This paper examines the effects of fiscal policies in an open economy when international financial markets are well developed. Consumers use these markets to hedge against the risk of uncertain future changes in government policies. These portfolio allocations alter the effects of changes in...

This paper examines the relationship between inflation, exchange rates, and the pattern of international trade and payments in a small economy with utility-maximizing agents and a transactions demand for money. Fully anticipated inflation has real effects in the model through its role as a tax...

This paper explores the main channels of international transmission of economic disturbances under the Bretton Woods System and presents evidence on the short-run international transmission of inflation under that system. There appears to have been little short-run international transmission of...

This paper proposes a new explanation for the greater variability of real exchange rates under pegged than under floating nominal exchange rate systems. The explanation hinges on the propensity of governments to use international trade restrictions and financial restrictions for...

A class of real business cycle models suggests that shocks to technology can explain aggregate fluctuations in output and employment. This paper begins from the premise that shocks to productivity may vary across industries but are unlikely to vary systematically across national boundaries for a...

Thesis (Ph. D.)--University of Rochester. Dept. of Economics, 1982.

Do worries never cease? Now that the Federal Reserve has reduced the federal funds rate to a four-decade low, responding to economic weakness that continued longer than most economists predicted, a new villain has appeared. Sometimes identified as deflation, sometimes as a liquidity trap, the...

United States trade and current-account deficits have risen sharply in recent years. The current account deficit reached 4.27 percent of GDP in the second quarter of 2000, and will probably exceed that slightly in the third quarter. The U.S. trade deficit reached 4.06 percent of GDP in the...