change leads simultaneously to both higher growth and more trade.

GDP per hour (rather than GDP per capita) better measures labor productivity.

We develop a model in which innovations in an economy's growth potential are an important driving force of the business cycle. The frame- work shares the emphasis of the recent “new shock” literature on revisions of beliefs about the future as a source of fluctuations, but differs by tieing...

I develop a multicountry-model in which economic growth is driven mainly by domestic innovation and the adoption of foreign technologies embodied in traded intermediate goods. Fitting the model to data on innovation, output per capita, and trade in varieties for the period 1996-2007, I estimate...

Countries with weaker economic fundamentals experienced higher currency volatility and capital flows.

Fear of demand-driven deflation calls for expansionary economic policies.