A famous dictum in open economy macroeconomics -- which obtains in the Mundell-Fleming world of sticky prices and perfect capital mobility -- holds that the choice of the optimal exchange rate regime should depend on the type of shock hitting the economy. If shocks are predominantly real, a...

This paper revisits the issue of the optimal exchange rate regime in a flexible price environment. The key innovation is that we analyze this question in the context of environments where only a fraction of agents participate in asset market transactions (i.e., asset markets are segmented)....

This paper studies optimal monetary policy in a small open economy under flexible prices. The paper's key innovation is to analyze this question in the context of environments where only a fraction of agents participate in asset market transactions (i.e., asset markets are segmented).  In this...

No abstract available.

This Appendix is supplemntary to "Fisheries Management with Stock Growth Uncertainty and Costly Capital Adjustment".

We investigate the role of broadband access on the probability of telecommuting and whether individuals who work from home receive greater compensation. We also assess whether telecommuting differs between more- and less-densely populated areas. Telecommuting responds positively to local average...

This is an Appendix to "The Optimal Choice of Monetary Policy Instruments in a Small Open Economy" Forthcoming in the Canadian Journal of Economics.

Recent emerging market crises have been characterized by two key features: (i) banking crises generally precede currency crises, and (ii) asset prices decline in advance of currency crises. This paper argues that asset prices provide a key link between banking and currency crises. It is shown...

Across nine transition economies, it is the young, educated, English-speaking workers with the best access to local telecommunications infrastructures that work with computers. These workers earn about 25% more than do workers of comparable observable skills who do not use computers. Controlling...

This paper compares the welfare under two standard alternative exchange rate regimes, fixed and flexible, in a stochastic dynamic general equilibrium two-country setting. Conventional wisdom holds that countries often prefer low exchange-rate variability to stabilize trade. This may explain the...