This paper considers the implications for the United States, the United Kingdom and the rest of the world (ROW) of shocks that may contribute to a further reduction in global current account imbalances using a dynamic stochastic general equilibrium (DSGE) model. We consider a shock that...

The choice and structure of a country's exchange rate regime has wide implications for the effectiveness and flexibility of monetary policy tools, as well as for economic and financial stability. We examine 21 instances where exchange rate pegs have been abandoned in the past, to gauge the...

Data on cultural differences between countries based on the definitions developed by Geert Hofstede are now available for more than 80 countries. Data on six structural economic indicators published by the World Bank - ease of doing business, enforcement of contracts, control of corruption,...

The past two years have seen the worst post-war global recession on record, coupled with a dramatic dislocation in financial markets that is unprecedented. While governments around the world have stepped in to shore up their banking sectors, and central banks have cut interest rates to record...

Using a dynamic factor model, we uncover four main empirical regularities on international comovements in a long-run panel of real and nominal variables. First, the contribution of world comovements to domestic output growth has decreased over the post-WWII period. The contribution of regional...