Handbook of international economics, Volume 6, International macroeconomics

Front Cover -- Handbook of International Economics: International Trade, Volume 5 -- Copyright -- Contents -- Contributors -- Introduction to the series -- Preface -- 1 The role of trade in economic development -- 1 Introduction -- 2 Trade and distortions: an organizing framework -- 2.1 Model setup -- 2.2 How trade shocks affect development -- 2.3 Decomposing the role of trade in the development process -- Term 1: the mechanical effects of technological change -- Term 2: changes in the factoral terms of trade -- Term 3: changes in distortion revenue -- Term 4: direct exposure effects of changes in distortions -- 2.4 Solving for reallocation effects -- 2.5 Mapping the theory to the data -- 2.5.1 Data on flows -- 2.5.2 Elasticity values -- 2.5.3 Computational procedure -- 3 The nature and extent of distortions in developing countries -- 3.1 Sales distortions -- 3.1.1 Regulations, corruption, and crime -- 3.1.2 Markups -- 3.1.3 Taxes and subsidies -- 3.1.4 Informality -- 3.1.5 Production externalities -- 3.2 Input distortions -- 3.2.1 Capital input distortions -- 3.2.2 Labor input distortions -- 3.2.3 Intermediate input distortions -- 3.2.4 Electricity and other input distortions -- 4 The effects of lowering trade barriers in economies with fixed distortions -- 4.1 Trade and reallocation in the literature -- 4.1.1 Macro-level distortions -- 4.1.2 Firm-level distortions -- 4.2 Changes in technological trade costs on imports -- 4.3 Changes in import tariffs -- 4.4 Which distortions shape the impact of trade in developing countries? -- 5 Effects of trade barriers on the extent of distortions -- 5.1 Size-dependent distortions -- 5.1.1 Size-dependent distortions in the literature -- 5.1.2 Estimating size-dependent distortions -- 5.1.3 The effects of trade shocks in the presence of size-dependent distortions -- 5.2 Direct effects of trade on distortions.

Front Cover -- Handbook of International Economics: International Macroeconomics, Volume 6 -- Copyright -- Contents -- Contributors -- Introduction to the series -- Preface -- References -- 1 The Global Financial Cycle -- 1 Introduction -- 2 Empirical evidence on global factors -- 2.1 Global factor in risky asset prices -- 2.2 Global factors in capital flows and private sector credit -- 3 What is behind the Global Financial Cycle? -- 3.1 Capital flows & -- risk -- 3.2 Transmission of US monetary policy across borders -- 3.3 Transmission of the European Central Bank monetary policy across borders -- 3.4 Transmission of the Bank of England monetary policy across borders -- 3.5 Transmission of the People's bank of China monetary policy across borders -- 4 Has the Global Financial Cycle changed after Lehman? -- 4.1 Fed unconventional monetary policy & -- Global Financial Cycle -- 4.2 ECB unconventional monetary policy & -- Global Financial Cycle -- 5 Models of the Global Financial Cycle -- 6 Global Financial Cycle, monetary and macroprudential policies: a research agenda -- References -- 2 Dominant Currency Paradigm: a review -- 1 Introduction -- 2 Empirical evidence -- 2.1 Invoicing shares in global trade -- 2.2 Currency of invoicing and ERPT -- 2.3 Co-movement between terms of trade and exchange rates -- 2.4 Trade elasticity, expenditure switching, and currency of invoicing -- 3 Asymmetry in the transmission of shocks -- 4 Optimal monetary policy -- 5 Currency choice -- 5.1 Theory: how is invoicing currency chosen? -- 5.2 Empirical evidence on currency choice -- 5.3 General equilibrium and counterfactuals -- 6 Conclusions and directions for future research -- A Additional figures -- References -- 3 Rethinking exchange rate regimes -- 1 Introduction -- 2 A brief history of the dominant currency -- 3 Rethinking exchange rate regimes.

What conclusions can be drawn from recent advances in international trade and international macroeconomics? New datasets, theoretical models, and empirical studies have resulted in fresh questions about the world trade and payment system. These chapters--six on trade and six on international macroeconomics--reveal the richness that researchers have uncovered in recent years. The chapters on foreign trade present, among other subjects, new integrated multisector analytical frameworks, the use of gravity equations for the estimation of trade flows, the role of domestic institutions in shaping comparative advantage, and international trade agreements. On international macroeconomics, chapters explore the relation between exchange rates and other macroeconomic variables; risk sharing, allocation of capital across countries, and current account dynamics; and sovereign debt and financial crises. By addressing new issues while enabling deeper and sharper analyses of old issues, this volume makes a significant contribution to our understanding of the global economy

What conclusions can be drawn from recent advances in international trade and international macroeconomics? New datasets, theoretical models, and empirical studies have resulted in fresh questions about the world trade and payment system. These chapters--six on trade and six on international macroeconomics--reveal the richness that researchers have uncovered in recent years. The chapters on foreign trade present, among other subjects, new integrated multisector analytical frameworks, the use of gravity equations for the estimation of trade flows, the role of domestic institutions in shaping