Recent developments in international ecomics have resulted in a research agenda labelled as the New Open Ecomy Macroecomics (NOEM). This book provides a description of the baseline model and discusses open questions in the literature. Two price setting assumptions can be distinguished, the producer currency price setting and the local currency price setting with crucial difference according to the transmission process. The study examines the presence of either price setting assumptions on an empirical basis, the analysis of German exporters and the reaction of import prices in response to exchange rate changes. Finally the traditional NOEM model structure is enriched by introducing foreign direct investment effects.
The Author: After finishing a vocational training with a bank, Christoph Swonke studied economics at the University of Gottingen from 1997 to 2002. Afterwards he did his doctorate at the WHU - Otto Beisheim School of Management in Vallendar. Since April 2007 he has been a member of the academic staff of the Sachverstandigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.