Simulating the Effects of Some Simple Coordinated versus Uncoordinated Policy
AbstractEffects of different policy rules are simulated: uncoordinated targeting of the money supply or nominal income, use of monetary policy to achieve coordinated targets for nominal or real exchange rates, and the use of monetary and fiscal policies to hit targets for internal and external balance. The following conclusions emerge: rules which performed best for some shocks performed poorly for others; monetary policy was ineffective in limiting movements in real exchange rates; unconstrained use of fiscal policy was quite powerful in influencing real variables; and dynamic instability was a potentially serious problem. Robustness to different specifications and to constraints on instruments remains to be examined.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2929.
Date of creation: Apr 1989
Date of revision:
Publication status: published as Bryant, Ralph C., et al. (eds.) Macroeconomic policies in an interdependent world. Washington, D.C.: International Monetary Fund; Washington, D.C.: Brookings Institution; London: Centre for Economic Policy Research, 1989.
Note: ITI IFM
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Dale W. Henderson & Warwick J. McKibbin, 1993.
"A comparison of some basic monetary policy regimes for open economies: implications of different degrees of instrument adjustment and wage persistence,"
International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.)
458, Board of Governors of the Federal Reserve System (U.S.).
- Henderson, Dale W. & McKibbin, Warwick J., 1993. "A comparison of some basic monetary policy regimes for open economies: implications of different degrees of instrument adjustment and wage persistence," Carnegie-Rochester Conference Series on Public Policy, Elsevier, Elsevier, vol. 39(1), pages 221-317, December.
- Salvatore, Dominick, 1995. "The operation and future of the international monetary system," Journal of Policy Modeling, Elsevier, Elsevier, vol. 17(5), pages 513-530, October.
- Eric M. Leeper, 1990. "The dynamics of interest rate and tax rules in a stochastic model," International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.) 375, Board of Governors of the Federal Reserve System (U.S.).
- McAdam, Peter & Mestre, Ricardo, 2008. "Evaluating macro-economic models in the frequency domain: A note," Economic Modelling, Elsevier, Elsevier, vol. 25(6), pages 1137-1143, November.
- Joseph E. Gagnon & Ralph W. Tryon, 1992. "Stochastic behavior of the world economy under alternative policy regimes," International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.) 428, Board of Governors of the Federal Reserve System (U.S.).
- Anthonie Knoester & AndrÃ© Kolodziejak, 1994. "The need for economic policy coordination between Europe, Japan, and the United States: Policy recommendations for the 1990s," Open Economies Review, Springer, Springer, vol. 5(4), pages 327-346, October.
- Barrell, Ray & Dury, Karen & Hurst, Ian, 2003. "International monetary policy coordination: an evaluation using a large econometric model," Economic Modelling, Elsevier, Elsevier, vol. 20(3), pages 507-527, May.
- Peter Mooslechner & Martin Schuerz, 1999. "International Macroeconomic Policy Coordination: Any Lessons for EMU? A Selective Survey of the Literature," Empirica, Springer, Springer, vol. 26(3), pages 171-199, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.