01758cas a2200241 a 4500 AALejournalIMF000941 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451850628 1018-5941 BD-DhAAL BD-DhAAL Kollman, Robert. Explaining International Comovements of Output and Asset Returns : The Role of Money and Nominal Rigidities / Robert Kollman. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (50 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Empirically, output and asset returns are highly positively correlated across the United States and the other major industrialized countries. Standard business cycle models that assume flexible prices and wages, in the Real Business Cycle tradition, have great difficulties explaining this fact. This paper presents a dynamic-optimizing stochastic general equilibrium model of a two-country world with sticky nominal prices and wages and a flexible exchange rate. The structure here predicts positive international transmission of country-specific monetary policy and technology shocks, and it generates sizable cross-country correlations of output and of asset returns. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1999/084 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/084/001.1999.issue-084-en.xml IMF e-Library