This paper adds a new perspective to the literature of monetary standard by establishing a link between re-exports and the choice of nominal anchor. The model developed is applied to address the controversy over the US dollar versus the renminbi as the nominal anchor for Hong Kong, in the...

This paper examines the impact of demographic factors on saving, investment, and external balances. We derive a number of semi-structural equations from national accounting principle and the principle that external balances for the world as a whole must sum to zero. The resulting equations...

The recent literature on preferential trade agreements (PTAs) emphasizes the distinction between the extensive and intensive margins. What has been missing is the distinction between tariff and non-tariff changes under PTAs. Tariff reduction is a quintessential feature of PTAs. But member...