International Macroeconomics

EIEF/LUISS Ph.D. Program in Economics

International Macroeconomics

Pierpaolo Benigno

Suggested Books

Ljungqvist, Lars and Thomas Sargent [2004], “Recursive Macroeconomic Theory,” MIT Press.

Obstfeld, Maurice and Kenneth Rogoff [1996], “Foundations of International Macroeconomics,” MIT Press.

Uribe, Martin and Stephanie Schmitt-Grohe [2017], “Open Economy Macroeconomics,” Princeton University Press.

Topics and Selected Reading List

1) Intertemporal Approach to the Current Account

*Obstfeld Maurice and Kenneth Rogoff [1996], “Foundations of International Macroeconomics,” chapters 1-3.
Obstfeld, Maurice and Kenneth Rogoff [1995], “The Intertemporal Approach to the Current Account,” in G. Grossman and K. Rogoff, eds., Handbook of International Economics, vol.3, North Holland.
Sachs, Jeffrey [1982], “The Current Account in the Macroeconomic Adjustment Process,” Scandinavian Journal of Economics, vol. 84, pp. 147-159.

2) Asset Markets and Risk Sharing

*Ljungqvist, Lars and Thomas Sargent [2004], “Recursive Macroeconomic Theory,” chapters 8 and 17.
*Obstfeld, Maurice and K. Rogoff [1996], “Foundations of International Macroeconomics,” chapter 5.
Aiyagari, Rao [1994], “Uninsured Idionsyncratic Risk and Aggregate Saving,” Quarterly Journal of Economics, 659-684.
Clarida, Richard H. [1990] “International Lending and Borrowing in a Stochastic, Stationary Equilibrium,” International Economic Review, XXXI, 543-558.Schmitt-Grohe, Stefanie and Martin Uribe [2003], “Closing Small Open Economy Models,” Journal of International Economics, 61, 163-185.
Svensson, Lars E.O. [1988], “Trade in Risky Assets,” American Economic Review, 8, p. 375-394.

 

3) Pattern of Trade, Non-traded Goods and PPP Deviations

*Obstfeld Maurice and K. Rogoff [1996], “Foundations of International Macroeconomics,” chapter 4.
Bergin, Paul and Reuven Glick [2003], “Endogenous Nontradability and Macroeconomic Implications,” unpublished manuscript, UC at Davis.
Bergin Paul, Reuven Glick and Alan M. Taylor [2004] “Productivity, Tradability, and the Long-Run Price Puzzle,” Federal Reserve Bank of San Francisco Working Paper 2004-08.
Dornbusch, Rudiger, S. Fisher, and P. A. Samuelson [1977], “Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods,” American Economic Review, vol. 67, No. 5, p. 823.
Ghironi Fabio and Marc Melitz [2005], “International Trade and Macroeconomic Dynamics with Heterogenous Firms,” Quarterly Journal of Economics, 120.

4) Models of Pricing-to-Market and Imperfect Pass-Through

*Dornbusch, Rudiger [1987], “Exchange Rates and Prices,” American Economic Review, Vol. 77, No. 1, pp. 93-106.
Atkeson, Andrew and Ariel Burstein [2005], “Trade Costs, Pricing to Market, and International Relative Prices,” unpublished manuscript, UCLA.
Burstein, Ariel, Joao Neves and Sergio Rebelo [2003], “Distribution Costs and Real Exchange Rate Dynamics During Exchange-Rate Based Stabilizations, ” Journal of Monetary Economics, Volume 50, Issue 6, pp. 1189-1214.
Burstein, Ariel, Eichenbaum Martin and Sergio Rebelo [2004], “Modeling Exchange Rate Passthrough After Large Devaluations,” Journal of Monetary Economics, forthcoming.
Corsetti, Giancarlo and Luca Dedola [2005], “The Macroeconomics of International Price Discrimination,” Journal of International Economics, Volume 67, Issue 1, pp. 129-155.
Krugman, Paul [1986], “Pricing to Market when the Exchange Rate Changes”, NBER WP No. 1926. Also in S. Arndt and J.D. Richardson (eds.) Real-Financial Linkages among Open Economies. Cambridge, Mass. MIT Press (1993).
Obstfeld, Maurice [2002], “Exchange Rates and Adjustment: Perspectives from the New Open Economy Macroeconomics, “http://elsa.berkeley.edu/~obstfeld/

5) Exchange Rate Determination in an Optimizing Flexible-Price Model

*Benigno, Pierpaolo and Gianluca Benigno (2008), “Exchange Rate Determination under Interest Rate Rules,” Journal of International Money and Finance, Volume 27, Issue 6, Pages 971-993.
*Obstfeld Maurice and K. Rogoff [1996], “Foundations of International Macroeconomics,” pp.530-556.
Lucas, Robert [1982], “Interest Rates and Currency Prices in a Two-Country World,” Journal of Monetary Economics, Volume 10, Issue 3, pp. 335-359.
Svensson, Lars E.O. [1989], “Trade in Nominal Assets: Monetary Policy and Price Level and Exchange Risk,” Journal of International Economics, 26 (1/2) pp. 1-28.

6) Exchange Rate Determination and Fiscal Policy

*Daniel, Betty [2001], “A Fiscal Theory of Currency Crises,” International Economic Review, 42 (4), 969-988.
*Krugman, Paul [1979], “A Model of Balance-of-Payments Crises,” Journal of Money, Credit and Banking, Vol. 11, No. 3, pp. 311-325.
Burnside, Craig, Martin Eichenbaum and Sergio Rebelo [2003], “Government Finance in the Wake of Currency Crises,” NBER working paper No. 9786.
Dupor, Bill [2000], “Exchange Rate and the Fiscal Theory of the Price Level,” Journal of Monetary Economics, pp. 613-630.
Loyo, Eduardo [1997], “Going International with the Fiscal Theory of the Price Level,” unpublished manuscript, Harvard Kennedy School.

7) Optimizing Models with Nominal Rigidities

*Benigno, Pierpaolo and Gianluca Benigno (2008), “Exchange Rate Determination under Interest Rate Rules,” Journal of International Money and Finance, Volume 27, Issue 6, Pages 971-993.
*Obstfeld, Maurice and K. Rogoff [2000], ” New Direction For Stochastic Open Economy Models,” Journal of International Economics, 50, pp. 117-154.
Arsenau, David [2003] “Optimal Inflation in an Open Economy,” unpublished manuscript, Federal Reserve Board of Governors.
Benigno, Pierpaolo [2004], “Optimal Monetary Policy in a Currency Area”, Journal of International Economics,Volume 63, Issue 2, Pages 293-320.
Clarida, Richard, Jordi Galí and Mark Gertler [2001], “Optimal Monetary Policy in Open Versus Closed Economies: An Integrated Approach,” American Economic Review, Papers and Proceedings p. 248-252.
Gali, Jordi and Tommaso Monacelli [2005], “Monetary Policy and Exchange Rate Variability in a Small Open Economy,” Review of Economic Studies, Volume 72, Number 3.
Svensson, Lars [2000], “Open-Economy Inflation Targeting,” Journal of International Economics 50: 155-183.