The ITM Program brings together researchers with interests at the intersection of international trade and international macroeconomics. This has been an especially active area in the last fifteen years, with important contributions from academic and policy researchers alike. The topics covered in theoretical and empirical work include (i) using micro data on trade and multinational production to understand macroeconomic interdependence; (ii) price dynamics and markup determination; (iii) trade and labor markets; (iv) global value chains, trade finance, and several others. The tools developed in this literature are being applied to policy questions of interest to central banks, such as the optimal conduct of monetary policy, the implications of different exchange rate arrangements, or the understanding of macroeconomic dynamics in an increasingly integrated world of global value chains.

The ITM Program fills a gap in the existing environment of research organizations by gathering both established and young researchers in this fast-growing research area and providing a forum for interaction, development of ideas, and their dissemination. To fulfill this goal, the Program’s activities include an annual conference hosted by a central bank within the CEBRA network. By including both academics and researchers at central banks and other policy institutions and promoting their interaction, the Program seeks to pursue both excellence in cutting-edge research and its application to the most important policy-relevant questions.