This article proposes and investigates the asymmetry hypothesis, which predicts that an international asymmetric shock tends to have a stronger and longer effect on the U.S. business cycle than a symmetric shock. The hypothesis finds empirical support in the impulse responses of U.S. output and...

This paper derives and estimates a current account model based on the absorption approach (which views the current account balance as the difference between domestic saving and investment). This approach provides a framework which allows drivers of cross-border financial flows and other...

This paper proposes and investigates the "asynchronization hypothesis," which predicts that an asynchronized shock tends to have a stronger and longer effect on the U.S. business cycle than an internationally synchronized shock. The hypothesis finds empirical support in the impulse responses of...