A contribution of foreign direct investment to economic growth is possibly one of the widely
examined topics in academic research in the last five decades. However, few studies have …

Existing empirical evidence suggests that real exchange rates exhibit hump-shaped
dynamics. I show that this is a robust fact across nine large, developed economies. This fact …

 If we examine assets and liabilities separately, E foreign assets (as a GDP share) caught
up with D foreign assets (as a GDP share) in the late 1990s. E liabilities remain higher than …

Standard models of international risk sharing with complete asset markets predict a positive
association between relative consumption growth and real exchange-rate depreciations …

Sovereign defaults are associated with income and trade reductions and terms-of-trade
deterioration. This paper develops a two-country model to study the interactions between …

Existing empirical studies show that financial integration affects the behavior of average
excess returns, cross-country equity market returns (EMR) correlations and real exchange …

We analyze a dynamic stochastic general equilibrium model which includes a negative
externality that arises from fossil fuels burning. The carbon released to the atmosphere by …

Theories indicate that financial integration should allow economies to better share risk and
thus improve consumption smoothing. We construct two widely used price‐based measures …

The US–China data suggest that (i) the real exchange rate (RER) volatility puzzle (high RER
volatility relative to consumption volatility),(ii) the Backus–Smith anomaly (negative …

The negative correlation between relative consumption growth and real exchange rate
changes is a recurrent puzzle in international macroeconomics (Backus and Smith, 1993) …