Economic disturbances and equilibrium in an integrated global economy: investment insights and policy analysis

Intro; Title page; Table of Contents; Copyright; Preface; Introduction: Asset Allocation: Indexing, Smart Beta, and ValueTiming; Section I: Arbitrage and Mobility; Chapter 1: Arbitrage, Mobility, and Equilibrium Prices; Abstract; A 2X2X2X2 World; Equilibrium Under Autarky; Global and National Equilibrium; Global Equilibrium and the Trade Accounts; The Terms of Trade or Real Exchange Rate; Interest Rate Parity; What Happens When the Terms of Trade Change in Predictable Directions?; Adding the Final X2; Mobility, Trade, and the Equalization of Price and Factor Returns Across Borders.

Transportation Costs and Overall EquilibriumMobility and the Incidence of Taxes and Other Economic Shocks; The Speed of Adjustment to a New Equilibrium; Chapter 2: Practical Applications: The Investment and Policy Insights and Implications Derived From Arbitrage and Mobility; Abstract; Is the Law of One Price a Useful Concept?; Convergence: The Implementation of the Euro; The Convergence and Postconvergence Euro Environments; Divergence: The Dismantling of Bretton Woods; The Local Inflation Results; Does the Law of One Price Still Hold?; Are the Terms of Trade Constant?

Chapter 3: Are Commodity Price Increases Equivalent to Tax Increases?Abstract; Are Commodity Price Increases a Harbinger of Future Inflation?; Solving the Signal Extraction Problem; Searching for the Equivalence between Price and Tax Increases; Does the Price/Tax Equivalence Always Hold?; Considering the Different Possibilities; Interpreting Relative Price Swings; Is a Commodity Relative Price Increase Bullish or Bearish?; Chapter 4: The Terms of Trade; Abstract; A Broader Estimate; Policy Links; The Adjustment Process: Investment Implications; Does Our Theory Hold Water?

Does the Relationship Hold for Other Countries?Chapter 5: Yields, Risk Premium, and Terms of Trade; Abstract; The Different States of the World; Identifying the Different Environments; Summary; Chapter 6: The Competitive Economic Environment: Lessons From the States; Abstract; The States' Competitive Environment; The States' Income Tax Rates as a Proxy for Their Competitive Environment; The Evidence: The Changing Competitive Environment; The Interaction Among States' Migration, State Income Tax Rates, and Right to Work; Brain Drain?; Summary.

Chapter 7: Economic Policy and Performance: The Small-Cap and Country EffectAbstract; A Framework for Regional Economic Performance; The Ranking of the States; Application: The States' GDP Relative Performance; Application: The States' Relative Stock Return Performance and the Size Effect; Investment Implications; Chapter 8: Migration: A Political Problem, an Economic Problem, or Both?; Abstract; Migration: Europe and the Middle East; Where Will the Migrants Go and What Will Be Their Economic Impact on These Economies?; Politics or Economics?; Is Europe Unique or Are These Effects Universal?