Are capital controls and macroprudential measures successful in achieving their objectives? Assessing their effectiveness is complicated by selection bias and endogeneity; countries which change their capital-flow management measures (CFMs) often share specific characteristics and are responding...

For those who monitor relative wealth accumulation and are unmoved by divine empathy, a disincentive to increase the rate of full manumission is possible. Consider slavery as overt, formal constraints to zero or even negative wealth accumulation; and consider freedom of ex-slaves as the...

The aim of this paper is to establish the link between the high frequency dynamics of spot exchange rates and developments in the macroeconomy. To do so, I first present a theoretical model of exchange-rate determination that bridges the gap between existing microstructure and traditional...

We provide an overview of micro-based research using models of currency trading set in a partial equilibrium setting, and in the general equilibrium setting of modern macroeconomic models. In so doing we aim to dispel the myth that micro-based research is solely focused on the details of...

This article summarizes exchange-rate research using microstructure models. It first lays out the key features of the foreign exchange market and describes how they are incorporated into a canonical model of currency trading. The empirical implications of the model are then examined. The article...

This paper delivers a simple model to generalize the successful trade liberalization experiences in East Asian countries as a strategy for attaining inclusive and sustained economic growth. The sequential approach, based on preserving existing production units while liberalizing trade-oriented...

Whether cross-border financial market integration has raised global insurance, is still a controversial issue in the literature. If this is so, what should we observe in the data? The insurance literature emphasizes that efficient risk-sharing requires financial markets to channel resources to...

A parsimonious model with home production, estimated to match moments of the “labor wedge,” explains prominent puzzles of the international business cycle. If market and home activity are substitutes, then the measured labor wedge increases whenever market consumption and employment...

This report identifies and discusses best practices to attract and promote inward and outward foreign direct investment. To better inform Canadian policy-making at various levels of government, this report provides an extensive and systematic review of the empirical evidence on the public...

This paper analyzes the relation between nominal exchange rate volatility and several macroeconomic variables, namely real per output growth, excess credit, foreign direct investment (FDI) and the current account balance, in the Central and Eastern European EU Member States. Using panel...