We provide a model connecting the global saving glut to productivity growth. The key feature
is that the tradable sector is the engine of growth of the economy. Capital flows from …

Empirical evidence suggests that recessions have long-run effects on the economy's
productive capacity. Recent literature embeds endogenous growth mechanisms within …

The UK economy experienced significant macroeconomic adjustments following the 2016
referendum on its withdrawal from the European Union. To understand these adjustments …

We find that variation in expected US productivity explains more than half of G6 exchange
rate fluctuations vis-a-vis the USD. Both correctly-anticipated changes in productivity and …

We uncover the major drivers of macro aggregates and the real exchange rate at business
cycle frequencies in Group of Seven countries. The estimated drivers of key macro variables …

This paper proposes a framework to jointly study productivity and trade dynamics during
financial crises. The persistent output loss caused by crises is driven by lower productivity …

We propose a model with costly international financial intermediation that links exchange
rate movements to shifts in the demand for domestically produced goods relative to the …

This paper studies the drivers of the US real exchange rate (RER), with a particular focus on
its comovement with net trade (NT) flows. We consider the entire spectrum of frequencies, as …

We find that variation in expected US productivity explains over half of US dollar/G7
exchange rate fluctuations. Both correctly-anticipated changes in productivity and …

We provide a financial development perspective for the joint use of foreign reserves and
capital controls. Empirical evidence indicates that countries with intermediate levels of …