Topics will include (but are not limited to): -The transmission of real, financial and monetary shocks across countries in a globalized world. -The determination of international relative prices such as the real exchange rate and the terms of trade. -Optimal monetary and exchange rate policies...

The recent financial crisis has precipitated an outpouring of new research on the effects of financial frictions. However, most of the new work has been limited to a closed economy framework. Of the few that have studied financial frictions in an open economy setting, even fewer have...