This lecture presents a broad overview of postwar analytical thinking on international macroeconomics, culminating in a more detailed discussion of very recent progress. Along the way, it reviews important empirical evidence that has inspired alternative modeling approaches, as well as...

The organization of this paper is as follows. Section I builds an empirically implementable model of the current account. Likewise, Section II derives the essential time series properties of the real exchange rate. Positive implications of the intertemporal approach against panel and...

This paper examines the effects of restrictions on international financial markets. We analyze a general equilibrium, rational expectations model of a two-country world in which well-functioning international financial markets premit trade in all state-contingent securities except insofar as...

We analyze a two-country economy with complete markets, featuring two national currencies as well as a global (crypto)currency. If the global currency is used in both countries, the national nominal interest rates must be equal and the exchange rate between the national currencies is a...

When thinking about how the gold standard worked, economists tend to focus on issues of price level determination and the self-correcting role of gold production.1 Less attention is usually given to the international adjustment mechanism. However, the international adjustment mechanism is...

The canonical predictions of intertemporal open-economy macro models are tested by a structural VAR analysis of Group of Seven countries. The analysis is distinguished from the previous literature in that it adopts minimal assumptions for identification. Consistent with a large set of...

The problem is to evaluate the likelihood that a country will face a currency or balance of payments crisis over a given horizon. When is it rational for market participants to expect a depreciation of the currency? On the basis of considerable empirical studies we know that in both banking and...

This paper analyzes inevitable transitions between fixed and floating exchange-rate regimes in a balance-of-payments model where individual preferences are explicitly specified. The goal is to assessthe analogy between speculative attacks in foreign exchange markets and attacks on official...

This paper reviews recent developments in the theoretical and empirical analysis of balance-of-payments crises. A simple analytical model highlighting the process leading to such crises is first developed. The basic framework is then extended to deal with a variety of issues, such as:...

The purpose of this paper is to describe the behavior of that subset of prices and price indexes that is relevant to the theory of balance of payments adjustment. The theoretical writings on the balance of payments may be viewed at this juncture as falling into two main groups -- the "standard"...

"International Finance is an established and internationally renowned introduction to the subject. It draws on recent events to provide comprehensive coverage of traditional theories and new research relating to the balance of payments, exchange rate determination and the international monetary...

This paper finds that limited exchange rate flexibility in the form of "fear of appreciation" significantly slows adjustment of current account imbalances, providing novel support for Friedman's conjecture regarding exchange-rate flexibility. We present a new stylized fact: floaters have faster...

The gold standard emerged as the international monetary system by the end of the 19th century. We formally study its properties in a micro-founded model and find that the scarcity of the world gold stock not only results in a suboptimal output of goods that are purchased with money but also...

We analyze a two-country economy with complete markets, featuring two national currencies as well as a global (crypto)currency. If the global currency is used in both countries, the national nominal interest rates must be equal and the exchange rate between the national currencies is a risk-...

We analyze a two-country economy with complete markets, featuring two national currencies as well as a global (crypto)currency. If the global currency is used in both countries, the national nominal interest rates must be equal and the exchange rate between the national currencies is a risk-...

We analyze a two-country economy with complete markets, featuring two national currencies as well as a global (crypto)currency. If the global currency is used in both countries, the national nominal interest rates must be equal and the exchange rate between the national currencies is a...

A handful of currencies, especially the US dollar, play a dominant role in international trade. We survey the active theoretical and empirical literature that documents patterns of currency use in global trade, the implications of dominant currencies for international transmission of shocks,...

Most trade is invoiced in very few currencies. Despite this, the Mundell-Fleming benchmark and its variants focus on pricing in the producer's currency or in local currency. We model instead a 'dominant currency paradigm' for small open economies characterized by three features: pricing in a...

Mit der Finanzkrise ist die Bedeutung der Finanzmärkte und des Bankensystems in den wissenschaftlichen Fokus gerückt. In dem Lehrbuch zeigen die Autoren jüngste Entwicklungen auf und analysieren diese aus institutionenökonomischer Perspektive, während sie die Rolle der Europäischen...

Funktionen des Finanzsektors -- Finanzsystem und Finanzierung -- Zentralbanken und Europäische Zentralbank -- Geldschöpfung im Finanzsektor -- Motive der Geldhaltung und makroökonomisches Grundmodell I -- Theorie der Zinsen -- Zinsstrukturtheorie -- Theorie der Banken -- Kreditrationierung:...

Foreign Exchange Markets and Foreign Exchange Rates -- Exchange Rate Regimes and International Monetary Systems -- International Parity Conditions -- Balance of Payments and International Investment Positions -- Open Economy Macroeconomics -- Balance of Payments Issues and Exchange Rate...

Most trade is invoiced in very few currencies. Despite this, the Mundell-Fleming benchmark and its variants focus on pricing in the producer's currency or in local currency. We model instead a 'dominant currency paradigm' for small open economies characterized by three features: pricing in a...

Empirical econometric evidence shows that Mexico's simulated output recovery after a negative external shock was faster (a third as long) when the country's policymakers let the nominal foreign exchange rate float than when they fixed it, and much faster than in other developing countries that...

Most trade is invoiced in very few currencies. Yet, standard models assume prices are set in either the producer's or destination's currency. We present instead a ‘dominant currency paradigm' with three key features: pricing in a dominant currency, pricing complementarities, and imported input...

Dieses essential stellt in kompakter Form die Zusammenhänge von Export, Import, Investitionen und Kapitalverkehr vor und fragt nach dem optimalen Währungsraum. Die Wirtschaftswissenschaften haben Ansätze entwickelt, die einem Land bei der Festlegung der Rahmenbedingungen und bei der Wahl der...

The emergence of international current account imbalances has dominated the economic debate for several years and has been considered one of the main reasons for the turbulences in the world economy since 2007. Economic theory suggests that an economy cannot run persistent current account...

Foreign trade -- Income and price effects in foreign trade / by Morris Goldstein and Mohsin S. Khan -- The supply and demand for exports : a simultaneous approach / by Morris Goldstein and Mohsin S. Khan -- Prices of tradable and nontradable goods in the demand for imports / by Morris Goldstein,...

The response of exchange rates to permanent and transitory shocks under floating exchange rates / Martin D. D. Evans and James R. Lothian -- Trends in excess returns in currency and bond markets / Martin D. D. Evans and Karen K. Lewis -- Do long-term swings in the dollar affect estimates of the...

This article attempts to resolve what Jacob Viner in his classic Studies in the Theory of International Trade and D. P. O'Brien in his The Classical Economists refer to as a major mystery in the history of economic thought

We examine whether the cross-country incidence and severity of the 2008-2009 global recession is systematically related to pre-crisis macroeconomic and financial factors. We find that the pre-crisis level of development, increases in the ratio of private credit to GDP, current account deficits,...