The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?
- Topics:
- Equity
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Overview: The central claim in this paper is that by explicitly introducing costs of international trade (narrowly, transport costs but more broadly, tariffs, non-tariff barriers and other trade costs), one can go far toward explaining a great number of the main empirical puzzles that international macroeconomists have struggled with over twenty-five years. The paper also addresses a variety of international pricing puzzles, including the purchasing power parity puzzle, and what is termed as the exchange-rate disconnect puzzle.
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Format: PDF | Size: 957KB | Date: Jul 2000 | Pages: 66




