Alessandria, George; Kaboski, Joseph; Midrigan, Virgiliu - In: Journal of Monetary Economics 60 (2013) 1, pp. 1-20
importers to change their inventory holdings. We find that a two-country model of international business cycles with an … alters the international transmission of business cycles. Specifically, real net exports become countercyclical and … trade wedges substantially overstates the role of trade wedges in business cycle fluctuations. …