Citation

Discussion Paper Details

Please find the details for DP108 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: The Impact of Interdependence on Economic Policy Design: The Case of the US, EEC and Japan

Author(s): Andrew Hughes Hallett

Publication Date: May 1986

Keyword(s): Dynamic Games, Interdependence, International Policy Coordination and Spillovers

Programme Area(s): International Macroeconomics

Abstract: The world's industrialised economies have become increasingly interdependent over the past 30 years. The policy implications of this mutual dependence obviously depend on the spillover effects between economies: but work on this topic has used simplified models of hypothetical economies, and has therefore failed to clarify the implications of interdependence for policy choices. This paper applies different strategies to linked models of the United States, EEC and Japanese economies to evaluate the importance of spillover effects in policy design. The results indicate that interdependence has strong but asymmetric effects due to differing degrees of market flexibility. The United States performance dominates, while Japanese policies have little impact on the rest of the world. Matching policies produces poor results.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=108

Bibliographic Reference

Hughes Hallett, A. 1986. 'The Impact of Interdependence on Economic Policy Design: The Case of the US, EEC and Japan'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=108