to unit-specific non-zero loadings. We formulate global and local identification conditions based on set conditions. We propose two algorithms to efficiently evaluate Sato...

We use the geometric representation of factor models to represent the factor loading structure by sets corresponding to unit-specific non-zero loadings. We formulate global and local, rotational identification conditions based on set conditions. We propose two algorithms to efficiently evaluate...

In this paper we study the intra-euro area imbalances based on a dynamic general equilibrium model. We show that European financial integration and the introduction of the euro might have contributed to the development of imbalances. Interest rate convergence following EMU accession led to net...