This working paper was written by Dudley Cooke (Trinity College Dublin).I develop a two country general equilibrium model with heterogeneous price-setting firms to understand how shocks to monetary policy and aggregate labor productivity impact trade integration, which I capture through the...

This working paper was written by Juan Carlos Martinez Oliva (Bank of Italy).In view of the debate on exchange rate stabilization in Asia, this paper introduces a new and original approach to the determination of equilibrium real exchange rates (ERER) across ASEAN+3. Existing literature usually...

This working paper was written by Dudley Cooke (Trinity College Dublin and Hong Kong Institute for Monetary Research).I develop a two country general equilibrium model with heterogeneous price-setting firms to understand how shocks to monetary policy and aggregate labor productivity impact trade...

This working paper was written by Michael B. Devereux (Centre for Economic Policy Research, University of British Columbia and Hong Kong Institute for Monetary Research) and Alan Sutherland (Centre for Economic Policy Research and University of St Andrews).Open economy macroeconomics typically...

This working paper was written by Yin-wong Cheung (University of California, Santa Cruz) and Kon S. Lai (California State University, Los Angeles).This study investigates whether greater nominal exchange rate flexibility aids real exchange rate adjustment based on data from dual exchange rates...

This working paper was written by Kang Shi (The Chinese University of Hong Kong) and Juanyi Xu (Hong Kong University of Science and Technology, and Simon Fraser University).This paper develops a small open economy model with sticky prices to show why a flexible exchange rate policy is not...

This working paper is written by Cho-Hoi Hui (Hong Kong Monetary Authority), Paul Luk (Hong Kong Institute for Monetary and Financial Research), Giorgio Valente (Hong Kong Institute for Monetary and Financial Research) and Gabriel Wu (Hong Kong Monetary Authority).We study the joint...

This working paper is written by Emre Ozdenoren (London Business School), Kathy Yuan (London School of Economics) and Shengxing Zhang (London School of Economics).Borrowers obtain liquidity by issuing securities backed by current period payoff and resale price of a long-lived collateral asset....

This working paper is written by Pasquale Della Corte (Imperial College London) and Aleksejs Krecetovs (Imperial College London).We empirically study the relationship between currency excess returns and current account uncertainty, measured as forecast dispersion. We find that investment...

This working paper is written by J. Scott Davis (Federal Reserve Bank of Dallas), Michael B. Devereux (University of British Columbia) and Changhua Yu (Peking University).We model sudden stops in a small open economy as rare discrete events precipitated by increases in the world risk-free rate....