The model has four assets: domestic and foreign money and bonds. It is a two country macro model, with debt defined in terms of the net asset holdings of the domestic country. Asset flows between the domestic and foreign country are driven by the interaction between the current and capital...

This paper integrates trade and macro theory to provide a two-country, multi-product framework, including debt servicing and profit repatriation in the current account, and foreign money, financial assets and shares in the capital account. We investigate the effects of minimum wage legislation...

The aim of this paper is to investigate the effects of technological change on stock market dynamics. We develop an intertemporal optimising model, the central innovation of which is the distinction between the non-perishables and perishables sectors. We discuss the conditions likely to lead to...

This paper provides a possible explanation for stock market hysteresis following an resource discovery. We show the existence of a parallel stock market effect independent of the standard 'Dutch disease' effect of a resource discovery. That is, there is a long run fall in the stock market value...

This paper highlights the importance of having a strong alternative world currency in order to place a constraint on the ability of a single dominant world currency being able to extract resources from the rest of the world through monetary policy. The effects of monetisation of the budget...

This paper studies the relation among real stock returns, real capital flows and real exchange rate starting from a theoretical model. The model predicts that the capital inflows affect the real exchange rate and stock returns. Besides, there is an asymmetry between the effect of capital inflows...

This paper distinguishes between the degree of capital mobility and asset substitutability in a Dornbusch-type model and investigates the effect of a unit demand shock to the exchange rate volatility by using a simulation approach. Raising the interest rate causes the exchange rate to appreciate...