This paper estimates empirically the changing degree of capital mobility in several Pacific Basin countries that have pursued financial liberalization in recent years. Tracing the impact of the liberalization process on the capital account, the paper also examines the implications for monetary...

Trade liberalization leads to long-run gains, but it can also involve costly short-run macroeconomic adjustment. The paper explores the relative importance of these effects within a dynamic general equilibrium model that captures key elements of both international trade and macroeconomic models....

This paper examines the long-run determinants of the real exchange rate from a stock-flow perspective. The empirical analysis estimates a long-run relationship between the real exchange rate, net foreign assets, and other factors affecting trade flows. Using postwar data for the United States...

This paper investigates the consequences of pricing to market for exchange rate pass-through and real exchange rate dynamics across different patterns of trade. Under two-way, intraindustry trade – where home prices display greater linkage with those of foreign competitors – domestic and...

Evans (1991) has demonstrated that Blanchard's (1985) finite-horizon model obeys approximate Ricardian equivalence. This paper shows that this result is determined largely by an unrealistic assumption that labor income grows monotonically over the consumer's entire lifetime. With more realistic...

The changing degree of capital mobility in several Pacific Basin countries that have pursued financial liberalization is estimated empirically. Tracing the impact of the liberalization process on the capital account, the paper also examines the implications for monetary policy operating in this...

It has long been argued that the presence of nominal rigidities could cause adverse macroeconomic adjustment to trade liberalization and thus reduce the benefits of freer trade. The paper explores the welfare cost of macroeconomic adjustment within the framework of new open economy macroeconomic...

In the wake of the financial crisis, G-20 leaders launched a framework to mutually assess their policies to help strengthen the global economy. This article reflects on the experience so far with the Mutual Assessment Process (MAP). It looks at the coordination problem facing G-20 economies with...

Accommodative monetary policies in advanced economies have spurred increased capital inflows into emerging markets since the global financial crisis. Starting in May 2013, when the Federal Reserve publicly discussed its plans for tapering unconventional monetary policies, these emerging markets...