New Open Economy Macroeconomics Homepage

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What's 'new'?

The 'New Open Economy Macroeconomics' simply refers to a growing body of literature that attempts to address open economy issues in a dynamic general equilibrium version of the open economy with nominal rigidities and market imperfections. These intertemporal maximising models have a number of advantages over their older Mundell-Fleming cousins. The microfoundations allow us to write more exacting models. In particular, with market power for agents, we can provide an explicit justification for the Keynesian assumption of short-run demand determined output. Furthermore, with utility maximising agents, we can analyze the welfare implications of policy decisions within the context of the model. While the Mundell-Fleming model continues to be the dominant model of open economy macroeconomics, these new innovations have and hope to continue to yield new insights into the questions that interest those working in the field.

I try to update this page every so often with varying success.  You should treat the page (as with most webpages) as a perpetual work-in-progress.  I am now starting an email list for those who would like to be notified when the page is updated.  If you would like to be included on this list, please email me.

Some people have reported that the links on this page only work for them if they try a couple of times or hit the reload button after trying once. My apologies if you fall into this category. I have no idea how to correct the problem.

Speaking of NEW... 

Benigno, Gianluca, and Christoph Thoenissen (2002), "Equilibrium Exchange Rates and Supply-side Performance," Bank of England Working Paper No. 156.

Bouakez, Hafedh (2002), "Nominal Rigidity, Desired Markup Variations, and Real Exchange Rate Persistence," Bank of Canada Working Paper 2002-26.

Bowman, David and Brian Doyle (2003), "New Keynesian, Open-Economy Models and their Implications for Monetary Policy," in Price Adjustment and Monetary Policy, proceedings of a conference held by the Bank of Canada, November 2002. Ottawa: Bank of Canada.

Corsetti, Giancarlo, Luca Dedola and Sylvain Leduc (2003), "International Risk Sharing and the transmission of productivity shocks," photocopy, Yale University.

Dib, Ali (2001), "An Estimated Canadian DSGE Model with Nominal and Real Rigidities," Bank of Canada Working Paper 2001-26.

Dib, Ali (2003), "Monetary Policy in an Estimated Canadian Small-Open Economy Model," photocopy, Bank of Canada.

Ghironi, Fabio (2002), "Endogenously Persistent Output Dynamics: A Puzzle for the Sticky-Price Model?" Boston College Econ. Dept. WP 527, March.

Ghironi, Fabio and Alessandro Rebucci (2002), "Monetary Rules for Emerging Market Economies," IMF Working Paper 02/34.

Ghironi, Fabio, Talan Iscan and Alessandro Rebucci (2003), "Productivity Shocks and Consumption Smoothing in the International Economy," photocopy, Boston College.

Kollmann, Robert (2003), "Monetary Policy Rules in an Interdependent World," photocopy, University of Bonn.

Hunt, Benjamin and Alessandro Rebucci (2003), "The US Dollar and Trade Deficit: What Accounts for the Late 1990s?" photocopy, International Monetary Fund.

Laxton, Douglas and Paolo Pesenti (2002), "Monetary Rules for Small, Open, Emerging Economies," Journal of Monetary Economics 50 (5), forthcoming July 2003. Previously presented at the Carnegie-Rochester Conference on Public Policy, November 2002.

Lubik, Thomas and Frank Schorfheide (2003), "Do Central Banks Respond to Exchange Rates Movements? A Structural Investigation," photocopy, Johns Hopkins University.

Natalucci, Fabio M., and Federico Ravenna (2002), "The Road to Adopting the Euro: Monetary Policy and Exchange Rate Regimes in EU Candidate Countries," International Finance Discussion Paper 2002-741 (December),

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The following is a list of the papers (that I know of) in the area of new open economy macroeconomics. I have organized (for now) the papers into surveys, NBER or CEPR working papers, other working papers, and published articles. People can let me know of new papers or changes in the status of papers on this page by emailing me.

Surveys:

Lane, Philip (2001), "The New Open Economy Macroeconomics: A Survey," Journal of International Economics, (August):.(also mimeo at Trinity College Dublin and CEPR Discussion Paper #2115, March 1999)

Sarno, Lucio (2000), "Towards a New Paradigm in Open Economy Modeling: Where do we Stand?" mimeo, St. Louis FRB. (technical version of Federal Reserve Bank of St. Louis Review 83(3): 21-26.)

NBER or CEPR Working Papers

Andersen, Torben M and Niels C Beier (2000), "Noisy Financial Signals and Persistent Effects of Nominal Shocks in Open Economies," CEPR 2360, January.

Bacchetta, Philippe and Eric van Wincoop (2001), "A Theory of the Currency Denomination of International Trade," mimeo, University of Virginia. (Also NBER Working Paper #9039.)

Benigno, Gianluca and Pierpaolo Benigno (2001), "Monetary Policy Rules and the Exchange Rate," CEPR Discussion Paper 2807.

Benigno, Gianluca and Pierpaolo Benigno (2001), "Price Stability as a Nash Equilibrium in Open Economy," CEPR Discussion Paper 2757.

Benigno, Pierpaolo (2001), "Optimal Monetary Policy in a Currency Area," CEPR Discussion Paper 2755.

Benigno, Pierpaolo (2001), "Price Stability with Imperfect Financial Integration," CEPR Discussion Paper 2854.

Canzoneri, Matthew, Robert Cumby and B. Diba (2001), "The Need for International Policy Coordination: What's Old, What's New, What's Yet to Come?," mimeo, Georgetown University, (November). (Also NBER Working Paper #8765.)

Cespedes, Luis Felipe, Roberto Chang, Andres Velasco (2000), "Balance Sheets and Exchange Rate Policy," NBER Working Paper 7840, (August).

Chari, V.V., Patrick J. Kehoe, and Ellen R. McGrattan (2000), "Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates?" NBER Working Paper 7869, September.

Clarida, Richard, Jordi Gali and Mark Gertler (2001), "Optimal Monetary Policy in Closed versus Open Economies: An Integrated Approach," NBER Working Paper #8604.

Corsetti, Giancarlo Corsetti and Paolo Pesenti (2001), "International dimensions of optimal monetary policy," mimeo (and NBER Working Paper 8230), Yale and NBER and FRB of New York and NBER, (April).

Corsetti, Giancarlo and Paolo Pesenti (2002), "Self-validating optimal currency areas," mimeo, FRB New York and Yale University.

Corsetti, Giancarlo and Luca Dedola (2002), "The Macroeconomics of Price Discrimination," mimeo, Yale University.

Devereux, Michael and Charles Engel (1998a), "Fixed versus Floating Exchange Rates: How Price Setting Affects the Optimal Choice of Exchange-Rate Regime," mimeo, University of British Columbia/ Chinese University of Hong Kong and the University of Washington. (also NBER Working Paper #6867)

Devereux, Michael and Charles Engel (1998b), "The Choice of Exchange-Rate Regime: Price Setting Rules and Internationalized Production," mimeo, University of British Columbia/ Chinese University of Hong Kong and the University of Washington. (also NBER Working Paper #6992)

Devereux, Michael and Charles Engel (2000), "Monetary Policy in the Open Economy Revisited: Price Setting and Exchange Rate Flexibility," NBER Working Paper 7665.

Devereux, Michael B. and Charles Engel (2001), "Endogenous Currency of Price Setting in a Dynamic Open Economy Model," NBER Working Paper #8559.

Devereux, Michael, Charles Engel, and Peter Storgaard (2002), "Endogenous Exchange Rate Pass-Through" mimeo, University of Wisconsin.

Engel, Charles (2000a), "Comments on Obstfeld and Rogoff's 'The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?'" NBER Working Paper #7818, (July).

Lee, Jaewoo and Menzie Chinn (1998), "The Current Account and the Real Exchange Rate: A Structural VAR Analysis of Major Currencies," NBER Working Paper #6495.

Obstfeld, Maurice (2002b), "Exchange Rates and Adjustment: Perspectives from the New Open Economy Macroeconomics," mimeo, University of California at Berkeley.

Obstfeld, Maurice and Kenneth Rogoff (1998), "Risk and Exchange Rates," NBER Working Paper #6694. (New version)

Other Working Papers, mimeos, etc.:

Andersen, Torben M. and Niels C. Beier (1999), "Propagation of Nominal Shocks in Open Economies," University of Aarhus, Working Paper 1999-10.

Benigno, Gianluca (1999), "Real Exchange Rate Persistence with Endogenous Monetary Policy," London School of Economics, photocopy.

Benigno, Gianluca (2001), "Real Exchange Rate Persistence and Monetary Policy Rules," mimeo.

Bergin, Paul (1995), "Mundell-Fleming Revisited: Monetary and Fiscal Policies in a Two-Country Dynamic Equilibrium Model with wage contracts," mimeo, University of California at Davis.

Betts, Caroline and Michael Devereux (1998b), "The International Effects of Monetary and Fiscal Policy in a Two-Country Model," mimeo, University of Southern California and University of British Columbia/ Chinese University of Hong Kong.

Borondo, Carlos (2000), "International Transmission of Monetary Shocks with Interest Rates Rules," mimeo, Universidad de Valladolid (July).

Brunnermeier, Markus and Clemens Grafe (1999), "Contrasting Different Forms of Price Stickiness: An Analysis of Exchange Rate Overshooting and the Beggar Thy Neighbour Policy," FMG Discussion Paper 329, London School of Economics.

Canzoneri, Matthew, Robert Cumby and B. Diba (2001), "Notes on Models with Monopolistic Competition and Sticky Prices (and/or Wages), a student primer," mimeo, Georgetown University, (August), [Appendices to Notes].

Cavallari, Lilia (2001), "Inflationary performance in a monetary union with unionised labour markets," mimeo.

Chang, Roberto and Michael Devereux (1998), "Dynamic Collusion and the Real Exchange Rate," work in progress, University of British Columbia/ Hong Kong University of Science and Technology and Federal Reserve Bank of Atlanta.

Chari, V.V., Pat Kehoe and Ellen McGrattan (1998a), "Monetary Shocks and Real Exchange Rates in Sticky Price Models of International Business Cycles," Federal Reserve Bank of Minneapolis Research Department Staff Report #223.

Chari, V.V., Pat Kehoe and Ellen McGrattan (1998b), "Sticky Price Models of the Business Cycle: Can the Contract Multiplier Solve the Persistence Problem?" Federal Reserve Bank of Minneapolis Research Department Staff Report #217.

Cheung, Yin-Wong, Menzie Chinn, and Eiji Fujii (1999), "Market Structure and the persistence of sectoral deviations from purchasing power parity," paper presented in the AEA panel on PPP, New York City, January.

Chinn, Menzie and Eswar Prasad (2000), "Medium-Term Determinants of Current Accounts in Industrial and Developing Countries: An Empirical Exploration," mimeo, February.

Coutinho, Leonor (2000), "International Monetary Transmission After EMU," mimeo, European University Institute, (April).

Devereux, Michael (1998), "Do Fixed Exchange Rates Inhibit Macroeconomic Adjustment?," mimeo, University of British Columbia/ Chinese University of Hong Kong.

Devereux, Michael (1999), "A Simple Dynamic General Equilibrium Model of the Trade-off between Fixed and Floating Exchange Rates," University of British Columbia, mimeo.

Dornbusch, Rudiger (1998), "Notes on Intertemporal Trade in Goods and Money," MIT, mimeo, November.

Doyle, Brian M. (1998), "Reputation and Currency Crises ("Countries of a Feather Devalue Together")," mimeo, Princeton University.

Faia, Ester (2001a), "Stabilization policy in a two country model and the role of financial frictions," ECB Working Paper No. 56, (April).

Faia, Ester (2001b), "Monetary Policy in a World with Different Financial Systems," mimeo, New York University.

Federici, D. and Sadun R. (2001), "Fiscal Shocks and the Current Account," CIDEI Working Paper 63, April.

Friberg, Richard (1997), "Should the core fear the outs? Price setting practices and international monetary transmission," Working paper series in Economics and Finance 203, Stockholm School of Economics, October.

Gagnon, Joseph (1996), "Net Foreign Assets and Equilibrium Exchange Rates: Panel Evidence," mimeo, International Finance Discussion Paper No. 574, Board of Governors of the Federal Reserve System.

Gali, Jordi and Tommaso Monacelli (1999), "Optimal Monetary Policy and Exchange Rate Volatility in a Small Open Economy," Boston College Working Paper 438.

Ganelli, Giovanni (2002), "The New Open Economy Macroeconomics of Government Debt," mimeo, Trinity College Dublin.

Ghironi, Fabio (1999a), "U.S.-Europe Economic Interdependence and Policy Transmission," mimeo, Boston College.

Ghironi, Fabio (1999b), "Towards New Open Economy Macroeconometrics," mimeo, Boston College.

Ghironi, Fabio (1999c), "Alternative Monetary Rules for a Small Open Economy: The Case of Canada," mimeo, Boston College.

Ghironi, Fabio and Alessandro Rebucci (2000), "Monetary Rules for Emerging Market Economies," mimeo, Boston College.

Hau, Harald (1998b), "Real Exchange Volatility and Economic Openness: Theory and Evidence," mimeo, ESSEC.

Huang, Kevin X. D. and Zheng Liu (2000), "Vertical International Trade as a Monetary Transmission Mechanism in an Open Economy," mimeo, Clark University, (February).

Kim, Soyoung (1999), "International Transmission of the U.S. Monetary Policy Shocks: Evidence from VAR's," University of Illinois at Urbana-Champaign, mimeo.

Kollman, Robert (1998), "International Financial Markets and Business Cycles: A General Equilibrium Approach with Money and Nominal Rigidities," mimeo, University of Paris XII.

Kollmann, Robert (2001), "Macroeconomic Effects of Nominal Exchange Rate Regimes: New Insights into the Role of Price Dynamics," mimeo, Univerisity of Bonn.

Lane, Philip and Gian Maria Milesi-Ferretti (2000), "The Transfer Problem Revisited: Real Exchange Rates and Net Foreign Assets" mimeo, Trinity College Dublin.

Matsumoto, Akito (2002), "Exchange Rate Pass-Through, Exchange Rate Volatility, and Exchange Rate Disconnect—An Extension," mimeo, Univrsity of Wisconsin, (April).

Monacelli, Tommaso (1999) "Into the Mussa Puzzle: Monetary Policy Regimes and the Real Exchange Rate in a Small Open Economy", Mimeograph, New York University.

Monacelli, Tommaso (2002), "Monetary Policy in a Low Pass-Through Environment,” April, for ESSIM Conference, Tarragona.

Natalucci, Fabio (2000), "Exchange Rate Regimes, Financial Distress and the Timing of Devaluations," mimeo, NYU (October).

Senay, Ozge (1998b) "The Effectiveness of Monetary and Fiscal Policy with Different Degrees of Goods and Financial Market Integration", University of York, Department of Economics Discussion papers No; 98/14

Senay, Ozge (1998c), "Disinflation Dynamics in an Open Economy General Equilibrium Model", University of York, Department of Economics Discussion Papers No: 98/15.

Senay, Ozge (2001), "The Role of the Exchange  Rate in Monetary Policy Rules," mimeo, Middle East Technical University.

Smets, F. and R. Wouters (2000), "Optimal Monetary Policy in an Open Economy," European Central Bank, mimeo.

Smets, Frank and Raf Wouters (2002), "Openness, Imperfect Exchange Rate Pass-Through, and Monetary Policy," European Central Bank Discussion Paper 128, (March).

Sutherland, Alan (2000), "Inflation Targeting in a Small Open Economy," University of St. Andrew's, mimeo, (November).

Sutherland, Alan (2001), "Incomplete pass-through and the welfare effects of exchange rate variability," mimeo, St. Andrew's.

Sutherland, Alan (2002), "International Monetary Policy Coordination and Financial Market Integration," mimeo, University of St. Andrew's.

Sutherland, Alan (2002), "Cost-Push Shocks and Monetary Policy in Open Economies," mimeo, University of St. Andrew's.

Sutherland, Alan (2002), "The Expenditure Switching Effect, Welfare and Monetary Policy in a Small Open Economy," mimeo, University of St. Andrew's.

Taylor, John (2000), "The Role of the Exchange Rate in Monetary Policy Rules," mimeo, Stanford.

Tille, Cedric (1998a), "The International and Domestic Welfare Effects of Monetary Policy under Pricing to Market," second chapter, Ph.D. dissertation, Princeton University.

Tille, Cedric (1998b), "The Welfare Effects of Monetary Shocks under Pricing to Market: A General Framework," third chapter, Ph.D. dissertation, Princeton University.

Tille, Cedric (2000a), "'Beggar Thy Neighbor' or 'Beggar Thyself'? The Income Effect of Exchange Rate Fluctuations," Staff Report 112, Federal Reserve Bank of New York, (September).

Tille, Cedric (2000), "Is the Integration of World Asset Markets Necessarily Beneficial in the Presence of Monetary Shocks?", Staff Report 114, Federal Reserve Bank of New York, (November).

Tille, Cedric (2002), "On the Distributional Effects of Exchange Rate Fluctuations", Federal Reserve Bank of New York Staff Report 146, March 2002

Tille, Cedric (2002), "How valuable is exchange rate flexibility?  Optimal monetary policy under sectoral shocks," Federal Reserve Bank of New York Staff Report 146, March.

Velasco, Andres (1997), "Multiplicity and Cycles in a Real Model of the Open Economy," mimeo, New York University.

Weerapana, Akila (2000), "The Performance of Simple Monetary Policy Rules in a Large Open Economy," Department of Economics, Wellesley College Working Paper #2000-05.

Published Articles:

Andersen, Torben M. (1998), "Persistence in Sticky Price Models," European Economic Review, 42, 593-603.

Bacchetta, Philippe and Eric van Wincoop (1998), "Does Exchange Rate Stability Increase Trade and Capital Flows?", mimeo (also NBER Working Paper #6704). Forthcoming in the American Economic Review.

Beaudry, Paul and Micheal Devereux (1995), "Money and the Real Exchange Rate with Sticky Prices and Increasing Returns," Carnegie-Rochester Series on Public Policy, 43, 55-101.

Benigno, Pierpaolo (2002), "A Simple Approach to International Monetary Policy Coordination," Journal of International Economics, 57, 1 (June), 177-196.

Bergin, Paul (2001), "Devaluations, Consumption Smoothing and the Current Account," Review of International Economics, forthcoming.

Bergin, Paul (2002), "Putting the 'New Open Economy Macroeconomics' to a Test," Journal of International Economics, forthcoming.

Bergin, Paul and Robert Feenstra (2000), "Staggered Pricing, Translog Preferences and Endogenous Persistence," Journal of Monetary Economics, 45, 3 (June), 657-80. (Also NBER Working Paper #6492.)

Bergin, Paul and Robert Feenstra (2001), "Pricing to Market, Staggered Contracts and Real Exchange Rate Persistence," Journal of International Economics, 54(2) (August), 333-359.  (Also NBER Working Paper #7026)

Betts, Caroline and Michael Devereux (1996), "The Exchange Rate in a Model of Pricing to Market," European Economic Review, 40, 1007-1021.

Betts, Caroline and Michael Devereux (1998a), "Exchange Rate Dynamics in a Model of Pricing to Market," Journal of International Economics,  47, 569-598.

Betts, Caroline and Michael Devereux (1999), "International Monetary Policy Coordination and Competitive Depreciation: A Re-Evaluation", (Forthcoming Journal of Money, Credit and Banking).

Betts, Caroline and Michael Devereux (1997), "The International Monetary Transmission Mechanism: A Model of Real Exchange Rate Adjustment under Pricing-to-Market," Journal of International Economics, forthcoming.

Caselli, Paola (1998), "Fiscal Considerations under Fixed Exchange Rates," Temi di discussione del Servisio Studi No. 336, Banca d'Italia. Forthcoming in the European Economic Review.

Cavallari, Lilia (?) "Current account and exchange rate dynamics," forthcoming in Economic Notes.

Cavallari, Lilia (1999), "Inflation and openness with non-atomistic wage setters," forthcoming Scottish Journal of Political Economy.

Cavallari, Lilia (2001), "Current Account and Exchange Rate Dynamics," Economic Notes, 30, 1 (February), 27-51.

Cavallo, Michele and Fabio Ghironi (2001), "Net Foreign Assets and the Exchange Rate: Redux Revived," Journal of Monetary Economics, 49 (July), 1057-1097. July

Clarida, Richard (2001), "The Empirics of Monetary Policy Rules in Open Economies," International Journal of Finance and Economics, 6(4) (October), 315-323.  (Also NBER Working Paper #8603.)

Clarida, Richard, Jordi Gali and Mark Gertler (2001), "Optimal Monetary Policy in Open versus Closed Economies: An Integrated Approach," forthcoming in the American Economic Review: Papers and Proceedings.

Corsetti, Giancarlo and Paolo Pesenti (1999), "Welfare and Macroeconomic Interdependence," Quarterly Journal of Economics, (May) (previously NBER Working Paper #6307).

Corsetti, Giancarlo, Paolo Pesenti, Nouriel Roubini and Cedric Tille (2000), "Competitive Devaluations: Toward A Welfare-Based Approach," Journal of International Economics, 51, 1 (June):217-241. (previously NBER Working Paper 6889) (with Technical Appendix)

Corsetti, Giancarlo and Paolo Pesenti (1999), "Could the Ins Hurt the Outs? A Welfare Analysis of International Fiscal Links," forthcoming in Andrew Hughes Hallett, Michael M. Hutchinson, and Svend E. Hogaard Jensen (eds.), Fiscal Aspects of European Monetary Integration, Cambridge, U.K.: Cambridge University Press.

Devereux, Michael (1997), "Real Exchange Rates and Macroeconomics: Evidence and Theory," Canadian Journal of Economics, 30, 773-808.

Devereux, Michael (2001), "Monetary Policy, Exchange Rate Flexibility, and Exchange Rate Pass-through" in Revisiting the Case for Flexible Exchange Rates, Bank of Canada, (January).

Devereux, Michael, Charles Engel and Cedric Tille (2003), "Exchange Rate Pass-Through and the Welfare Effects of the Euro," International Economic Review, 44, 1(February), 223-42. (Also NBER Working Paper 7382.)

Devereux, Michael, and Charles Engel (2002), "Exchange Rate Pass-Through, Exchange Rate Volatility, and Exchange Rate Disconnect," forthcoming, Journal of Monetary Economics.

Dixon, Huw (1994), "Imperfect Competition and Open Economy Macroeconomics, " in Frederick van der Ploeg (ed.), The Handbook of International Macroeconomics, Basil Blackwell, Oxford, UK.

Engel, Charles (1998), "Accounting for Real Exchange Rate Changes," Journal of Political Economy, 107 (June), 507-538.

Engel, Charles (1999), "On the Foreign Exchange Risk Premium in Sticky-Price General Equilibrium Models," International Tax and Public Finance, 6, 4 (November), 491-505. (Also NBER working paper no. 7067.)

Engel, Charles (2001), "Optimal Exchange Rate Policy: The Influence of Price Setting and Asset Markets," Journal of Money, Credit, and Banking, 33, 2 (May), 518-541. (Also NBER Working Paper 7889.)

Engel, Charles (2002), "The Responsiveness of Consumer Prices to Exchange Rates: A Synthesis of Some New Open-Economy Macro Models," forthcoming, The Manchester School.

Engel, Charles (2002), "Expenditure Switching and Exchange Rate Policy," NBER Macroeconomics Annual, MIT Press, Cambridge, MA.

Fender, John and Chong K Yip (1999), "Tariffs and Exchange Rate Dynamics Redux," Journal of International Money and Finance, 19, 5(October), 633-655.

Friberg, Richard (1998), "In Which Currency Should Exporters Set Their Prices?" Journal of International Economics, 45, 59-75.

Gable, Jeffery and Eswar Prasad (1998), "International Evidence on the Determinants of Trade Dynamics," IMF Staff Papers, vol 45, 3 (September).

Ganelli, Giovanni (2002), "Useful Government Spending, Direct Crowding-Out and Fiscal Policy Interdependence," forthcoming Journal of International Money and Finance.

Hau, Harald (1998a), "Exchange Rate Determination: The Role of Factor Price Rigidities and Nontradables," Journal of International Economics, forthcoming.

Kim, Jinill and Sunghyun Kim (2003), "Spurious Welfare Reversals in International Business Cycle Models" Journal of International Economics, 60(2), 471-500.

Kim, Jinill, Sunghyun Kim and Andy Levin (2000), "Patience, Persistence, and Welfare Costs of Incomplete Markets in Open Economies," forthcoming in the Journal of International Economics.

Kollman, Robert (2001a), "The Exchange Rate in a Dynamic-Optimizing Current Account Model with Nominal Rigidities: A Quantitative Investigation," Journal of
International Economics, 55, 243-262.

Kollman, Robert (2001b), "Explaining International Comovements of Output and Asset Returns: The Role of Money and Nominal Rigidities," Journal of
Economic Dynamics and Control, 25, 1547-1583.

Kollmann, Robert (2002), "Monetary Policy Rules in the Open Economy: Effects on Welfare and Business Cycles," Journal of Monetary Economics, 49, 989-1015.  (Also CEPR Discussion Paper 3279.)

Krugman, Paul (1998), "It's BAAACK! Japan's slump and the return of the liquidity trap," Brookings Papers on Macroeconomic Economic Activity, v. 2.

Lane, Philip R. (1997), "Inflation in Open Economies," Journal of International Economics, 42, 327-347.

Lane, Philip R. (1999), "What Determines the Nominal Exchange Rate? Some Cross-Sectional Evidence," Canadian Journal of Economics, February 1999.

Lane, Philip R. (2001), "Money Shocks and the Current Account," in Calvo, G., R. Dornbusch, and M. Obstfeld (eds.), Money, Factor Mobility and Trade:  Essays in Honor of Robert Mundell, MIT Press, Cambridge, MA.

Loisel, Olivier and Philippe Martin (2000), "Coordination, Cooperation, Contagion and Currency Crises," Journal of International Economics, 53, 2(April), 399-419.

Lombardo, Giovanni (2001a), "On the Trade Balance Response to Monetary Shocks: The Marshall-Lerner Conditions Reconsidered," Journal of Economic Integration, 16, 4(December), 590-616.

Lombardo, Giovanni (2001b), "Price Rigidity, the Markup and the Dynamics of the Current Account," forthcoming in the Canadian Journal of Economics.

McCallum, Bennett and Edward Nelson (1999), "Nominal Income Targetting in an Open-Economy Optimizing Model," Journal of Monetary Economics, 43 (June), 553-578.

McCallum, Bennett and Ed Nelson (2000), "Monetary Policy for an Open Economy: An Alternative Framework with Optimizing Agents and Sticky Prices," Oxford Review of Economic Policy, 16, 4 (Winter), 74-91.  (Also NBER Working Paper 8175.)

Obstfeld, Maurice (2001), "International Macroeconomics: Beyond the Mundell-Fleming Model," IMF Staff Papers, 47, Special Issue, 1-39(Also NBER Working Paper #8369.)

Obstfeld, Maurice (2002a), "Inflation Targeting, Exchange Rate Pass-Through, and Volatility," American Economic Review, 92 (May), 102-107.

Obstfeld, Maurice and Kenneth Rogoff (1995a), "Exchange Rate Dynamics Redux," Journal of Political Economy, 103, 624-660.

Obstfeld, Maurice and Kenneth Rogoff (1995b), "The Intertemporal Approach to the Current Account," in Gene Grossman and Kenneth Rogoff (eds.), Handbook of International Economics, Volume 3, North Holland, Amsterdam.

Obstfeld, Maurice and Kenneth Rogoff (1996), Foundations of International Macroeconomics, MIT Press, Cambridge, MA.

Obstfeld, Maurice and Kenneth Rogoff (2000), "New Directions for Stochastic Open Economy Models," Journal of International Economics, 50 (February)117-154. (formerly NBER Working Paper #7313, August 1999)

Obstfeld, Maurice and Kenneth Rogoff (2000),"The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?," NBER Macro Annual, MIT Press, Cambridge, MA.

Obstfeld, Maurice and Kenneth Rogoff (2002), "Global Implications of Self-Oriented National Monetary Rules," Quarterly Journal of Economics, 117, 2 (May), 503-35.  (Also NBER Working Paper 7864.)

Prasad, Eswar (1997), "International Trade and the Business Cycle," mimeo, International Monetary Fund, (forthcoming in the Economic Journal, October 1999)

Rankin, Neil (1998) "Nominal Rigidity and Monetary Uncertainty in a Small Open Economy", Journal of Economic Dynamics and Control, 22, 679-702.

Razin, Assaf and Chi-Wa Yuen (2002), "The "New Keynesian" Phillips Curve: Closed Economy vs. Open Economy," Economic Letters, 75, 1 (March), 1-9.  (Also NBER Working Paper #8313.)

Rogoff, Kenneth (1998), "Comment on Krugman," Brookings Papers on Macroeconomic Economic Activity, v. 2.

Senay, Ozge (1998), "The Effects of Goods and Financial Market Integration on Macroeconomic Volatility," The Manchester School Supplement, 66, 39-61.

Sutherland, Alan (1996), "Financial Market Integration and Macroeconomic Volatility," Scandinavian Journal of Economics, 98, 521-539.

Svensson, Lars and Sweder van Wijnbergen (1989), "Excess Capacity, Monopolistic Competition and International Transmission of Monetary Disturbances," Economic Journal, 99, 785-805.

Svensson, Lars (2000), "Open Economy Inflation Targetting," Journal of International Economics, 50 (February), 155-185.

Tille, Cedric (2001), "The Role of Consumption Substitutability in the International Transmission of Shocks," Journal of International Economics, 53, April,  421-444 (previously Federal Reserve Bank of New York Staff Report 67, January).

Warnock, Francis E. (2003), "Exchange Rate Dynamics and the Welfare Effects of Monetary Policy in a Two-Country Model with Home Product Bias," Journal of International Money and Finance, 22, 343-363.

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Here is an incomplete list of people who are or who have worked in the area of new open economy macroeconomics. Clicking on their first names will give you their email addresses (if available) and clicking on their last names will give you their homepages (if available). The list is by no means complete. The idea is that people generally post their latest work and by providing web sites collectively here, it will make for easier access of the those resources. Please let me know of any errors or additions (email).
 
 

Torben Andersen Philippe Bacchetta Neils Beier Gianluca Benigno  Pierpaolo Benigno Paul Bergin Caroline Betts Markus Brunnermeier Paola Caselli Roberto Chang  Menzie Chinn Giancarlo Corsetti Leonor Coutinho  Michael Devereux Brian Doyle Charles Engel Ester Faia Robert Feenstra

Richard Friberg Joseph Gagnon  Jordi Gali Giovanni Ganelli Fabio Ghironi Harald Hau Patrick Kehoe Robert Kollmann Paul Krugman Philip Lane Jaewoo Lee  Zheng Liu :  Olivier Loisel  Giovanni Lombardo  Thomas Lubik Philippe Martin  Bennett McCallum  Ellen McGrattan

Tommaso Monacelli Fabio Natalucci  Edward Nelson  Maurice Obstfeld Paolo Pesenti Eswar Prasad  Neil Rankin Ken Rogoff Nouriel Roubini Ozge Senay Alan Sutherland Lars Svensson Cedric Tille Andres Velasco  Sweder van Wijnbergen  Eric van Wincoop Frank Warnock

 

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What would a webpage be without a few helpful links to other pages?

Other Open Economy Macroeconomics Webpages:

Gianluca Benigno, Pierpaolo Benigno and Fabio Ghironi's Monetary Policy Rules in Open Economies.
Giancarlo Corsetti's Recent Developments in Open Economy Macroeconomics
Aykut Kibritcioglu's Open Economy Macroeconomics Homepage
Joseph Joyce's International Financial Institutions Research Site at Wellesley College

Access to Journals, etc.:

NBER
CEPR
JSTOR
ECONBASE (Elsevier/North-Holland Journals)
Science Direct (Elsevier)
MIT Press Journals
Blackwell Publishers Journals
Journal of Business and Economic Statistics
Journal of Applied Econometrics
Review of Economic Studies
International Finance Section at Princeton University

News sources:

The Economist
The Financial Times
Reuters International Clippings

Institutions:

The Federal Reserve Board
International Monetary Fund
IMF Research
Bank for International Settlements
Central Banking Resources
Brookings Institution
Institute for International Economics

Data links (not included above):

International Statistical Agencies
Statistical Abstract of the United States
Data at NBER
Livingston Survey

General links:

Bill Goffe's Resources for Economists
The Dismal Scientist
Dr T's Econlinks.com
Pliny Fisk Library (Economics) at Princeton University

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