Die Hintergründe der theoretischen Debatte über Monetarismus Es ist allgemeine Überzeugung - wie dies von Benjamin Friedman 1978 mit Nachdruck erklärt wird -, daß es keine theoretische Debatte über Monetarismus gibt. Die Probleme, .die die Monetaristen und Keynesianer trennen, sind eher...

As support for traditional asset models of the foreign exchange market fades, there is growing interest in more general models that include flows from international trade and international investment. One advantage of flow models is that they fit naturally into the recent literature on...

What I call the modern theories of the law of one price and purchasing power parity extend those theories in two important ways: First by recognizing the nonlinearities caused by transaction costs and other impediments to trade and second by recognizing the importance of time in commodity...

Pippenger and Phillips (forthcoming) show how four common pitfalls cause cointegration tests to reject the law of one price when in fact it holds. They conclude that there is no reliable evidence that rejects the LOP. We consider a stronger test, half lives. The literature suggests that half...

The exchange rate literature contains two inconsistent strands. There is a large theoretical and empirical literature on overshooting. In that literature overshooting is an important explanation for exchange rate volatility. A separate literature says that exchange rates are martingales and that...

Three puzzles are closely related to the forward-bias puzzle and the failure of uncovered interest parity: (1) UIP failure is greater for short than long maturities, (2) forward bias is larger between developed than between developing countries and (3) there is no systematic forward bias in...