This chapter focuses on specific problems posed by sovereign debt (that is, debt incurred by governments, typically those of developing countries) to foreign investors seeking a competitive return. Most recently sovereign debt has taken the form primarily of loans from commercial banks, although...

This chapter discusses the salient features of international trade and business cycles and summarizes the contributions of a particular branch of the literature on open economy macroeconomics. Becasue many macroeconomic time series are nonstationary, the computation of moments requires that the...

This chapter presents a critical survey and an interpretation of recent exchange rate research. It focuses on empirical results for exchange rates among major industrialized countries. The expectations of future exchange rate changes are a key determinant of asset demands, and therefore of the...

This chapter describes the basic structure of international trade agreements as they exist in practice, explores theoretically the normative consequences of actual and alternative trade agreements, and offers some theoretically-based explanation for the structure of trade agreements....

This chapter focuses on the international trade theory. It discusses the Ricardian and the RicardoViner models. These models point to technological differences as the source of international comparative advantage. A simple Ricardian model has one input, labor, which is assumed to be mobile...