This paper provides new evidence in support of the idea that bouts of optimism and
pessimism drive much of US business cycles. In particular, we begin by using sign …

This paper argues that it is important to distinguish surprise and anticipated components of
total factor productivity (TFP) when we study the international transmission of TFP shocks …

This paper investigates the sources of the current account (CA) imbalances experienced
within the euro area periphery (Greece, Ireland, Portugal and Spain) before the Great …

This paper provides new evidence that bouts of optimism and pessimism are an important
source of US business cycles, using the identification schemes based on sign restrictions …

Real exchange rates exhibit important low-frequency fluctuations. This makes the analysis of
real exchange rates at all frequencies a more sound exercise than the typical business cycle …

With the development of modern international (real and monetary) business cycle models,
the open economy literature has been increasingly concerned with understanding the role of …

Conventional globalization theory states that regional economic integration will precede
price standardization across participating countries due to the increased buying power of …

We decompose the correlation between relative consumption and the real exchange rate in
its dynamic components at different frequencies. Using multivariate spectral analysis …

We propose a fully flexible, complete-market model of the international business cycle that is
consistent with a negative correlation between the real exchange rate and relative …

This paper investigates the sources of current account imbalances accumulated within the
European Monetary Union before the Great Recession. First, it documents that starting in …