Alan Sutherland

School of Economics and Finance
University of St Andrews
DSt Andrews
Fife KY16 9AL
United Kingdom

Tel:       +44 1334 462446
Fax:      +44 1334 462444

Room S12 

WORKING PAPERS (updated 26 April 2022)

"Country Portfolios, Collateral Constraints and Optimal Monetary Policy" September 2016. CEPR Discussion Paper No 11499. (with Ozge Senay) pdf file

"International Risk Sharing with Portfolio Choice and Non-Separable Preferences" July 2015. CEPR Discussion Paper No 10724. (with Hande Kucuk) pdf file

"International Monetary Policy Coordination and Financial Market Integration" CEPR Discussion Paper No 4251, January 2004, pdf file.

"A Simple Second-Order Solution Method for Dynamic General Equilibrium Models" CEPR Discussion Paper No 3554, July 2002, pdf file. (MATLAB files)

"Inflation Targeting in a Small Open Economy" CEPR Discussion Paper No 2726, pdf file.


"Optimal Monetary Policy, Exchange Rate Misalignments and Incomplete Financial Markets"  Journal of International Economics, 2019, 117, 196-208. (with Ozge Senay) pdf file

"Local Currency Pricing, Foreign Monetary Shocks and Exchange Rate Policy" Open Economies Review, 2015, 26, 633-661. (with Ozge Senay) pdf file

"Nominal Stability and Financial Globalization" Journal of Money, Credit and Banking, 2014, 46, 921-959. (with Michael B Devereux and Ozge Senay) CEPR Discussion Paper 8830, NBER Working Paper No 17796, revised pdf file

"Endogenous Price Flexibility and Optimal Monetary Policy" Oxford Economic Papers, 2014, 66, 1121-1144. (with Ozge Senay) pdf file

"The Timing of Asset Trade and Optimal Policy in Dynamic Open Economies" Macroeconomic Dynamics, 2013, 17, 1543-1573 (with Ozge Senay) (Working paper version: pdf file.)

"Evaluating International Financial Integration Under Leverage Constraints" European Economic Review, 2011, 55, 427-442 (with Michael B Devereux)

"Country Portfolios in Open Economy Macro Models" Journal of the European Economic Association, 2011, 9, 337-369 (with Michael B Devereux) (Working paper version: pdf file.) (DYNARE example code)

"Country Portfolio Dynamics" Journal of Economic Dynamics and Control, 2010, 34, 1325-1342 (with Michael B Devereux) (Working paper version: pdf file.) (DYNARE example code)

"Valuation Effects and the Dynamics of Net External Assets" Journal of International Economics, 2010, 80, 129-143. (with Michael B Devereux) (Working paper version: pdf file.)

"A Portfolio Model of Capital Flows to Emerging Markets" Journal of Development Economics, 2009, 89, 181-193. (with Michael B Devereux) (Working paper version: pdf file.)

"Financial Globalization and Monetary Policy" Journal of Monetary Economics, 2008, 55, 1363-1375. (with Michael B Devereux) (Working paper version: pdf file.)

"Foreign Money Shocks and the Welfare Performance of Alternative Monetary Policy Regimes" Scandinavian Journal of Economics, 2007, 109, 245-266. (with Ozge Senay) (Working paper version: pdf file.)

"Monetary Policy and Portfolio Choice in an Open Economy Macro Model" Journal of the European Economic Association, 2007, 5 (Papers and Proceedings), 491-499. (with Michael B Devereux) (Working paper version: pdf file.)

"Optimal Monetary Policy and the Timing of Asset Trade in Open Economies" Economics Letters, 2007, 95, 297-302. (with Ozge Senay) (Working paper version: pdf file.)

"Computing Second-Order-Accurate Solutions for Rational Expectation Models using Linear Solution Methods" Journal of Economic Dynamics and Control, 2007, 31, 515-530. (with Giovanni Lombardo) (Working paper version: pdf file.) (MATLAB files)

"Policy Instrument Choice and Non-Coordinated Monetary Policy in Interdependent Economies"  Journal of International Money and Finance, 2006, 25, 855-873. (with Giovanni Lombardo) (Working paper version: pdf file.)

"Can Endogenous Changes in Price Flexibility Alter the Relative Welfare Performance of Exchange Rate Regimes?" International Seminar on Macroeconomics 2004, 2006, 371-400. (with Ozge Senay) (Working paper version: NBER Working Paper No 11092.)

"The Expenditure Switching Effect, Welfare and Monetary Policy in a Small Open Economy" Journal of Economic Dynamics and Control, 2006, 30, 1159-1182. (Working paper version: pdf file.)

"Currency Crises and the Term Structure of Interest Rates" Open Economies Review, 2006, 17, 57-71. (Working paper version: pdf file)

"Incomplete Pass-Through and the Welfare Effects of Exchange Rate Variability" Journal of International Economics, 2005, 65, 375-399. (Working paper version: pdf file)

"Cost-Push Shocks and Monetary Policy in Open Economies" Oxford Economic Papers, 2005, 57, 1-33. (Working paper version: pdf file)

"The Expenditure Switching Effect and the Choice Between Fixed and Floating Exchange Rates"  in Driver, Sinclair and Thoenissen (eds), Exchange Rates, Capital Flows and Policy, 2004, London: Routledge. (with Ozge Senay) (Working paper version CEPR Discussion Paper No 4300 pdf file).

"Monetary Union and the Maastricht Inflation Criterion: The Accession Countries" The Economics of Transition, 2004, 12, 635-652. (with Gulcin Ozkan and Anne Sibert) (This is a substantially revised version of "Monetary Union, Entry Conditions and Economic Reform" CEPR Discussion Paper No 1720,  pdf file.)

"Monetary and Fiscal Interactions in Open Economies" Journal of Macroeconomics, 2004 26, 319-348. (with Giovanni Lombardo) (Working paper version, European Central Bank WP No 289)

"Monetary Union and Labour Market Reform" Journal of International Economics, 2000, 51, 421-435. (with Anne Sibert)

"A Currency Crisis Model with an Optimising Policymaker" Journal of International Economics, 1998, 44, 339-364. (with Gulcin Ozkan)

"Fiscal Crises and Aggregate Demand: Can High Public Debt Reverse the Effects of Fiscal Policy" Journal of Public Economics, 1997, 65, 147-162.

"Financial Market Integration and Macroeconomic Volatility" Scandinavian Journal of Economics, 1996, 98, 521-539.

"Intrinsic Bubbles and Mean Reverting Fundamentals" Journal of Monetary Economics, 1996, 37, 163-173.

"Exchange Rate Realignments and Realignment Expectations" Oxford Economic Papers 1995, 47, 211-228. (with Ed Stansfield)

"State-and-Time-Contingent Switches of Exchange Rate Regime" Journal of International Economics, 1995, 38, 361-374.

"Policy Measures to Avoid a Currency Crisis" Economic Journal, 1995, 105, 510-519. (with Gulcin Ozkan)

"Monetary and Real Shocks and the Optimal Target Zone" European Economic Review, 1995, 39, 161-172.

"Currency Crisis Models:  Bridging the Gap Between Old and New Approaches" in Bordes, Girardin and Melitz (eds) European Currency Crises and After, 1995, 57-81, Manchester: Manchester University Press.

"Menu Costs and Aggregate Price Dynamics" in Dixon and Rankin (eds.) The New Macroeconomics:  Imperfect Markets and Policy Effectiveness, 1995, 337-359, Cambridge: CUP.

"Speculative Anticipations of Sterling's Return to Gold: Was Keynes Wrong" Economic Journal, 1994, 104, 804-12. (with Marcus Miller)

"Target Zone Models with Price Inertia: Solutions and Testable Implications" Economic Journal, 1994, 104, 96-113.

"Contracts, Credibility and Common Knowledge: Their Role in Inflation Convergence" IMF Staff Papers, 1993, 40, 178-201. (with Marcus Miller)

"Inflation Convergence with Realignments in a Two-Speed Europe" Economic Journal, 1992, 102, 333-41. (with Luisa Lambertini and Marcus Miller)

"The 'Walters Critique' of the EMS: a Case of Inconsistent Expectations" The Manchester School 1991, Vol LIX Supplement, 23-37. (with Marcus Miller)

"Britain's Return to Gold and Entry into the EMS: Joining Conditions and Credibility" in Krugman and Miller (eds.) Exchange Rate Targets and Currency Bands, 1991, 82-116, Cambridge: CUP. (with Marcus Miller)

"Time Consistency, Discounting and the Returns to Co-operation" in Carraro, Laussel, Salmon and Soubeyran (eds.) International Economic Policy Coordination, 1991, 141-65, Oxford: Blackwell. (with Marcus Miller and Mark Salmon)

"Entering a Preannounced Currency Band" Economics Letters, 1990, 34, 363-68. (with Masaki Ichikawa and Marcus Miller)

"Monetary and Exchange Rate Targets, and After: a Stochastic 'Hard Landing' for Sterling?" in Argy and De Grauwe (eds.) Choosing an Exchange Rate Regime - The Challenge for Smaller Industrial Countries, 1990, 319-45, Washington: IMF. (with Marcus Miller)

"Hysteresis, Monetary Policy and Target Zones" in Christodoulakis (ed.) Dynamic Modelling and Control of National Economies, 1989, 465-72, Oxford: Pergamon.

"Measures of Fiscal Stance and Rules for Stabilising the Economy: the Case for Separating Measurement from Policy" in Eltis and Sinclair (eds.) Keynes and Economic Policy, 1988, 216-34, London: Macmillan. (with Marcus Miller)