International Macroeconomic Policy Coordination: Any Lessons for EMU?

2001 ◽  
pp. 65-90 ◽  
Author(s):  
Peter Mooslechner ◽  
Martin Schuerz
Keyword(s):  
Macroeconomic Policy ◽  
Policy Coordination ◽  
International Macroeconomic Policy

scholarly journals Obstacles to International Macroeconomic Policy Coordination

1988 ◽  
Vol 8 (3-4) ◽  
pp. 353-374 ◽  
Author(s):  
Jeffrey A. Frankel
Keyword(s):  
Macroeconomic Policy ◽  
Policy Coordination ◽  
Economic Knowledge ◽  
Negative Effects ◽  
Welfare Gains ◽  
Initial State ◽  
State Of The Economy ◽  
International Macroeconomic Policy ◽  
The Impact ◽  
Different Sources

ABSTRACTThis paper considers the effects of uncertainty on the magnitude of prospective welfare gains from international macroeconomic policy coordination. Three different sources of uncertainty are studied: the initial state of the economy; the correct welfare weights to be assigned to policy targets; and the impact on the economy that economic models attribute to policy changes. Simulation results show that uncertainty about any of the three reduces the likely gains from coordination and creates the possibility of negative effects. The gains from improved economic knowledge can be quite substantial in relation to the gains from coordination. This suggests that the development and exchange of economic information can be an important function of international cooperation.

National Macroeconomic Policy Preferences and International Coordination Issues

1988 ◽  
Vol 8 (3-4) ◽  
pp. 235-263 ◽  
Author(s):  
Thomas D. Willett
Keyword(s):  
Macroeconomic Policy ◽  
Policy Coordination ◽  
Policy Preferences ◽  
Coordination Strategies ◽  
Macroeconomic Instability ◽  
International Coordination ◽  
International Macroeconomic Policy

ABSTRACTThis paper stresses the importance of taking domestic economic structures and political pressures into account when considering issues of international macroeconomic policy coordination. The existence of domestic biases can cause policy coordination to increase rather than reduce macroeconomic instability. The paper offers a survey of the literature on national macroeconomic policy preferences and inflation unemployment tradeoffs. While this research is still in its infancy, it is clear that there are important differences across countries which must be taken into account in designing coordination strategies.

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