Social and Behavioral Sciences | Open Access Articles

Is Trade Liberalization An Important Cause Of Increasing U.S. Wage Inequality? The Interaction Of Theory And Policy, John B. Davis Dec 1999

Is Trade Liberalization An Important Cause Of Increasing U.S. Wage Inequality? The Interaction Of Theory And Policy, John B. Davis

Economics Faculty Research and Publications

The majority of mainstream economists believe that globalization and trade liberalization have had a minor role in increasing U.S. wage inequality. A minority argues that capital mobility and outsourcing indicate a larger effect. This paper first surveys these views, and then argues that how we understand the policy consequences of trade liberalization helps determine the character of our analysis of the issue itself. Thus, a shift in policy perspective, to consider the "equity costs" of trade liberalization in terms of eroded U.S. labor market institutions, produces a larger framework for analyzing the consequences of globalization and trade liberalization than is …

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The Nonstationarity Of Money And Prices In Interdependent Economies, Joseph Daniels, David D. Vanhoose Feb 1999

The Nonstationarity Of Money And Prices In Interdependent Economies, Joseph Daniels, David D. Vanhoose

Economics Faculty Research and Publications

In most nations, paths of monetary aggregates and prices consistently depart from stationary trends. This paper shows that this is a fundamental implication when monetary authorities of interdependent countries seek to smooth their home output and prices in the presence of incomplete world output-market integration and structural asymmetries. Using a two-country model with interdependent output supply schedules, we show that this conclusion holds whether the exchange rate floats or is fixed. It also holds if monetary policies are coordinated. Therefore, optimal monetary policy choices by central banks yield stationary paths for money and prices only under very specific conditions.

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The Asian Currency Crisis: Origins, Lessons, And Future Outlook, Abdur Chowdhury Feb 1999

The Asian Currency Crisis: Origins, Lessons, And Future Outlook, Abdur Chowdhury

Economics Faculty Research and Publications

What started in the summer of 1997 as a regional economic and financial crisis in East and Southeast Asia had developed into a global financial crisis within the span of a year. This crisis followed the crisis in the European Monetary System in 1992-3 and the Mexican peso crisis in 1994-5. However, unlike the previous two crises, the scale and depth of the Asian crisis surprised everyone. Obvious reason for this is East and Southeast Asia's track record of economic success. Since the 1960s, no other group of countries in the world has produced more rapid economic growth or such …

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G8 Summits And Compliance, Ella Kokotsis, Joseph Daniels Jan 1999