Fogli, Alessandra; Perri, Fabrizio - In: Monetary and Economic Studies 24 (2006) S1, pp. 209-225
The early 1980s marked the onset of two striking features of the current world macroeconomy: the fall in U.S. business cycle volatility (the ggreat moderationh) and the large and persistent U.S. external imbalance. In this paper, we argue that an external imbalance is a natural consequence of...