International-Finance

Alvaro Garcia-Marin · Santiago Justel · Tim Schmidt-Eisenlohr

This paper provides a theory and evidence for why firms with higher markups extend more trade credit, focusing on a financing cost channel that is distinct from existing competition-based …

Pierre-Olivier Gourinchas · Walker Ray · Dimitri Vayanos

Layer 1 — Core Argument The paper develops a two-country preferred-habitat model in which currency and bond markets are populated by different investor clienteles — currency traders with price-elastic …

Gaurav Khanna · Emir Murathanoglu · Caroline Theoharides · Dean Yang

Layer 1 — Overview Research Question This paper asks how persistent increases in international migrant income prospects affect long-run economic development in migrant-origin areas. The central …

Marco Errico · Danial Lashkari

Errico and Lashkari address two intertwined problems in the measurement of aggregate price indices: how to account for quality change and variety entry/exit when the demand system is not CES, and how …

Bruno Pellegrino · Enrico Spolaore · Romain Wacziarg

Overview Research Question. Why do observed international investment positions and cross-country differences in rates of return to capital fail to conform to a frictionless capital-market benchmark? …

Farid Farrokhi · Ahmad Lashkaripour

Overview Farrokhi and Lashkaripour (2025) study the interaction between trade policy and climate change. The central research question is whether and how countries can use trade policy — specifically …

Julien Bengui · Louphou Coulibaly

Layer 1 — Overview Research Question Bengui and Coulibaly ask whether the pattern of capital flows observed during the 2021–2023 global monetary tightening cycle — whereby capital flowed from …

Francesco Ferrante · Nils Gornemann

Layer 1 — Overview Research Question Ferrante and Gornemann study the aggregate and redistributive effects of currency devaluations in emerging market economies, focusing on a feature that prior …

Michael McLeay · Silvana Tenreyro

Layer 1 — Summary An emerging view in international macroeconomics contends that dollar invoicing of exports renders monetary policy ineffective for non-U.S. countries: because export prices are …

Alessandro Moro · Valerio Nispi Landi

Moro and Nispi Landi develop FraNK, a multi-country New Keynesian model designed to study geoeconomic fragmentation — defined, following Aiyar et al. (2023), as a policy-driven reversal of economic …

Carlos Arteta · Steven Kamin · Franz U. Ruch

Layer 1 — Overview Research Question This paper examines how the effects of rising U.S. interest rates on emerging market and developing economies (EMDEs) depend on the underlying source of the …

Sergio Villalvazo

Layer 1 — Overview Research Question This paper studies the cross-sectional dimension of Fisher’s (1933) debt-deflation mechanism as it operates during Sudden Stop crises — episodes …

Mauricio Barbosa-Alves · Javier Bianchi · César Sosa-Padilla

The paper extends the Cole-Kehoe (2000) sovereign rollover crisis model to include international reserves and derives the joint optimal management of sovereign debt and reserves in a small open …

Mathilde Muñoz

Overview Research Question. This paper asks whether differences in labor market regulations — specifically payroll taxes and minimum wages — shape countries’ comparative advantage in the …

Saleem Bahaj · Ricardo Reis

This paper asks how a currency achieves international status — moving from zero to positive cross-border use — and whether deliberate central bank policy can accelerate that transition. The authors …

Chun-Che Chi

Layer 1 — Overview Research Question This paper studies how the lender structure of external debt — specifically, the degree to which a borrowing country’s external debt is concentrated among a …

Niko Jaakkola · Florian Wagener

This paper by Jaakkola and Wagener addresses a long-standing open problem in the theory of differential games: how to make Markov-perfect equilibria (MPE) well-defined when best-response policy …

Árpád Ábrahám · Eva Carceles-Poveda · Yan Liu · Ramon Marimon

Layer 1 — Overview Research Question This paper asks how to optimally design a Financial Stability Fund (Fund) for a union of sovereign countries that must simultaneously (i) prevent sovereign …

Oleg Itskhoki · Dmitry Mukhin

Layer 1 — Core Argument Itskhoki and Mukhin develop a tractable open-economy model with financial market segmentation — in which only the government sector (including state banks and exporting firms) …

Masao Fukui · Emi Nakamura · Jón Steinsson

Layer 1 — Overview Research Question How does an exchange rate depreciation causally affect macroeconomic outcomes? The paper asks whether depreciations are expansionary or contractionary, and through …

Felipe Saffie · Liliana Varela · Kei-Mu Yi

Using the 2001 Hungarian capital account liberalization as a quasi-natural experiment and census-level firm data covering the entire economy (1992–2008), the paper identifies two channels through …

Karlye Dilts Stedman · Andrew Hanson

Layer 1 — Overview Research Question The paper asks why unconventional monetary policy (UMP) spillovers from the European Central Bank (ECB) to the U.S. Treasury yield curve vary so substantially over …