The pioneering work of Meese and Rogoff (193) and, more recently, the work of Flood and Rose (1995) showed conclisively, that traditional Fundamentals of Exchange rate behavior offer little hope of explaining the international business cycle of the 1980s. In this paper we present a model which...

Brazilian Foreign Exchange (FX) markets have a unique structure: most trades are conducted in the derivatives (futures) market. We study price discovery in the FX markets in Brazil and indicate which market (spot or futures) adjusts more quickly to the arrival of new information. We find that...

We study the synchronization of credit booms and busts among 12 major European economies and the United States between 1972-2011. We propose a regression-based procedure to test whether boom-bust phases of credit cycles coincide across countries and to cluster countries with positively...