Papers:

The Volatility of the Tradeable and Nontradeable Sectors: Theory and Evidence

This papers shows that in the US tradeable output is more volatile than nontradeable output. If we use a "new open economy" model to understand why, we find that it is so because tradeable output is more responsive to domestic monetary shocks.  download

Does Asia’s choice of exchange rate regime affect Europe’s exposure to US shocks? Joint with Bojan Markovic (Bank of England)

Bank of England working paper no 318, (2007).

Using a three-country (NOEM) model, we find that if Asia decides to peg her exchange rate to the dollar, the impact of US shocks on European output and inflation is likely to increase. This suggests that the shock-insulation property of floating exchange rates extends beyond the two country whose currency is free to move.  download

Can producer currency pricing models generate volatile real exchange rates?

This short note shows that low elasticities of substitution can replace full local currency pricing as a way to generate real exchange rates that are as volatile as in the data.  download

The Transmission of Shocks in Open Economies

This paper analyses the transmission of domestic monetary, government expenditure and productivity shocks in an open economy DSGE model.   download

Real Business Cycle Theory and the Volatility of Hours in Italy

coming soon