This paper surveys recent research in open-economy macroeconomics, using questions raised by European economic and monetary unification to guide the topics discussed. A striking empirical regularity is the tendency for changes in the nominal exchange rate regime systematically to affect the...

I study positively and normatively the role of bank heterogeneity in the macroeconomy. I build an empirically-motivated macroeconomic model with a banking sector that features uninsurable idiosyncratic rate of return shocks, endogenous markups, costly default, and endogenous entry. The framework...

An otherwise conventional Keynesian macro model is modified to include inventories of final goods by (1) drawing a distinction between production and final sales, and (2) allowing for a negative effect of the level of inventories on production. Two models are presented: one in which the labor...

The Rebuilding Macroeconomic Theory Project, led by David Vines and Samuel Wills (2020), is an important, albeit long overdue, initiative to rethink a failing mainstream macroeconomics. Professors Vines and Wills, who must be congratulated for stepping up to the challenge of trying to make...

We propose a novel interpretation and formalization of Kahneman and Tversky's findings in the Linda experiment which implies that subjects are rational in the sense of Muth's hypothesis and provides an approach to specifying rational assessment of uncertainty in macroeconomic models....

The significance of the flow of workers’ remittances in the economies of developing countries during the last few decades or so cannot be ignored at the face changing global order where most of the economies in the world are transforming themselves to the call of globalization and transmuting...

Specific quasi-rents build up in a wide variety of economic relationships, and are exposed to opportunism unless fully protected by contract. The recognition that such contracts are often incomplete has yielded major insights into the organization of microeconomic exchange. Rent appropriation,...

Since US output peaked in December 2007 growth has been anaemic and output remains below potential. In addition, US unemployment has been persistently high. It increased from 4.4 per cent in May of 2007 to 10 per cent in October 2009 and was still at 6.7 per cent at the beginning of 2014. The...

This paper provides some background for the book, Handbook of Real Estate and Macroeconomics. It gives an overview of different chapters and how various themes and ideas can be connected. Directions for future research are also discussed

This paper asks whether relations of the IS-LM type can sensibly be used for the aggregate demand portion of a dynamic optimizing general equilibrium model intended for analysis of issues regarding monetary policy and cyclical fluctuations. The main result is that only one change -- the addition...