Macroeconomic Policies in an Interdependent World
This volume contains revised versions of the essays and discussants' comments presented at a December 1988 conference of the same name, which brought together policy-makers and academic researchers to assess the major issues in the field. The volume begins with two broad surveys: an overview of the issues involved in international coordination of economic policies and the potential benefits; and an analysis of the empirical evidence on macroeconomic interactions in the world economy. These are followed by chapters evaluating alternative rules or regimes for the international macroeconomy, using empirical multicountry macromodels. Further chapters study more specific policy issues: the target zone proposal; the European Monetary System as a possible example for the international economy; and plans for a European central bank. A subsequent chapter examines more general institutional questions concerned with policy coordination and the role of international organizations in the process. The volume ends with a chapter covering macroeconomic interdependence between industrial and developing countries, and the implications of these interactions for international policy coordination.