Economic theory suggests circumstances in which a rise in short term real interest rates can increase consumption, contrary to much conventional wisdom. This paper suggests that these circumstances are more likely to be prevalent in Japan and finds strong empirical evidence for a positive...

International trade is a principle transmission mechanism by which developments in one country can have repercussions in others and how it is modelled is an important part of any multi-country model. This paper describes recent estimation work carried out by the OECD, which respecifies and...