GDP-spillovers in multi-country models
Spillovers resulting from fiscal and monetary policy are compared and analysed in small static, small dynamic and large dynamic multi-country models. To compare the size of the spillovers, we consider simulations in which GDP for a certain number of years is held one percent above base in the country where the shock originates. The results indicate that spillovers are large in size. An important transmission mechanism in the contribution to foreign GDP is found to be the foreign real interest rate, contributions to foreign GDP generated through trade are found to be small. In empirical models with endogenous exchange and interest rates, it was found that under floating exchange rate regimes spillovers are much smaller than under pegged exchange rate regimes. Furthermore, we note that under floating exchange rate regimes, spillovers seem to be larger in small dynamic models than in large empirical models.
|Date of creation:||1998|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- M.J. Andrews & D.N.F. Bell & P.G. Fisher & K.F. Wallis & J.D. Whitley, 1985. "Models of the UK Economy and the Real Wage-Employment Debate," National Institute Economic Review, National Institute of Economic and Social Research, vol. 112(1), pages 41-52, May.
- Roubini, Nouriel, 1991.
"Leadership and cooperation in the Europian Monetary System: A simulation approach,"
Journal of Policy Modeling,
Elsevier, vol. 13(1), pages 1-39.
- Nouriel Roubini, 1989. "Leadership and Cooperation in the European Monetary System: A Simulation Approach," NBER Working Papers 3044, National Bureau of Economic Research, Inc.
- Mitchell, Peter R. & Sault, Joanne E. & Smith, Peter N. & Wallis, Kenneth F., 1998. "Comparing global economic models," Economic Modelling, Elsevier, vol. 15(1), pages 1-48, January.
- Papell, David H, 1989.
"Monetary Policy in the United States under Flexible Exchange Rates,"
American Economic Review,
American Economic Association, vol. 79(5), pages 1106-16, December.
- Papell, D.H., 1988. "Monetary Policy In The Unites States Under Flexible Exchange Rates," Papers 8, Houston - Department of Economics.
- Helliwell, John F. & Padmore, Tim, 1985.
"Empirical studies of macroeconomic interdependence,"
Handbook of International Economics,
in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 2, chapter 21, pages 1107-1151
- John F. Helliwell & Tim Padmore, 1982. "Empirical Studies of Macroeconomic Interdependence," NBER Working Papers 1021, National Bureau of Economic Research, Inc.
- Douven, R. C. & Plasmans, J. E. J., 1996. "SLIM, a small linear interdependent model of eight EU-member states, the USA and Japan," Economic Modelling, Elsevier, vol. 13(2), pages 185-233, April.
- Blanchard, Olivier Jean & Kahn, Charles M, 1980. "The Solution of Linear Difference Models under Rational Expectations," Econometrica, Econometric Society, vol. 48(5), pages 1305-11, July.
- Ghosh, Atish R & Masson, Paul R, 1991. "Model Uncertainty, Learning, and the Gains from Coordination," American Economic Review, American Economic Association, vol. 81(3), pages 465-79, June.
- repec:sae:niesru:v:112:y::i:1:p:41-52 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:28506. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.