"Data for OECD countries document: 1. imports and exports are about three times as volatile as GDP; 2. imports and exports are pro-cyclical, and positively correlated with each other; 3. net exports are counter-cyclical. Standard models fail to replicate the behavior of imports and exports,...

The 2007-2008 financial crisis highlighted that a turmoil in the financial sector including bursting asset price bubbles can cause pronounced and persistent fluctuations in real economic activity. This justifies the consideration of evolving and bursting asset price bubbles as another source of...

Will outsourcing be a winner or loser from the global crisis? This sector has been a major beneficiary of the boom in business services trade since the mid-1990s, coinciding with the rise of emerging market economies. This growth survived – indeed was arguably a beneficiary of – the last...