International Business Cycle

International Business Cycle Co-movements through Time

The increasing integration of the world economy in recent decades, through the liberalisation of trade and capital fl ows, has raised the possibility of a more rapid transmission of business cycle fl uctuations across countries, especially those originating in large economies such as the United States. Indeed, over the past 40 years, the Australian and US business cycles have become highly corr...

Financial Liberalization and International Business Cycle

The majority of OECD countries has experienced a reduction in macroeconomic volatility during the last two decades. This period is also characterized by a gradual liberalization of the capital accounts of from these countries. The goal of this paper is to study whether capital markets liberalization can lead to lower macroeconomic volatility. We study a business cycle model with multiple countr...

Discussion of International Business Cycle Co-movements through Time

The paper by Dan Andrews and Marion Kohler provides an interesting and very useful contribution to the empirical literature that seeks to explain the factors infl uencing bilateral output correlations. While there are a number of papers that have developed empirical models of the cross-section distribution of bilateral (de-trended) output correlations (Baxter and Kouparitsas 2005, Imbs 2004 and...

Net Exports, Consumption Volatility and International Real Business Cycle Models

Conventional two-country RBC models interpret countercyclical net exports as reflecting, in large part, the dynamics of capital. I show that, quantitatively, theoretical economies rely on counterfactual terms of trade effects: trade fluctuations, on the contrary, are driven primarily by consumption smoothing, thus generating procyclical net trade in goods. I then consider a class of preferences...

Business Cycle Features In The Iranian Economy