International Real Business Cycles
Working Paper No. 06-W17
Mario J. Crucini
ABSTRACT [article]
This paper is a non-technical review of research developments in the international real business cycle literature. International
business cycle facts are summarize with particular attention to the
sources of output variance from the expenditure side of the NIPA and the
production side, using a familiar neoclassical production function.
Theoretical developments focus on the how consumption smoothing and
investment dynamics shape the current account; the search for sources and
propagation mechanisms of international business cycle comovement and key
facets of relative price determination (the real exchange rate and the
terms of trade).
Keywords and Phrases: International business cycles, current account,
real exchange rates.
JEL Classification Numbers: A1, F4, E3