International Macroeconomics: From the Great Financial Crisis to COVID-19, and Beyond

ABSTRACT

This Mundell–Fleming lecture reviews some of the main developments in international macroeconomics since the early 2000s. It highlights four important areas of progress (a) on international pricing and invoicing;(b) on sectoral trade and production networks;(c) on the cross-border allocation of capital and the role of global financial intermediaries;(d) on cross-border externalities and prudential policies. It then explores three specific questions, relevant for future research and policy (a) the implementation of optimal prudential policy via ‘basis control;' (b) recent developments about the US external balance sheet and its ‘exorbitant privilege;' and (c) the reform of the International Financial and Monetary System.