Journal of International Economics

New at JIE: "Fear of appreciation and current account adjustment" by Paul R. Bergin, Kyunghun Kim, Ju H. Pyun

doi.org/10.1016/j.ji...

The paper revisits the financial channel of monetary policy spillovers from center to periphery with disaggregated capital flows holdings, finding little evidence of cap.flow reversals from long term institutional investors, while inv. funds’ holding exhibit stronger sensitivity

New at JIE: "Do investor differences impact monetary policy spillovers to emerging markets?" by Ester Faia, Karen K. Lewis, Haonan Zhou (@haonanzhou.bsky.social)

doi.org/10.1016/j.ji...

New at JIE: "Local global watchdogs: Trade, sourcing and the internationalization of social activism" by Pamina Koenig, Sebastian Krautheim, Claudius Löhnert, Thierry Verdier

doi.org/10.1016/j.ji...

With a new dataset on the intensive margin of capital controls, we document that they are “sticky”. A model of capital controls relying on pecuniary externalities with an $(S,s)$ cost of implementing such policies goes a long way toward bringing the model closer to the data.

New at JIE: "Sticky Capital Controls", by Miguel Acosta-Henao, Laura Alfaro, Andrés Fernández

doi.org/10.1016/j.ji...

This paper introduces a new dataset tracking valuation gains on the U.S. foreign asset position across countries and derives a sufficient statistic that translates those gains into welfare effects.

New at JIE: "Asset price changes, external wealth and global welfare" by Timothy Meyer

doi.org/10.1016/j.ji...

The paper explores the implications of demographic trends for real interest rates across countries and over time. Both model and empirical results suggest demographic trends explain a meaningful share of the global decline in real rates.

New at JIE: "Demographics and real interest rates across countries and over time", by Carlos Carvalho (@cvianac.bsky.social), Andrea Ferrero (@apferrero.bsky.social), Felipe Mazin, Fernanda Nechio

doi.org/10.1016/j.ji...

New at JIE: "Commodity prices and the US dollar" by Daniel M. Rees

doi.org/10.1016/j.ji...

China has by far the strongest home bias in scientific citations—Chinese researchers cite domestic work more than any other country. This inflates China’s rise in science: using a de-biased metric, China drops from #2 to #4, behind the US, UK, and Germany.

New at JIE: "Paper tiger? Chinese science and home bias in citations" Shumin Qiu, Claudia Steinwender (@csteinwender.bsky.social), Pierre Azoulay (@pierre-azoulay.bsky.social)

doi.org/10.1016/j.ji...

New at JIE: "Industrial development and trade policy uncertainty: Evidence from China’s WTO accession" by Weidi Yuan, Difei Ouyang

doi.org/10.1016/j.ji...

The Brexit referendum constituted a deglobalization shock that reduced bank lending to UK firms. However, UK subsidiaries of multinational corporations mitigated these effects by relying on internal capital markets.

New at JIE: "Bank lending and firm internal capital markets following a deglobalization shock", by Björn Imbierowicz (@bjorn-imbierowicz.bsky.social), Arne Nagengast, Esteban Prieto and Ursula Vogel

doi.org/10.1016/j.ji...

Authors develop a central bank-specific large language model (LLM) from 22,000 central bank texts. The LLM is able to predict monetary policy shocks and reveal regime shifts in the Fed’s inflation-targeting stance.

New at JIE: "Whatever it takes to understand a central banker - Embedding their words using neural networks" by Martin Baumgärtner and Johannes Zahner (@goetheuni.bsky.social‬)

doi.org/10.1016/j.ji...

This paper presents empirical evidence for the violation of nominal exchange regime neutrality. Authors find that fixing the exchange rate is associated with real output losses among countries with a high pre-peg inflation rate.

New at JIE: "Output divergence in fixed exchange rate regimes" by Yao Chen and Felix Ward

doi.org/10.1016/j.ji...

A 190-year study of novel Northern European trade data shows former trade networks still shape trade long after their demise—but who facilitates trade persists more than how much is traded.

New at JIE: "Networks in trade - Evidence from the legacy of the hanseatic league", by Max Marczinek, Stephan Maurer (@stephanmaurer.bsky.social‬) and Ferdinand Rauch

doi.org/10.1016/j.ji...

New dataset for 50 countries (1990–2020) tracks the currency mix of cross-border assets & liabilities. The U.S. dollar and euro still dominate, but many emerging economies have flipped from net short to net long FX--reshaping crisis-time wealth transfers.

New at JIE: "The role of currencies in external balance sheets" by Cían Allen, Luciana Juvenal (@lucianajuvenal.bsky.social)

doi.org/10.1016/j.ji...

🚨 Call for Papers 🚨
Conference on Spatial Dynamics | @ Yale Cowles
📅 Conference: Nov 14, 2025 (New Haven)
📝 Submit by: Sept 21, 2025 (for conf.)
📚 Special Issue in @JIntlEcon.bsky.social

👉 www.sciencedirect.com/special-issu...

We study the 1989 CUSFTA and show that content requirements in FTAs can reduce competition more than tariffs. Using US and Canadian data, we find stricter rules raise prices and firm entry, highlighting their impact on market power and trade policy design.

New at JIE: "Regional content requirements and market power: Lessons from CUSFTA", by Wanyu Chung, Carlo Perroni

doi.org/10.1016/j.ji...

Banks’ market capital is a key determinant of the strength of the international risk-taking channel of US monetary policy. This channel is most powerful for banks that have a combination of high regulatory capital and low market capital.

New at JIE: "Banks’ market capital and the international risk taking channel of US monetary policy", by Stefan Avdjiev, Jose Maria Serena

doi.org/10.1016/j.ji...

The paper shows that low interest rates can negatively impact capital allocation and overall welfare. These findings help reconcile recent empirical evidence from Southern Europe and other countries, shedding light on unintended consequences of monetary policy.