With the rising importance of China’s role in the world economy, the Chinese economic fluctuation has become a more and more significant factor that influences the world economy. Therefore, it is an interesting issue for all circles as well as academicians that whether the real economic interconnection leads to volatility spillover between China’s and international stock markets. In this paper,...

The present paper analyzes the role of non-convex adjustment costs to capital in a stylized two country model of real business cycles. In contrast to the closed economy case, we find fixed adjustment costs to have a significant influence on investment decisions for each of the countries just as for the aggregated world economy. Like convex costs, fixed adjustment costs substantially limit capit...

The fall of the Iron Curtain in 1989 sparked a wave of economic and political liberalization all over the world. Main beneficiaries of this development have been countries in Central and Eastern Europe and Asia, whose societies and markets have embarked on a reform path to a democratic society and market economy. Economies in Latin America and Africa have also been forced to reconsider their ec...

There is a crisis in multilateralism.  No major new binding rules relating to international commerce have come into force in more than 20 years.  Demands by some nations for rules in new areas are not being met. The negotiations in the WTO of trade rules and the negotiations under the UN Framework Convention on Climate Change to devise rules restricting the annual emissions of greenhouse ga...

The structure and performance of the Australian economy have been shaped profoundly by international linkages. Despite their enduring importance, however, the strength of the links between Australia and the rest of the world have varied considerably through time. The depression of the 1930s, and then World War II, saw the trade links weakened substantially. In the three and a half decades that ...

abstract in this paper, the effect of foreign sector macro-variable on inflation dynamics and firms’ pricing behavior has been investigated in the context of a small open economy new keynesian phillips curve. this curve is derived and estimated for a developing oil-exporting economy suffering from dutch disease. this version of nkpc is an extension of leith and malley’s (2007) small open econom...