After an expansionary monetary policy shock employment increases and unemployment falls. In standard New Keynesian models the fall in aggregate unemployment does not affect employed workers at all. However, Lüchinger, Meier and Stutzer (2010) found that the risk of unemployment negatively...

While exchange rate dynamics is an important topic in open economy macroeconomics, the standard tool commonly used to introduce exchange rate dynamics - the Dornbusch (1976) seminal paper along with phase diagram - is not well-suited for undergraduate students as most of them do not have yet a...

German exports suffered a sharp decline during the international economic and financial crisis. But recently a strong turnaround has taken place. Macroeconomic stimulus measures in numerous countries have likely contributed to this export recovery. Germany's manufacturers are at the forefront of...

Im Zug der internationalen Wirtschafts- und Finanzkrise sind die deutschen Exporte stark eingebrochen, inzwischen ist aber eine deutliche Trendwende eingetreten. Die Exporteure profitieren offenbar auch in einem erheblichen Maße von den in zahlreichen Volkswirtschaften aufgelegten...

The curse of dimensionality, a problem associated with analyzing the interaction of a relatively large number of endogenous macroeconomic variables, is a prevailing issue in the open economy macro literature. The most common practise to mitigate this problem is to apply the so-called Small Open...

The topic of contagion has gained importance in the last few decades, earning its place amongst the most debated topics in international economics. Contagion is a phenomenon where market disturbances in crisis times are observed to spread from one country to the other in the form of comovements...

This paper studies the role of the German economy for the existence of the so called European business cycle, a term referring to the regularly observed synchronization of the national business cycles in Europe. Using a three-country general equilibrium model, we are able to simulate impulse...

We study the welfare and macroeconomic implications of simple and implementable fiscal policy rules in commodity-dependent economies, where a large share of output, exports, and government revenues depend on exogenous and volatile commodity prices. Using a multi-sector New Keynesian model...

Singapore's unique monetary policy consists of a managed exchange rate framework that can be characterized as a Taylor-like reaction function with the nominal devaluation rate instead of the nominal interest rate as the main policy instrument. We build a small open economy New Keynesian model to...

Are there still significant common macroeconomic fluctuations between Nigeria and its industrial trade partners, even with the increased growth performance and resilience of emerging market and developing economies to developments originating from advanced economies in recent years? This paper...