Three Essays in International Macroeconomics

Abstract

This thesis challenges three views in international macroeconomics with important policy implications. The first chapter asks how fiscal policy should be designed in a monetary union and draws novel conclusions. The second chapter challenges the notion how nominal exchange rates respond to exogenous interest rate changes under rational expectations. It provides new empirical evidence and a theoretical explanation of this evidence. The third chapter calls the view into question that the German current account surplus is too large by rationalizing the surplus on the basis of a theoretical model.