This book was first published in 2000. Historically, the study of international trade and finance has focused on the movements of goods and capital between nations. But as countries are becoming more integrated, the macroeconomic role of national borders is diminished. The approach that researchers have recently adopted to further our understanding of how economic interactions between nations will evolve as national borders decline in importance is to analyze economic interactions within a country (i.e., 'intranational macroeconomics'). This book brings the intranational macroeconomics literature into clearer focus by collecting the strands of research into a common thread. Each chapter attempts to answer the following two questions: First, what contributions do national borders make to our understanding of macroeconomics? Second, how will these contributions change as the world becomes more integrated?
• First book to explore systematically role of countries' internal growth effects on international economics • World-class contributors include editors and Maurice Obstfeld, Bent E. Sorenson, Charles Engel, Juergen von Hagen and Holger Wolf • Hot new topic in macroeconomics
Introduction; Part I. Financial and Goods Market Integration: 1. Intranational versus international saving-investment comovements Eric van Wincoop; 2. International and intranational risk sharing Gregory D. Hess and Mario Crucini; 3. Interregional and international credit market integration Bent E. Sorenson and Oved Yosha; 4. Home bias in equity markets: international and intranational evidence Gur Huberman; 5. Relative price volatility: what role does the border play? Charles Engel and John Rogers; 6. (Why) do borders matter for trade? Holger Wolf; Part II. Business Cycles and Growth: 7. Income dynamics in regions and countries Paul Evans; 8. Intranational labor migration, business cycles and growth Antonio Fatas; 9. The sources of fluctuations within and across countries Todd Clark and Kwanho Shin; Part III. Fiscal and Monetary Policy: 10. Regional non-adjustment and fiscal policy Maurice Obstfeld and Fabrizio Peri; 11. Fiscal policy and intranational risk sharing Juergen von Hagen; 12. Do local banks matter for the local economy? In search of a regional credit channel Sandra Hanson and Chris Waller.