Most mature industrial economies faced the challenge of severe structural changes in the last decades. Traditional manufacturing moved from the metropolitan and central regions to the periphery. Later the value chain in most industries changed toward knowledge intensive and service activities....

A two-country, intertemporal, perfect-foresight model with micro foundations, Cobb-Douglas preferences and technologies, floating exchange rates, uncovered interest parity,and nominal wage rigidities is formulated. The transient and steady-state effects of a joint and unilateral monetary...

This paper studies political cycles in a setting of international interdependence. Three main results are obtained. First in this context the political cycles caused by domestic elections are usually larger than is indicated in the previous literature. Second, political cycles can be generated...

This paper studies the features of political cycles in a setting of international interdependence caused by inflation linkages. The main results are the following. Political cycles caused by domestic elections are larger than without international linkages. Political cycles caused by domestic...