DP8218 International Macro-Finance
|Author(s):||Anna Pavlova, Roberto Rigobon|
|Publication Date:||January 2011|
|Keyword(s):||asset pricing, equity prices, international macroeconomics, international portfolios|
|JEL(s):||F31, F36, G12, G15|
|Programme Areas:||International Macroeconomics, Financial Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=8218|
International macro-finance is a new area of open economy macroeconomics that brings portfolio choice and asset pricing considerations into models of international macroeconomics. The importance of these considerations--typically relegated to Finance and largely overlooked in traditional macroeconomics--for the international macroeconomy have been underscored by a series of recent financial crises and by unprecedented global imbalances. In this paper, we survey recent developments in this area, primarily on the theoretical front. We also suggest several promising directions for future research.