Welcome to the Home Page of

Avivit Balas

Avivit Ballas- Baranes


Vitae and Bio

Assaf Razin and Friends (images)

Curriculum Vitae (word, pdf) , Bio (word, pdf, hebrew) Citations (google scholar), (SSRN abstracts, downloads). Amazon Books (link), MIT Press Books (link) Books (link)

  Lea Nikel

Lea Nikel

Haim Kiewe

Early work on Endogenous Growth


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

Content for New section Tag Goes Here

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

Meir Lazar



Review of Theories of Financial Crises (pdf) (word)(early draft) (slides)

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

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

Higher Education (Andreu Mas-Colell)

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

International Tax Equivalencies - Exposition

International Trade and International Migration

Milton Friedman (hebrew

  An Old Tree in Mount Tabor

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

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

Newspaper Articles

Calcalist (link)

globes (link)

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

Memories (link) Bio (link)

Ofer Razin Hall In Tel Aviv University,

Georgetown University's the Ofer Razin Lecture series

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

Ofer Razin Ph.D dissertation:published in -Economics of Globalization: Policy Perspectives From Public Economics, (1999) ,Assaf Razin And Efraim Sadka (eds)) (Publisher's Release) Cambridge University Press,(Real Exchange-Rate Misalignments and Growth, by Ofair Razin and Susan M. Collins)

Ancient Chinese Artifact (Fabricated?)


Videos for kids:

Simple Economic Concepts: Videos

(Assaf Razin's Hebrew Videos ) (youtube videos) (Welfare state, link)) (Migration and the welfare state)




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)



Migration (video)

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

Stockholm 1980:International Trade Group

Berlin 2004

Tel Aviv 2004

Munich Pinakotheka

Ottawa 2003


2 of my Tel Aviv University Colleagues a b

Seward (Lincoln's secretary of state) home (a, b)

Valleta (Malta) harbour 2011 (jpg)

Delfi, Greece 2015 (1, 2)

Warwick UK (link)

with Carl Christian von Weizsaecker (link)

Stanford 2001 WebPage

Pincas Litvinovsky


My family website

Iddo Razin


Bethy Rubinstein

Menashe Kadishman


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

Eitan Berglas School of Economics, 
Tel Aviv University,  Tel Aviv 69978 ISRAEL 
Office Telephone: 972-3-640-7303,  mobile: 972 58 7900033
Fax: 972-3-642-8074, or 972-3-640-9908 (Office) 972-3-641-4475 (Home), 
e-mail: razin@post.tau.ac.il,  
ar256@cornell.edu, Home Page: http://www.tau.ac.il/~razin

  Amos Keinan


Arie Lubin

Jewish Yom Kippur prayer --Kol Nidrei



New Book Manuscript:

Israel and the World Economy: The Power of Globalization

The state of Israel, founded in 1948, benefited immensely from the post-1945 globalization wave. Steadily reforming its financial and commercial institutions, and becoming increasingly globalized in trade, labor market, and finance, Israel became a member of the OECD; the accession took place in 2010. Currently, Israel’s is a thriving economy, integrated tightly into the world economy, Israel also feature a remarkable technological prowess. The Israeli economy is a remarkable development success story. A middle-income economy in the midst of a hyperinflation in the early 1980s, Israel grew into one of the most thriving economies in the world: and this despite the ongoing security challenges, that are most certainly a drain on its resources.
The book addresses several unprecedented economic episodes. They have rocked the global economy during the past several decades, and turned out to be inflection points in the development of Israel's economy. Some of the extraordinary events, external as well as domestic by origin, are:

1. The collapse of the Soviet Union, and the massive wave of high skill immigration to Israel which followed;

2. The Great Moderation, in inflation and employment fluctuations in the advanced economies, and the convergence of Israel’s inflation to the low world inflation rates;

3. The 2008 Global Financial Crisis (epi-centered in the US; spreading violently to Europe), and the surprising robust performance of the Israeli economy;

4.  The rise of the Asian markets, recently opened up to Israel’s exports, which became abundant source of outward foreign direct investments;

5.  The global information technology surge, and its spillovers to the emerging high-tech Israel;

6. The cascade of Palestinian uprisings stretching over the last few decades, their cyclical effects, as well as their long term uncertain economic implications;

7.  Brain drain of top talents, facilitated greatly by Israel’s advanced higher-education system, and the pro-skill bias in receiving-country immigration restrictions.

8. The rise in income inequality and social polarization in advanced economies with anti-globalization consequences.

The book endeavors to marry economic theory, empirical evidence, and narrative presentation. It does so in a way that is enlightening to the specialist, but remains digestible for the non-professional reader. It provides an opportunity for the reader to look through the rear mirror at the saga of Israel’s high-inflation, and the inflation conquest. To connect to the earlier literature, the book provides a review of books surveys of the earlier phases in the development of the economy of Israel. There could be at least two potential groups of readers: a. Policy makers, academic and non-academic (international institutions, banks, etc.) researchers and students interested in the Israeli Economy; b. Policy makers, academic and non-academic researches, interested in the effects of globalization; and, c. Advanced undergraduate, and graduate students in international macroeconomics courses.



Assaf Volume I: The first 70 years

A BIOGRAPHY in COMICS (link) -------------------------------

Assaf Razin's life 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 intellectual capitilism. Our hero persues a stelar carreer and personal acheivements while withstanding rather dramatic personal events.

Menashe Kadishman



E-books by Assaf Razin (link)

Jankel Adler



1. Understanding Global Financial Crises: An Emerging Paradigm,

by Assaf Razin


December 2014 (link)

The Book's Narrative (link)

Financial crises have some common storylines, among them bursting asset bubbles, bank failures, sharp tightening of credit, and downturn in trade. They are also different from one another. Some start with sudden reversal of international capital flows, others with domestic credit implosions. A challenge to economic research is to integrate common as well as disparate threads into a coherent analytical framework that is at the same time empirically testable. In Understanding Global Crises: an emerging paradigm, I offer a review of an emerging macroeconomic paradigm incorporating failure-prone financial intermediaries, that is consistent with the key features of recent global financial crises. To be self ccontained, the book also presents in a transparent way basic analytical elements of the theories of financial and monetary and currency crises.


1 Introduction

Part I Recent History of Financial Crises
2 The 1990s and the Early 2000s
3 The 2008 Global Crisis
4 The Crisis in the Euro -Zone
Part II Elements of the Theory of Financial Crises
5 Analytics of Financial Fragility of Banks
6 Analytics of Credit Frictions and Capital Market Freezes7 Analytics of Asset Bubbles and CrisesPart III Exchange Rates and Capital Flows
8 Analytics of Currency Crises
9 Foreign Investment and Debt: Information Asymmetry
10 Foreign Investment in the Presence of Liquidity ShocksPart IV An Emerging Macroeconomic Paradigm: Financial Intermediaries, and Credit Frictions
11 Inflation-Output Trade-off with Frictionl-Less CreditThe Benchmark Paradigm
12 Leveraging, De-lLeveraging and the Liquidity Trap
13 Amplification and Persistency of Shocks in Dynamic Macroeconomic Models

14. Epilogue


Assaf Razin provides here the definitive introduction and overview of the historical and analytical literatures on financial crises. Students new to the subject and specialists alike will appreciate the crystal clear exposition. Razin's book is the obvious starting point for all those concerned to understand risks to financial stability. And, given recent events, 'all those concerned' is likely to connote a very large number. (Barry Eichengreen, George C. Pardee and Helen N. Pardee Professor of Economics and Political Science, University of California, Berkeley).

The global financial crisis shook the foundations of macroeconomic theory: what had we missed? In this book, Professor Razin opens an illuminating door on the post-crisis world and painstakingly builds the foundations of a post-crisis paradigm. A must-read for anybody who wants to go beyond the stylized facts and begin to understand the why and how of global financial crises. Carlos A. Vegh, Fred H. Sanderson Professor of International Economics, Johns Hopkins University).

Assaf Razin has performed a real tour de force: blending historical study with rigorous theoretical analysis; presenting a vast and penetrating overview of the literature on financial crises; developing a new macroeconomic paradigm in which financial intermediaries play a major role, and in which asset and debt accumulation matters. All in one book. Thanks to Assaf Razin's book, doing macroeconomics is interesting again. (Paul De Grauwe, John Paulson Chair in European Political Economy, London School of Economics and Political Science).

Understanding Global Crises is an impressive book. The thoughtful and accessible analysis of the financial crises in the last 25 years in the first chapters will be extremely useful for the layperson interested in crises. The elegant modeling of the financial frictions predating these crises in the last chapters will also attract the expert. A must-read! (Graciela L. Kaminsky, Professor of Economics and International Affairs, George Washington University).

Book Review: Francesco Bianchi (link) Doyle (link)


2. Migration States and Welfare States: Why is America Different from Europe?


Assaf Razin and, Efraim Sadka

Palgrave-MacMillan Pivot, November 20, 2014 (link)


We argue that the looser federal nature of the economic union in the EU, relative to the U.S. (that is, the EU member states compete one against the other, whereas the US member states are constitutionally under a Federal regime which coordinates their policies); and the relatively more aged population contribute a great deal to our understanding of the welfare-state and migration policy differences (video).

    Book review: Ethan Ilzetzki, (2016) in the Israel Economic Review Vol. 14, No. 1 (2016), 129-133


3. Migration and the Welfare State
Political-Economy Policy Formation
Assaf Razin Efraim Sadka and Benjarung Suwankiri
MIT Press (2011)
A unified theoretical formal framework for studying how social benefits-immigration conflicts are resolved in an over-lapping generation setup, and a range of policy regimes. Topics include: The differences between free and policy-controlled migration, the effect of migration on the generosity of the welfare state, the effect of aging of the population, fiscal competition and competition over the skill mix of immigrants,and the dynamics of the political-economy policy formation concerning the interactions between the welfare state and migration.

Elisha Ben Yitzhak

Book review: Sharun W Mukand, Journal of Economic Literature 2012, 50(3), 791-794 (pdf).
Book Review: Johann Harnos and Hillel Rapoport, Israel Economic Review (IsER) Vol 11, No.1, April 2014
Book Review: Alexander Kemnitz J.Econ, 107: 191-193 (2012), Springer Werlag
Book Review: Mathias Sinning
Economic Record Volume 89, Issue 286, SEP 2013

4.  Foreign Direct Investment: Analysis of Aggregate Flows

(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.

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

Menase Kadishman

David Hendler

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

The international gathering (in the midst of the "uninviting" Intifada 2.0!!) in tel aviv.

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 ‘devaluation 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. 

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

6. The Decline of The Welfare State: Demography and Globalization-- 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

7. 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

8. A Theory of International Trade Under Uncertainty


Academic Press, Harcourt Brace Jovanovitch, 1978


Elhanan Helpman and Assaf Razin


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

Yosl Bergner

9. Fiscal Policies and the World Economy: Intertemporal Approach (MIT Press 1987 ( text)

(First Edition, 1987; Second Edition, 1993.)

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

10. Population Economics

Population Economics (MIT Press, 1995), with Efraim Sadka

Book download (link)

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

11. International Taxation in an Integrated World

(MIT Press, 1992), with Jacob Frenkel and Efraim Sadka

text, (pdf)

Book download (link)

12. Current-Account Sustainability


Gian Maria Milesi-Ferretti and Assaf Razin
(Princeton Studies in International Finance, No 81) Paperback (November 1996)
Princeton University, International Finance; ISBN: 0881652539


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

13. The Economy of Modern Israel

(University of Chicago Press, 1993), with Efraim Sadka


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

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) -

Taxation in the Global Economy by Assaf Razin and Joel Slemrod, The University of Chicago

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  
0. Introduction

The 2008 financial crisis (pdf)

Two Camps in Macroeconomics (ppt)

Euro Crisis (ppt)

Syllabus (doc, pdf)


I. International Financial Crises

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

Leverage Bubbles(pdf)

The Great Depression vs. The Current Crisis ( ppt )

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

1. First-Generation Currency Crises Models 

Fixed Exchange Rate under Interest Parity, first-generation crisis

2. First-Generation Crises Models

Fixed Exchange Rate Without Interest Parity,

3. Second-Generation Crises Models

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

4. Third-Generation Crises Models 

The balance-sheet effect in financial crisis,

balance shhet effect in a closed economy

(book review)

Financial Fragility (doc)

5. 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)

6. Informational Cascades and Rational Bubbles (link, Housing Bubble)

7. 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)

(ii) More on Currency Crises and Financial Crises

First-Generation Currency Crises Fixed Exchange Rate With and Without Interest Parity,

Currency Crises Models with Endogenous central bank policies

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

Balance-Sheet Crises Models 

The balance-sheet effect in financial crisis,

balance shhet effect in a closed economy

Evaluation of Exchange Rate Regimes in the presence of Liquidity Crises ( Econ Policy, currency pegs 2007 ) ( pdf ) ( word ) Exchange-Rate Regimes ( pdf )


Informational Cascades and Rational Bubbles ( link , Housing Bubble )

Bank Runs and Capital Flows: Flight for Quality

( link , slides ) Bank Runs, Capital Flow Reversals, Credit-Rating Crunches ( Figure )  Slides ( pdf , tex , slides )


II. Textbook Neo-Classical Open-economy Macroeconomics

1. Inflation 

Inflation and Money Growth, seigniorage,

2 Exchange Rate  

Flexible Exchange Rate


III. The Mundell-Fleming Model

Slides: The Mundell-Fleming Model 

IV. 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.

The OLD (Pre 2007-2009 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