김명현 교수

Abstract This paper examines whether U.S. monetary policy has different effects on young and old countries. I first empirically show that a contractionary U.S. monetary policy shock brings about a smaller fall in output and a greater rise in net exports in old countries using vector autoregressions (VARs), and that the shock leads to a larger fall in consumption and a smaller decrease in investment in old countries using the local projection method. I then construct a three‐country life‐cycle mo

Abstract US output is more strongly correlated with the output of energy-exporting countries than with that of energy-importing countries. I first document this empirical finding, then construct a three-country model in which countries’ different energy production and trade structures are considered. The three countries are the USA (an energy importer), a non-US energy importer, and an energy exporter. Consistent with the empirical findings, the model produces a higher output correlation between

I introduce commodities and countries¡¯ different commodity trade structures into an otherwise standard two-country model to analyze international business cycles between the U.S. and commodity-exporting countries. In the model, only the foreign country (the commodity-exporting country) produces commodities and exports them to the home country (the U.S., the commodity-importing country). The model produces international business cycle statistics that are closer to the data than a standard model.

Until the 1980s, standard models with two large open economies (i.e., the United States and Europe) provided plausible representations of the world economy. However, with the emergence of many developing countries since the 1990s, this approach no longer seems reasonable. In line with this change to the global economic environment, cross‐country output correlations between the United States and other countries have risen. This paper extends the standard two‐country model to many countries to sho