Although the one-factor Ricardian trade model with external economies of scale plays a significant role for the understanding of important trade issues under increasing returns, it lacks a compelling graphical representation. We propose a convincing graphical exposition that uses both the PPF...

Although the home-market effect has become one of the most important concepts in both trade theory and the new economic geography, it lacks a compelling graphical representation. The purpose of this note is to offer such a representation. We will decompose the homemarket effect into two steps: a...

This paper analyses nowcasting of manetary policy in an uncertain data environment.Nowcasting induces a relative asymmetry-a ratio of asymmetric preference for output nowcasting to the one for inflation in real-time.We propose a nowcasting Taylor rule to eliminate biases in the asymmetric...

The mini bubbles that the CEECs as well as the old EU member countries experienced in the 2000s abruptly ended, because of the Lehman Shock in September 2008. Most of the CEECs, Especially the Baltic three countries, experienced big falls of the GDP growth, and tried to restore their economies....