Standard new trade models depict producers as heterogeneous in total factor productivity. In this paper, I adapt the Eaton and Kortum (2002) model of international trade to incorporate tradable intermediate goods and producer heterogeneity in value-added productivity. In equilibrium, this yields...

Acknowledgements -- Introduction -- National economies compared -- Participants and incentives -- Central banks, interest rates and money -- Domestic policies and global repercussions -- Global trade and trends -- International payments and exchange -- Investor decisions, moving economies --...