F41 - Open Economy Macroeconomics

• Real Exchange Rate Persistence in Dynamic General-Equilibrium Sticky-Price Models: An Analytical Characterization

  Staff Working Paper 2003-35 Hafedh Bouakez

  This paper assesses analytically the ability of dynamic general-equilibrium sticky-price models to generate persistent real exchange rate fluctuations. It develops a tractable general-equilibrium model with Calvo-type price stickiness.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Exchange rates, International topics JEL Code(s): F, F3, F31, F4, F41

• Nominal Rigidity, Desired Markup Variations, and Real Exchange Rate Persistence

  Staff Working Paper 2002-26 Hafedh Bouakez

  This paper develops and estimates a dynamic general-equilibrium sticky-price model that accounts for real exchange rate persistence.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Market structure and pricing, Monetary policy transmission JEL Code(s): F, F3, F31, F4, F41

• Currency Fluctuations, Liability Dollarization, and the Choice of Exchange Rate Regimes in Emerging Markets

  Staff Working Paper 2002-6 Patrick Osakwe

  Traditional models of exchange rate regimes ignore the destabilizing effects of sharp and unanticipated exchange rate movements.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rate regimes JEL Code(s): E, E5, E52, F, F3, F31, F4, F41

• Real Effects of Collapsing Exchange Rate Regimes: An Application to Mexico

  Staff Working Paper 1999-10 Patrick Osakwe, Lawrence L. Schembri

  This paper examines the impact of a collapsing exchange rate regime on output in an open economy in which shocks to capital flows and exports predominate. A sticky-price rational expectations model is used to compare the variability of output under the collapsing regime to that under alternative fixed and flexible regimes. Output is found to […]

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates JEL Code(s): F, F3, F31, F4, F41

• Fiscal Policy and External Balance in the G-7 Countries

  Technical Report No. 60 Stephen S. Poloz

  This paper assesses evidence, from the G-7 countries, of a link between a country's fiscal policy and its external balance, often referred to as the "twin deficits" phenomenon. It begins by reviewing the stylized facts, and then examines the theoretical case for such a link.

  Content Type(s): Staff research, Technical reports Topic(s): Balance of payments and components, Fiscal policy, International topics JEL Code(s): F, F3, F32, F4, F41, H, H6, H60

• A VAR Analysis of Economic Interdependence: Canada, the United States, and the Rest of the World

  Technical Report No. 46 John Kuszczak, John Murray

  The authors use vector autoregression (VAR) modelling techniques to examine the response of the domestic economy to foreign influences and to quantify some of the concepts and relationships relating to economic interdependence. Particular attention is given to the dynamic behaviour and interactions of the U.S. and Canadian economies over the past twenty years. Extensive empirical […]

  Content Type(s): Staff research, Technical reports Topic(s): International topics JEL Code(s): F, F1, F15, F4, F41