, investment in capital goods and a non-traded good. Such an environment is rich enough to explain several phenomena that are … inexplicable in more barren models. We suggest an explanation of why saving and investment may be correlated even with no … restrictions on trade in assets. We explain why a high saving country may nonetheless borrow from abroad to finance investment. We …

We investigate the effects of higher tariffs on the current account.Tariffs may increase or decrease investment … depending on the capital intensity of the sector protected. We find that ther esponse of saving to tariffs issensitive to the … modelling of saving behavior. In a model in which Consumers' discount rate varies endogenously (in the Uzawa preference form …

The paper explores how a tariff may affect saving through intergenerational redistribution of income that is caused by …

of the deficit have been offered, and to varying degrees we believe that all may have played a role: low private saving … prominently: private saving in the US is low because income growth is expected to be strong. We rework the standard neoclassical …

. Whether the country lends or borrows immediately depends upon whether the consumption goods sector is capital or labor … country produces tradable capital and a nontradable consumption good and borrows or lends capital to achieve higher levels of … welfare. A shift in time-preference favoring future over current consumption has an ambiguous impact effect on foreign debt …

On a Friday that the Fed announces a money supply greater than had been anticipated, interest rates move up in response … interest rates today. A second explanation is that the market perceives the increase in the money supply as signalling a higher … significant tendency for the dollar to appreciate following positive money supply surprises.This supports the first explanation …