The behaviour of the exchange rate under a floating exchange rate regime for a small open economy with perfect capital mobility may appear like a managed float or even a firmer peg. We present a canonical new neo-classical synthesis open economy model where the central bank follows a strategy...

Over the past decades, cross-border financial flows have increased in importance and have in many occasions exceeded the underlying current account positions. This phenomenon has been accompanied by an increase in the volume of international equity transactions that accentuate the role of...

This paper considers the role of foreign investors in developed-country equity markets. It presents a quantitative model of trading that is built around two new assumptions: (i) both the foreign and domestic investor populations contain investors of different sophistication, and (ii) investor...

A central puzzle in international finance is that real exchange rates are volatile and, in stark contradiction to effcient risk-sharing, negatively correlated with cross-country consumption ratios. This paper shows that incomplete asset markets and a low price elasticity of tradables can account...

In this note we demonstrate that in affine models for bilateral exchange rates, the nature of return interdependence during crises depends on the tail properties of the fundamentals' distributions. We denote crisis linkages as either strong or weak, in the sense that the dependence remains or...

This brochure in the EU action on climate change series provides an overview of the many ways in which the EU is assisting developing countries in adapting to the negative effects of climate change and mitigating its causes, with a special focus on cooperation with developing countries in Asia.

The negative external effects of profit orientated businesses on the environment and society are most visible and destructive in developing countries, where compensation measures for adversely affected groups rarely exist and where high corruption rates often impede meaningful enforcement of...

The study investigates the contribution of selected important agricultural production systems and technologies (incl. rainwater harvesting, conservation agriculture, rice intensification system, organic farming, agroforestry systems and transgenic plants) to higher food production and food...