This paper identifies two theoretical mechanisms that relate the regulatory arbitrage behavior of internationally active banks (IABs) to global financial conditions. According to the first mechanism, regulation becomes more binding during adverse financial conditions. Under these conditions,...

This paper demonstrates the countercyclicality of income inequality. Inferences are drawn from a unique model that combines a new Keynesian framework with an endogenous growth mechanism that features a labor-augmenting technology. The income disparity is between high-skill workers who service...

This paper estimates a 3-country DSGE model to identify the drivers of exchange rate volatility in small open economies (SOE). The model features common shocks that affect economies symmetrically. Using data from Jamaica, the US and the G-7 region, the paper finds that external financial shocks...

This paper estimates a 3-country DSGE model to identify the drivers of exchange rate volatility in small open economies (SOE). In addition to the usual cross-country linkages through trade and asset holdings, the model features common shocks that affect economies symmetrically. Using data from...

This paper infers the degree of economic integration amongst G-7 countries by estimating a two country DSGE model separately for each country in the group. In doing so, the two economies in the model are represented by the observations for a specific country and the corresponding values for the...

We evaluate, both empirically and theoretically, the spillover effects that debt-financed fiscal policy interventions of the United States have on other economies. We first consider a two-country dynamic stochastic general equilibrium model with international portfolio rebalancing effects...