Welcome to the Home Page of


Smadar Eliasaf

My Curriculum Vitae (word, pdf) , My Bio (word, pdf, hebrew) My Comics' Bio(link), My Citations,My Working Papers (SSRN abstracts, downloads). My Amazon Books (link), My MIT Press Books (link) My entire list of books (link)

  Lea Nikel


Review of Theories of Financial Crises (slides)

Stock Prices and Crisis (pdf)

Tax Competion under Fiscal Externality(slides) (pdf)(zip)

Financial Crises 1990-2010 (pdf)

Information-efficiency tradeoff: A Test (pdf) (tex)

Composition of capital flows (presentation) pdf2011 (tex)(pdf)

Exchange Rate Regimes (pdf) (tex)

Migration cum Welfare State

MIT Press Monograph (pdf) (zip August 2010)(zip july 2010 )

Social Security and liberalized migration policy (tex, pdf)

Immigration into the welfare state presentation (zip) (data 1, data 2, data 3)(tex, pdf-jan09, pdf-April09) (ppt slides) (pdf slides)

Effects of Migration on Social Security: Demographic Balance and Political Balance (tex)

Effect of migration on the Welfare State (zip,tex, pdf, cepr, NBER, presentation)

Migration and the Welfare State: Dynamic Political-economy Theory (tex, pdf)

Immigration and Social Security (Sept2008.tex, September2008.pdf, tex, overview presentation, pdf, oldtex, oldpdf, slides2008, slides, Figure 1, Figure 2)

Ageing and Size of Redistributions: Role of Fiscal Leakages (tex)

Lea Nikel

Boon and Burden of Welfare Migration (text)

Jankel Adler

Haim Kiewe

Marc Chagall - Bride,Groom,Eiffel

Origins of  Endogenous Growth

1. Human Capital Accumulation and Endogenous Growth (Razin, Metroeconomica 1972)

2. Human Capital Accumulation and Technological Change (Razin,link, Review of Economic Studies 1973)

3.  Intergenerational Model of Population Growth (Razin and Ben-zion, American Economic Review 1975 (link)

4. Mystery of Growth (Book review, 2006, Helpman's Book Download (link, about the author))

Naftali Bezem

North-Holland Published Articles
NBER Working Papers (Write: Razin) 

Meir Lazar



Financial crisis: lessons (ppt, hebrew doc, hebrew pdf)

Eurozone crisis (ppt)

Macroeconomic thinking after the crisis (hebrew)

EBA Lecture on the Financial Crisis (ppt)

The Credit Crunch 2007-2009 (credit crunch 2007-2009)

Israel's higher education (pdf)

Israel's inflation and the aftermath (link)

Globalization and inflation (pdf)

Economic Growth (book Review)

Migration and the welfare state: Agenda for Research(text, references , abstract)

Wages in the Health Sector in Israel (pdf)

Israel Higher Education (IsER)

Monetary Policy and Potential Output
(word) Fiscal Policy (cesifo

Cuurent Account Sustainability (link)

Globalization and Disinflation (link)

Globalization and Society -"The 50th Anniversary of the "Rivoon L'Calcala" (link)

Migration and the Welfare State (PDF file, reference
Globalization, poverty and inequality (html)

FDI contribution to capital flows and investment in capacity (EASE13,HKIMR

Demography Issues (pdf)
Oil Shock (word) Global Disconnect--Physical and Informational Distance


Average vs Marginal Taxation

Marcel Janko



Capital  Flow Reversals-- NBER Research Profile-1

FDI Flows: A Critical View--
NBER Research Profile-2

Capital Flows and Growth (Hebrew

Nahum Gutman

Israel Economy: Inflation, Taxation, and Pensions

Israel High-inflation 1980s in newspaper op-ed columns:




Israel Economic Review (link)

A bit of Policy advice-- partial chronology ( link)

Pension Reform (doc)

Taxation: Report of the Tax Reform Committee ,

Israel Medical Doctors Wages (report, appendix)



Pincas Litvinovsky

Capital Mobility and International Taxation, 1(PDF File, figure), 2 (PDF File

International Tax Equivalencies - Exposition

International Trade and International Migration

Milton Friedman (hebrew

Tavor Mountain painted by
Abraham Zimmermann

Rivoon L'Calcala--historical view (link1, link 2)

Welfare state economics (hebrew slide 1, hebrew slide 2)

Newspaper Articles

Foreign Exchange market Intervention (link1) (link2)

The Marker (link)

Calcalist (link)

globes (link1, link2)

Politization of Education (link)

Tax Policy Turnaround (docx)

Defense Budget (link)

Israeli awakening (docx, pdf) (link)(1, 2, 3) (1990)

Selection from The Marker (link)

Two Macroeconomics Camps (Calcalist, 2010)

Treasury Secretary circa 2009 (Haaretz)

The Kibbutz Pension Crisis (calcalist) (video)

Brain Drain (html)
 A Tax on Returning Israelies

Finance Minister,more

The Spring 2003 Economic Program

An Economic Road Map

The longest recession

Privatizing a Kibbutz (word, stockmarket, article) (quasi-social security)

Privatized Medical Service


New Bank-of-Israel Law (doc

Bank of Israel and Accountants behind  a "Nominal Reform",link

New Law About Consumer Creditworthiness Information, link

Globalization and the Arab Sector

Emerging Palestinian economy? (word, new book, WB Report, a 2004 book)

Newspaper clips (link)

Leo Roth

Ofer Razin, My Late Son

About Ofer

Bio (hebrew)

Ph.D dissertation a special chapter in

Assaf Razin And Efraim Sadka (eds)) -Economics of Globalization: Policy Perspectives From Public Economics, (1999) , (Publisher's Release) Cambridge University Press, with from Ofair Razin's PH.D dissertationReal Exchange-Rate Misalignments and Growth, by Ofair Razin and Susan M. Collins

2. Ofer Razin Hall In Tel Aviv University,

3. Georgetown University Lecture series

The 2003 Lecture, 1, 2, 3, 4,  page 12 The 2007 Award Ceremony, the speaker

Ancient Chinese Artifact (Fabricated?)


Videos for kids:

Simple Economic Concepts: Videos

(Assaf Razin's Hebrew Videos ) (youtube videos) (Welfare state, link))




Neoclassical approach (pdf)
International Indicators (bop, ER, etc)
Introduction, Krugman-Obstfeld-ch12, Krugman-Obstfeld-ch13
Balance-of-Payments Accounting (ppt)
1.Flexible Exchange Rate: Exogenous Output, Krugman-Obstfeld-ch14
2.Flexible Exchange Rate: Endogenous Output, Krugman-Obstfeld--ch15Krugman-Obstfeld Ch 15Krugman-Obstfeld Ch 15, krugmanobstfeldch16.pp
3.Fixed Exchange Rate,krugmanobstfeldch17.pp , Impossible Trinity
4.Flexible vs Fixed Exchange Rate Systems, Krugman-Obstfeld-ch19
5. International Debt Crisis:a,
  b, c, d
6. Balance of Payments Dynamics

7. ppp and exchange rates in the short and the long run (pdf)

7. Why the Dollar Falls: An Intertemporal Adjustment (word)

7. Optimum Currency Areas, Krugman-Obstfeld-ch20 Krugman on EMU (text, slides)

8. International Capital Markets (Krugman-Obstfeld ch 21, Appendix)

9. Financial Crises, Krugman-Obstfeld-ch22

Homework1, Homework2, Homework 3,

10. The International Monetary System

 11. Optimum Currency Areas

12. Developing Countries: Crises and Reforms

 13. The Global Capital Markets , International capital market (Krugman-Obstfeld Ch 21 ) (The US Deficit)



1.The Ricardian Model with Two Goods,Krugman-Obstfeld-ch2
2. The Ricardian Model with a Continuum of Goods:a,
3.Specific Factors and Income Distribution, Krugman-obstfeld-ch3

3.Relative Supply of Factors and   Comparative Advantage,a,
b , c, Krugman-obstfeld-ch4
4.Economies of Scale and International Trade,a,
b , Krugman-obstfeld-ch6
5.International Trade Policy, a,
b, Krugman-Obstfeld-ch8
6. Optimum tariff , Krugman-Obstfeld-ch9

7. International Debt Crisis:a,
  b, c,

Globalization (word)

Doha Trade Round (Doha Trade Round) (Farm Subsidies)
  (Boeing vs Airbus, Airbus vs Boeing)

Homework1,Homework2, Homework3,Homework4,Homework5

Homework 6

7. International Factor Movements

8.Trade Policies: Developing Countries





Menashe Kadishman

II. A Graduate Course in  International Trade and Foreign Investment


i. International Trade

1. Introduction

2. Intra-industry Heterogeneity with Fixed Costs of Exporting: The Melitz Model
(2003) (notes)

3. Intra-industry Heterogeneity and Bertrand Competition: Bernard,
Eaton, Jensen, and Kortum (2003),
a. The Eaton-Kortum Model (notes1, notes2)
b. Sources of Comparative Advantage
(notes, slides) Trade (text),
c. The Alvarez-Lucas Calibration (notes)
4. Gene M. Grossman and Esteban Rossi-Hansberg Outsourcing Model (notes)

5. complementarity between trade in goods and trade in assets (ppt)

ii. Foreign Direct Investment

1. Liquidity Crunch and FDI (notes)
2. Heckman Econometrics in the Razin-Sadka FDI Book(text) (notes)
3. Tax and Productivity as Drivers of FDI (notes, powerpoint, pdf)
4. Tax Competition and FDI (Notes, slides)
This part is Based on the Razin - Sadka Book: Foreign Direct Investment: Analysis of Aggregate Flows
(Princeton University Press, 2007)

5. Fire Sale FDI (slides)

iii. Dynamics of Capital Flows

1. Introduction
a. Complete vs. Incomplete Capital Markets (Helpman and Razin Ch 3)
b. Dynamic model of Trade in Goods and Assets (Helpman and Razin Ch 11)

2. New Models of Capital Flows

a. The Pavlova and Rigobon Model
(paper, slides)
b. Devereux and Southerland Model (notes, slides)
c. The Tille and van Wincoop Model (paper, slides)
d. The Caballero and Krishnamurty Micotrade Model: Flight for Quality Model (notes, slides)

e. Trade and Financial Frictions (Antras and Caballero)

III. The 1990s Graduate Course in International Trade
1.Gains from Trade

2.Factor Proportions and the Structure of Trade (ppt)
3.Complete and Incomplete Capital Markets
4.Dynamics of International Trade
5.Lobbying and Tariffs
6.Trade in Capital Goods
7.International Migration
8.Balance Sheets Effects and the Real Exchange Rate
9.Home-Bias Portfolio and the Saving-Investment Correlations

10. The Eaton-Kortum Model (pdf) (word), Sources of Comparative Advantage (slides, text) Trade (pdf)

11. The Alvarez-Lucas Calibration (doc)

12. Pol Antras Lecture Notes

13. Gene M. Grossman and
Esteban Rossi-Hansberg notes (outsourcing, slides)

Naftali Bezem





Karl Marx, Friedriech Engels, and Me Nelson Mandela and Me Mt. Tabor 2004  

Berlin 2004 Tel Aviv 2004 Munich Pinakotheka

Ottawa 2003 NYU 2 of my Tel Aviv University Colleagues a b

Seward (Lincoln's secretary of state) home (a, b) Valleta (Malta) harbour 2011 (jpg)

Theodore Herzel's Grandmother and Me (docx)

Looking at the confluence of Sava river and Danube inside the city of Belgrade, 2014 (docx)

Lenin, Stalin, And Me (docx)

Stanford 2001 WebPage

Pincas Litvinovsky


My family website

Young Iddo Razin (at age 4)

Mount Tabor : Old Tree ( Prophet Deborah's biblical times?), and Old Man

  Menashe Kadishman: flock of ship;
Israel Painters (Kol Nidrei)



Cornell University

Department of Economics

Ithaca, New York, 14853, USA




Department of Economics 
Tel Aviv University 
Tel Aviv 69978 
Office Telephone: 972-3-640-7303 
Fax: 972-3-642-8074 or 972-3-640-9908 (O) 
972-3-641-4475 (H) 
e-mail: razin@post.tau.ac.il
Home Page: http://www.tau.ac.il/~razin


Research Affiliations

NBER Research Associate; CEPR Reseasrch Fellow; 
CES-ifo Research Fellow.


  Amos Keinan


Arie Lubin

  Yosl Bergner


List of my books (link)

The Ultimate Biography in comics style --- Assaf Vol I: The first 70 years (link)

The stroy is one of extremes. It follows Assaf rom the Kibutz to the city, from Israel to different parts of the world, from his childhood in the nursery bed of socialism to the Economics department in Chicago university, the cradle of capitilism. Our hero persues a stelar carreer and personal acheivements while withstanding dramatic personal events.

A Birthday Present:

Economic Policy in the International Economy: Essays in Honor of Assaf Razin 

60th birthday party guests

Edited by Elhanan Helpman, Efraim Sadka   (Cambridge University Press, 2002)

Part I. Financial Issues in Open Economies: Theory: 1. Crises: the next generation? Paul Krugman;(link) 2. Solutions to the Ĺdevaluation bias': some preventive measures to defend fixed exchange rates against self-fulfilling attacks Chi-Wa Yuen; 3. Growth enhancing effects of bailout guarantees Aaron Tornell; 4. Risk and exchange rates Maurice Obstfeld and Kenneth S. Rogoff; Part II. Financial Issues in Open Economies: Empirics: 5. Economic integration, industrial specialization, and the asymmetry of macroeconomic fluctuations Sebnem Kalemli-Ozcan, Bent E. Sorenson and Oved Yosha; 6. Uncovered interest parity in crisis: the interest rate defense in the 1990s Robert P. Flood and Andrew K. Rose; 7. When does capital account liberalization help more than it hurts? Carlos Arteta, Barry Eichengreen and Charles Wyplosz; 8. Sources of inflation in developing countries Prakash Loungani and Phillip Swagel; Part III. Economic Growth: Theory and Empirics: 9. Growth effects and the cost of business cycles Gadi Barlevy; 10. Explaining economic growth Yair Mundlak; Part IV. Public Economies: 11. Simulating fundamental tax reform in the United States David Altig, Alan J. Auerbach, Laurence J. Kotlikoff, Kent A. Smetters and Jan Walliser; 12. The international macroeconomics of taxation and the case against European tax harmonization Enrique G. Mendoza; 13. Home bias in portfolios and taxation of asset income Roger H. Gordon and Vitor Gaspar; 14. Social dumping in the transformation process; Part V. Political Economy: 15. Do political institutions shape economic policy? Torsten Persson. 

Moshe Propes

Review "This is a superb collection of 15 theoretical and empirical papers on international finance, economic growth, domestic and international aspects of tax reform, and the impact of political institutions on economic policy...No economist can leaf through this book without finding something new and exciting." Peter Kenen, Princeton University "This is a volume that fittingly reflects the breadth of Assaf Razin's contributions to economics. From public finance to trade, from growth to political economy, few contemporary economists have ranged as widely (and as wisely) as Assaf Razin. The editors have assembled a first-rate group of authors and articles to pay him homage." Dani Rodrik, Harvard University "Substantial changes in the international economy increasingly warrant a solid economic analysis and strong policy considerations. This great book meets the challenge by providing an excellent selection of articles dealing in a timely manner with frontier issues in finance, growth, taxation and political institutions in a global context. All contributions are original, well conceived and executed. The volume deserves a wide readership among economists, advanced students and those policy makers who seek a deep understanding of the international economy. Klaus F. Zimmermann, IZA and University of Bonn, Germany "This first-rate collection of essays is a clear indication of the very high reputation Assaf Razin enjoys in our profession. Written by top experts in the field, the contributions included in this book are both extremely topical and based on frontier research methods. They provide a wealth of insights on a very wide range of important policy issues." Mathias Dewatripont, Universite Libre de Bruxelles and Centre for Economic Policy Research , London "The present volume contains significant contributions at the frontier of research in international economics, growth, and public economics by leading. By combining theoretical rigor with careful examination of the data, it provides a perfect example of the kind of research that should guide economic policy, as well as a most suitable celebration of Assaf Razinas contributions to economic science over the years." Jordi Gali, Universitat Pompeu Fabra, Barcelona, Spain "Few economists satisfy the twin criteria of being both wide and deep. Assaf Razin is one such scholar, and this collection of fifteen essays in his honor attempts, successfully, to mirror these characteristics. Economic growth, fiscal policy, taxation issues and political economy all receive careful attention, with all analyzed in the modern setting in which international trade and finance create so many links among nations. Helpman and Sadka have indeed honored their colleague." Ronald Jones, University of Rochester Book Description This book contains fifteen major essays on international economics. The authors investigate five principal themes: theory, and empirics, of financial issues in open economies; economic growth; public economies; and political economy. Written to honor Professor Assaf Razin of Tel Aviv and Cornell Universities on the occasion of his sixtieth birthday, the essays pay close attention to policy issues as well as formal analysis. The contributors include renowned specialists in international economics based in North America, Europe, Israel, and China. This volume of cutting edge research will be of interest to scholars, policy makers, and advanced students alike.

The book Conference (IMF Survey, April 16, 2001, page 129) 

MIT Press books by Assaf Razin

E-books by Assaf Razin (link)

Yochanan Simon


1. New: Understanding Global Crises: An Emerging Paradigm , MIT Press, forthcoming October 2014.

2. Migration and the Welfare State
Political-Economy Policy Formation
by Assaf Razin, Efraim Sadka and Benjarung Suwankiri
MIT Press, 2011
A unified formal framework for studying how social benefits-immigration conflicts are resolved in a range of policy regimes. Topics include: an empirical assesment of free vs. policy-controlled migration and the generosity of the welfare state, tax competition and competition over the skill mix of immigrants, dynamics of political economy policy formation, and survey of literature.

Book review: Sharun W Mukand, Journal of Economic Literature 2012, 50(3), 791-794 (pdf).

Book Review: Alexander Kemnitz J.Econ, 2012, Springer Werlag

book review: Mathias Sinning Economic Record Volume 89, Issue 286 , SEP 2013

book review: Johann Harnoss and Hillel Rapoport, Israel Economic Review 2014 (word)

3.  Foreign Direct Investment: Analysis of Aggregate Flows

by Assaf Razin and Efraim Sadka

(Princeton University Press, 2007)



Book Reviews:
K.P. Kimbrough, Foreign Direct Investment: Analysis of Aggregate Flows by Assaf Razin and Efraim Sadka. International Review of Economics and Finance 2009. http://www.arts.cornell.edu/econ/arazin/kimbroughFDIBOOKreview.pdf

Kathrin Russ, The New Theory of Foreign Direct Investment (Review of Multinational Firms and the Theory of International Trade by Jim Markusen and Foreign Direct Investment: A Theory of Aggregate Flows by Assaf Razin and Efraim Sadka, for the journal International Finance, 2009 text

Laura Alfaro, Review of Foreign Direct Investment: Analysis of Aggregate Flows, Journal of Economic Literature, March 2009, text.

Sebnem Kalemli-Ozcan, Book Review, Israel Economic Review,Vol 9, No 2 (2012), 1-3 (text)

David Hendler


4. The Decline of The Welfare State: Demography and Globalization

by Assaf Razin and Efraim Sadka

- MIT Press, 2004

(Hebrew Slide, English Slide)

Book Download (link)

Book Reviews:
Ortega F ECONOMICS OF TRANSITION 14 (2): 413-415 2006
Kimbrough K JOURNAL OF ECONOMIC LITERATURE 44 (1): 184-186 MAR 2006
Beltrametti L JOURNAL OF ECONOMICS 87 (2): 195-197 MAR 2006
Hicks, Alex, Governance, An International Journal of Policy and Administration, Vol 20, Issue 2, pp. 359-71, 2007
Nicole Wolfe, Journal of World System Research, Vol 12, Num 2 ( December 2006)
Catia Montanga Economica, Volume 74, Issue 296, Novemember 2007

5. Labor, Capital and Finance: International Flows
Assaf Razin and Efraim Sadka

Cambridge University Press, 2002

Book download

(pdf) (text)


Book Reviews:
Wright MLJ JOURNAL OF ECONOMIC LITERATURE 42 (2): 524-525 JUN 2004 (text)
Lane P WORLD ECONOMY 25 (10): 1525-1525 NOV 2002 (Word File)

Publisher's release ,JEL, Amazon.com
Table of Contents
Chapter 1, (Figures:1,2
Chapter 6
Chapter 7, (Figures:,1,2)


Haim Kiewe

6. A Theory of International Trade Under Uncertainty

by Elhanan Helpman and Assaf Razin

Harcourt Brace Jovanovitch, Academic Press, 1978



Book Reviews:
NEARY JP ECONOMICA 48 (189): 101-102 1981
HITIRIS T ECONOMIC JOURNAL 90 (357): 185-187 1980

Menashe Kadishman


7. Fiscal Policies and the World Economy: Intertemporal Approach

by, Jacob Frenkel and Assaf Razin

MIT Press, 1987 ( pdf)

(First Edition, 1987; Second Edition, 1993, Third edition, 1996)

Fiscal Policies and Growth in the World Economy (MIT Press, Third Edition, 1996),
Preface, Contents,
The Mundell-Fleming Model:
Chapter 4, text
The Dynamics of the Current Account:
Chapter7, text.
Growth in the Global Economy:
Chapter 12, Chapter 13, Chapter 14, Chapter 15

Book download (link)

Book Reviews:

first edition (1987)
Anon JOURNAL OF MACROECONOMICS 19 (3): 630-630 SUM 1997
Second Edition (1992):
WRENLEWIS S WORLD ECONOMY 17 (5): 782-782 SEP 1994

8. Population Economics

by Assaf Razin and Efraim Sadka

Population Economics

MIT Press, 1995

London's bookstore 2013

Book download (link)

Book Reviews:
Jackson WA ECONOMIC JOURNAL 106 (439): 1812-1813 NOV 1996

9. International Taxation in an Integrated World

by Jacob Frenkel, Assaf Razin, and Efraim Sadka
MIT Press, 1992

text, (pdf)

Book download (link)

10. Current-Account Sustainability

by Gian Maria Milesi-Ferretti and Assaf Razin

Princeton University Press

(Princeton Studies in International Finance, No 81) Paperback (November 1996)
Princeton University, International Finance; ISBN: 0881652539

Text (link)

see also Currency Crises
PR Krugman (ed.) 2000, Book download (link)

11. The Economy of Modern Israel

by Assaf Razin and Efraim Sadka

University of Chicago Press, 1993


Yohanan Simon


Social Security Reform : Financial and Political Issues in International Perspective
by Robin Brooks (Editor), Assaf Razin (Editor)
Cambridge University Press 2006

Preface, Table of contents, Introduction, authors

(Table of Contents)

Book Reviews:
SHAUN L. YOW, Journal of Pension Economics 6:01, 2007. http://journals.cambridge.org/download.php?file=%2FPEF%2FPEF6_01%2FS1474747206282842a.pdf&code=262592bf0459172aff41ae708a1ef5e1
Taxation in the Global Economy (National Bureau of Economic Research Project Report)
by Joel Slemrod (Editor), Assaf Razin (Editor) ( Paperback - February 1, 1992) Book Download
Capital Mobility : The Impact on Consumption, Investment and Growth
by Leonardo Leiderman (Editor), Assaf Razin (Editor) ( Cambridge University Press, 1994)

International Trade and Trade Policy
by Elhanan Helpman (Editor), Assaf Razin (Editor) ( MIT Press, 1991)

Book download (link)

International Finance and Financial Crises : Essays in Honor of Robert P. Flood, Jr, Edited by Peter Isard, Assaf Razin, and Andy Rose , Kluwer Academic Publishers (2000)

Optimum Currency Areas: New Analytical and Policy Developments , Edited by Mario Blejer, Leonardo Leiderman and Assaf Razin, IMF, 1997; 
A pre-Nobel Award Festschrift for Robert Mundell's "optimum currency area" paper

Book download (link)

Capital Mobility: The Impact on Consumption, Investment and Growth by Leonardo Leiderman and Assaf Razin ( Paperback)

The Economics of Globalization: Policy Perspectives from Public Economics by Assaf Razin and Efraim Sadka ( Paperback) -

Development in an Inflationary World by M. June Flanders/ Assaf Razin ( Paperback - 1981)


I.  A Graduate Course in International Macroeconomics: Integrating International Macroeconomics and Financial Crises  

The 2008 financial crisis (pdf)

Two Camps in Macroeconomics (ppt)

Euro Crisis (ppt)

The Great Depression vs. The Current Crisis ( ppt )

Currency and Financial Crises of the 1990s and 2000s docx

Syllabus (doc, pdf)


I. Financial Fragility and Financial Crises

Review of Theories of Financial Crises (draft) (slides)

Bank Runs and Capital Flows 

Caballero-Krishnamurty: Flight for Quality (link, Burnside slides)

Bank Runs, Capital Flow Reversals, Credit-Rating Crunches (Figure

Slides (pdf, tex) Allen and Gale (slides)

Leverage Bubbles(pdf)

Financial Fragility (doc)

II. Foreign Currency Crises

1. First-Generation Currency Crises Models 

Fixed Exchange Rate under Interest Parity,

Fixed Exchange Rate Without Interest Parity,

2. Second-Generation Crises Models

Unique equilibrium? Game  Theory, Banking/Debt Crises (ppt), notes: 1, 2, 3, 4, 6, 7, 8

3. Third-Generation Crises Models 

The balance-sheet effect in financial crisis,

balance shhet effect in a closed economy

(book review)

4. Empirical Evaluation of Exchange Rate Regimes (Econ Policy, currency pegs 2007)(pdf) (word) (Non linearity table) (presentation China) (Box 1: tex, pdf) (Box 2: tex, pdf) (Figure) (Revised Tables and Figures) (tex)(pdf) (slide1) (slide2) (Figures and Tables)

Exchange-Rate Regimes (pdf)


III. Neo-Classical Open-economy Macroeconomics

1. Inflation 

Inflation and Money Growth, seigniorage,

2 Exchange Rate  

Flexible Exchange Rate


VI. The Mundell-Fleming Model

Slides: The Mundell-Fleming Model 

V. The New-Keynesian Macroeconomics  


The Flexible Price Benchmark

Aggregate Supply Under Price Rigidity

Equilibrium under Flexible and Rigid Prices

Utility-based loss function (Preliminaries )

Utility-Based loss function: Globalization

Liquidity trap and delevaraging (link)


Krugman on liquidity trap

Liquidity trap

The Liquidity Trap and Expectations, more

Fiscal Policy under liquidity trap

Geneal Equilibrium and Interest Rule ( doc)

Naive vs Quadratic LQoptimazation ( doc )

Linear Quadratic Approximation ( pdf )

Homeworks: 1 , 2 , 3

globalization and inflation ( Slides, pdf , word )

Jordi Gali's notes( 1 , 2 , 3 , 4 , 5 , 6 , 7 )

VI. The Dynamics of the current- and capital- account of the balance of payments 

(a) Consumption-Smoothing current account balance Dynamics ( PPT )

(b) Dynamics of Savings in a small open economy ,

(c) Current Account Stochastic Dynamics,

(d) Portfolio View of Capital Flows ( slides )


Home works

Basics: 1 , 2 ,   3 ; New Keynesian Macro: Homeworks: 1 , 2 , 3 , 4 ( word ), 5 ( word ), 6 ( word ) , 7 ( word ); and More Home works.

Pre-2008-crisis course

Neo-Classical Open-economy Macroeconomics

1. Inflation 

Inflation and Money Growth, seigniorage,

2 Exchange Rate  

Flexible Exchange Rate

3. Current Account Dynamics 

(a) Consumption-Smoothing current account balance Dynamics (PPT)

(b) Dynamics of Savings in a small open economy,

(c) Current Account Stochastic Dynamics,

(d) Portfolio View

(e) Capital Flows (slides)

7. A Stylized Example of Time Inconsistency

Inflation bias

(iii) The Traditional Model

1.  Mundell-Fleming Macroeconomics: 

The Mundell-Fleming Model 

(iv) New-Keynesian Macroeconomics 

The Flexible Price Benchmark

Aggregate Supply Under Price Rigidity

Equilibrium under Flexible and Rigid Prices

Utility-based loss function (Preliminaries)

Utility-Based loss function: Globalization


Krugman on liquidity trap

Liquidity trap

The Liquidity Trap and Expectations, more

Fiscal Policy under liquidity trap

Geneal Equilibrium and Interest Rule (doc)

Naive vs Quadratic LQoptimazation (doc)

Linear Quadratic Approximation (pdf)

Homeworks: 1, 2, 3

globalization and inflation (Slides, pdf, word)

Jordi Gali's notes(1, 2, 3, 4, 5, 6, 7 )

Miscellaneous issues

1. Heckman Econometrics in FDI Book (pdf) (Probit and GMM)

2. Open Economy , Pass Through from Exchange Rates to Prices 


3. Output-Inflation Tradeoffs in the Open Economy: 

Phillips Curve

4. Bank Runs (pdf)

5. Devereux-Sutherland Capital flows model (slides)

6. Diagramatical Exposition (pdf)

2.7. VAR analysis of currency regimes (pptx)

Special Topics

1. International Economics Puzzles--the Obstfeld and Rogoff Approach

2. Macroeconomic Moral Hazard (tex)

3.. Economic Growth in the Open Economy

4. Trade shares and international portfolio shares (link)

Homeworks: Tel Aviv 2005: 1, 2, 3, 4

4. Time-Varying Risk, Interest Rates, and Exchange Rates
in General Equilibrium

Home works

Basics: 1, 2,   3; New Keynesian Macro: Homeworks: 1, 2, 3, Homework 4 (word), Homework 5 (word), Homework 6 (word), Homework 7 (word).

Ruth Schloss