Macroeconomic interdependence under incomplete markets

Journal of International Economics

Volumn 70, Issue 2, 2006, Pages 428-450

  Ghironi, Fabio ^a,b  

^a BOSTON COLLEGE   (United States)

^b EABCN ^*  (Belgium)

Author keywords

Current account; Incomplete markets; Net foreign assets; Ricardian equivalence; Stationarity

Indexed keywords

CURRENCY MARKET; FOREIGN DIRECT INVESTMENT; INTERNATIONAL TRADE; MACROECONOMICS; MODEL; PRODUCTIVITY; TRADE FLOW;

EID: 33751093022     PISSN: 00221996     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jinteco.2005.12.006     Document Type: Article

References (28)

1. Baxter M., and Crucini M. Business cycles and the asset structure of foreign trade. International Economic Review 36 (1995) 821-853
2. Becker R.A. On the long-run steady state in a simple dynamic model of equilibrium with heterogeneous households. Quarterly Journal of Economics 95 (1980) 375-382
3. Benigno P. Price stability with imperfect financial integration. CEPR Discussion Paper No. 2854 (2001)
4. Blanchard O.J. Debt, deficits, and finite horizons. Journal of Political Economy 93 (1985) 223-247
5. Blanchard O.J., and Kahn C.M. The solution of linear difference models under rational expectations. Econometrica 48 (1980) 1305-1311
6. Buiter W.H. Time preference and international lending and borrowing in an overlapping-generations model. Journal of Political Economy 89 (1981) 769-797
7. Cardia E. The dynamics of a small open economy in response to monetary, fiscal, and productivity shocks. Journal of Monetary Economics 28 (1991) 411-434
8. Cavallo M., and Ghironi F. Net foreign assets and the exchange rate: redux revived. Journal of Monetary Economics 49 (2002) 1057-1097
9. Cole H.L., and Obstfeld M. Commodity trade and international risk sharing: how much do financial markets matter?. Journal of Monetary Economics 28 (1991) 3-24
10. Corsetti G., and Pesenti P. Welfare and macroeconomic interdependence. Quarterly Journal of Economics 116 (2001) 421-446
11. Devereux M.B. A tale of two currencies: the Asian crisis and the exchange rate regimes of Hong Kong and Singapore. Review of International Economics 11 (2003) 38-54
12. Finn M.G. On savings and investment dynamics in a small open economy. Journal of International Economics 29 (1990) 1-21
13. Ganelli G. The new open economy macroeconomics of government debt. Journal of International Economics 65 (2005) 167-184
14. Ghironi F. Understanding macroeconomic interdependence: do we really need to shut off the current account?. Working Paper No. 465 (2000), Department of Economics, Boston College
15. Ghironi F. Macroeconomic interdependence under incomplete markets. Working Paper No. 471 (2000), Department of Economics, Boston College
16. Ghironi F., İşcan T.B., and Rebucci A. Productivity shocks and consumption smoothing in the international economy. Working Paper No. 565 (2003), Department of Economics, Boston College
17. Heathcote J., and Perri F. Financial autarky and international business cycles. Journal of Monetary Economics 49 (2002) 601-627
18. Lai H., and Trefler D. The gains from trade with monopolistic competition: specification, estimation, and mis-specification. NBER Working Paper No. 9169 (2002)
19. Lane P.R., and Milesi-Ferretti G.M. The external wealth of nations: measures of foreign assets and liabilities for industrial and developing countries. Journal of International Economics 55 (2001) 263-294
20. Ljungqvist L., and Sargent T.J. Recursive Macroeconomic Theory. Second edition (2004), MIT Press, Cambridge
21. Obstfeld M., and Rogoff K. Exchange rate dynamics redux. Journal of Political Economy 103 (1995) 624-660
22. Obstfeld M., and Rogoff K. The intertemporal approach to the current account. In: Grossman G.M., and Rogoff K. (Eds). Handbook of International Economics vol. 3 (1995), North-Holland, Amsterdam 1731-1799
23. Obstfeld M., and Rogoff K. Foundations of International Macroeconomics (1996), MIT Press, Cambridge
24. Obstfeld M., and Rogoff K. The six major puzzles in international macroeconomics: is there a common cause?. In: Bernanke B., and Rogoff K. (Eds). NBER Macroeconomics Annual 2000 (2001), MIT Press, Cambridge 339-390
25. Schmitt-Grohé S., and Uribe M. Closing small open economy models. Journal of International Economics 61 (2003) 163-185
26. Smets F., and Wouters R. Openness, imperfect exchange rate pass-through and monetary policy. Journal of Monetary Economics 49 (2002) 947-981
27. Weil P. Overlapping families of infinitely-lived agents. Journal of Public Economics 38 (1989) 183-198
28. Weil P. Money, time preference, and external balance. European Economic Review 33 (1989) 564-572