Three Essays in International Macroeconomics

• Main Author: Nanovsky, Simeon Boyanov
• Format: Others
• Published: UKnowledge 2015
• Subjects: Capital controls; the Taylor rule; optimum currency area; monetary independence; gravity model; oil price; International Economics
• Online Access: http://uknowledge.uky.edu/economics_etds/22; http://uknowledge.uky.edu/cgi/viewcontent.cgi?article=1021&context=economics_etds

This dissertation spans topics related to global trade, oil prices, optimum currency areas, the eurozone, monetary independence, capital controls and the international monetary policy trilemma. It consists of four chapters and three essays. Chapter one provides a brief summary of all three essays. Chapter two investigates the impact of oil prices on global trade. It is concluded that when oil prices increase, countries start trading relatively more with their neighbors. As an application this chapter provides a new estimate of the eurozone effect on trade. Chapter three continues to study the eurozone and asks whether it is an optimum currency area using the member countries’ desired monetary policies. It is concluded that Greece, Spain, and Ireland have desired policies that are the least compatible with the common euro policy and are therefore the least likely to have formed an optimum currency area with the euro. Chapter four provides a new methodology in testing the international trilemma hypothesis. It is concluded that the trilemma holds in the context of the Asian countries.