This paper makes a theoretical and an empirical contribution to the debate on what caused the "global imbalances". On the empirical side, I provide different types of evidence to support that housing demand shocks (shocks to the aggregate marginal rate of substitution between housing and...

This paper makes two contributions. On the theory side, I show that increases in the demand for housing may generate trade deficits without need for the standard ingredients used by others to model housing (wealth effects or trade in capital goods). Housing is a durable good that must be locally...

The Chinese state has integrated its economy into the neoliberal globalization of trade and investment without neoliberalizing its own financial markets, and to ensure stability, the state applies strict controls on interest rates, capital movement and the value of RMB. The Chinese state...

Most Western economists and policy makers agree that the Yuan is significantly undervalued and push the Chinese government for a large nominal revaluation of the Yuan. This paper, while surveying recent research on Chinese exchange rate policy, gives some new insights into this issue. Notably,...

Globalization and strengthening of integration processes have, among other things, also influenced some solutions relating to monetary sovereignty of particular countries. A great number of transition countries as well as some other underdeveloped countries are facing both inefficiency in their...

PhD dissertation, 1991, Economics Department, University of Chicago. (Thesis committee: Michael Woodford, advisor; José Scheinkman; John Huizinga.) Models of the international economy which assume complete asset markets predict that consumption co-moves closely in different countries as this...

The global financial crisis of 2007-09 triggered a sharp fall in output growth that was followed by a persistent slump in Europe and other advanced economies. Almost a decade after the outbreak of the global financial crisis, the recovery remains very weak in many major advanced economies. This...

The Global Crisis led to a sharp contraction and long-lasting slump in both Eurozone and US real activity, but the post-crisis adjustment in the Eurozone and the US shows striking differences. This column argues that financial shocks were key determinants of the 2008-09 Great Recession, for both...

Although the global financial and economic crisis hurt economies worldwide, the economies at the southern Mediterranean region have done relatively well to weather this global hurricane. Economic growth in the region has slowed down but the size of the trough of these economies' business cycle...

This paper considers industry policy and manufacturing in Australia by discussing the levels of tariffs and assistance by the Australian state. Australian policymakers have long been fascinated by the rise of East Asia and attempted to emulate a similar high-tech manufacturing industry via...