Autonomy and the Choice of Policy in Asymmetrically Dependent Economies: An Investigation of the Gains from International Policy Co-ordination
AbstractThis paper examines whether decentralized control of the world e conomy effectively limits our ability to steer individual economies. It is well known that noncooperative policies are Pareto inefficient;but there is, as yet, no empirical evidence on the costs of uncoordinated policies or the potential g ains and risks in cooperation. In contrast to recent theoretical work in the are a, this paper uses an estimated multicountry model in a dynamic game framework t o estimate those costs and benefits. Policy design depends crucially on the asym metries between economies. Successful coordination depends on anticipation and o n timing the fiscal and monetary policy impacts correctly. Copyright 1986 by Royal Economic Society.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Economic Papers.
Volume (Year): 38 (1986)
Issue (Month): 3 (November)
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- Peter Mooslechner & Martin Schuerz, 1999. "International Macroeconomic Policy Coordination: Any Lessons for EMU? A Selective Survey of the Literature," Empirica, Springer, vol. 26(3), pages 171-199, September.
- Nolan, Charles, 2002.
"Monetary Stabilisation Policy in a Monetary Union: Some Simple Analytics,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 49(2), pages 196-215, May.
- Andrew Brigden & Charles Nolan, 1999. "Monetary stabilisation policy in a monetary union: some simple analytics," Bank of England working papers 102, Bank of England.
- Thomas Willett, 1999. "Developments in the Political Economy of Policy Coordination," Open Economies Review, Springer, vol. 10(2), pages 221-253, May.
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