Economists have been interested in the degree of international capital mobility for a variety of reasons. E.g., the extent to which public deficits crowd out domestic investments depends on the ease with which domestic firms may access the international capital market. The welfare reduction due...

This paper discusses the difference between Fisherian and Ricardian trade in terms of a simple two-period model of a small open economy. Fisherian or intertemporal trade occurs when goods are traded today against the promise to deliver goods in the future. The resulting net resource transfer is...