This paper adds to the empirical literature on business cycle properties across exchange rate regimes. Earlier research examined the consequences of the Bretton Woods system on international stylized facts. However, the conclusions might be biased by the oil shocks at the beginning of the...

Empirical evidence suggest that nominal shocks play a major role in explaining real exchange rate fluctuations. I thus develop a two-country monopolistic competition model with nominal impulses, adjustement costs and price discrimination. I gauge the ability of the model to solve the quantity...

We present a version of the APT based on an asset index set of an arbitrary infinite cardinality. Under assumptions due to Ross and Chamberlain-Rothschild, we shhow that in the absence of gains from asymptotic arbitrage, the square of the deviations of the individual rates of return from a...

In frictionless securities markets, the characterization of the no arbitrage condition by the existence of equivalent martingale measures in discrete time is known as the fundamental Theorem of Asset Pricing. In the presence of convex constraints on the trading strategies, we extend this theorem...