This study examines a number of brief models that demonstrate potential disadvantages in the process of globalization of capital movements. Using Israeli data, we examine the extent to which Israel suffers from these disadvantages. One disadvantage is related to the transfer of negative shocks...

Why different national governments have different policies regarding globalization? This is an important research topic of government and economics. In the paper, I analyze how different income groups have different attitudes towards globalization; and how such attitudes shape government policy....

The note analyzes how globalization forces induce monetary authorities, guided in their policies by the welfare criterion of a representative household, to put greater emphasis on reducing the inflation rate than on narrowing the output gaps