We examine how medium-term movements in real exchange rates and GDP vary with international financial conditions. For this purpose, we study the international transmission of productivity shocks across a variety of IRBC models that incorporate different assumptions about the persistence of...

We document in US data that returns to wealth across households are significantly heterogeneous, and persistently so. Motivated by this observation, we build a tractable general equilibrium model where households face persistent idiosyncratic returns to study the US wealth distribution. We show...

This paper quantifies the effects of China’s trade reforms on the current account in its post-WTO period since 2001. We first present cross-country evidence to show that the adjustment of the current account to WTO access in China differs from those in other countries, exhibiting a hump-shaped...