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Author: Mr.Jonathan David Ostry
Publisher: International Monetary Fund
ISBN: 1475525184
Category : Business & Economics
Languages : en
Pages : 31
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Book Description
In bilateral and multilateral surveillance, countries are often urged to consider alternative policies that would result in superior outcomes for the country itself and, perhaps serendipitously, for the world economy. While it is possible that policy makers in the country do not fully recognize the benefits of proposed alternative policies, it is also possible that the existing policies are the best that they can deliver, given their various constraints, including political. In order for the policy makers to be able and willing to implement the better policies some quid pro quo may be required—such as a favorable policy adjustment in the recipients of the spillovers; identifying such mutually beneficial trades is the essence of international policy coordination. We see four general guideposts in terms of the search for globally desirable solutions. First, all parties need to identify the nature of spillovers from their policies and be open to making adjustments to enhance net positive spillovers in exchange for commensurate benefits from others; but second, with countries transparent about the spillovers as they see them, an honest broker is likely to be needed to scrutinize the different positions, given the inherent biases at the country level. Third, given the need for policy agendas to be multilaterally consistent, special scrutiny is needed when policies exacerbate global imbalances and currency misalignments; and fourth, by the same token, special scrutiny is also needed when one country’s policies has a perceptible adverse impact on financial-stability risks elsewhere.
Author: Mr.Jonathan David Ostry
Publisher: International Monetary Fund
ISBN: 1475525184
Category : Business & Economics
Languages : en
Pages : 31
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Book Description
In bilateral and multilateral surveillance, countries are often urged to consider alternative policies that would result in superior outcomes for the country itself and, perhaps serendipitously, for the world economy. While it is possible that policy makers in the country do not fully recognize the benefits of proposed alternative policies, it is also possible that the existing policies are the best that they can deliver, given their various constraints, including political. In order for the policy makers to be able and willing to implement the better policies some quid pro quo may be required—such as a favorable policy adjustment in the recipients of the spillovers; identifying such mutually beneficial trades is the essence of international policy coordination. We see four general guideposts in terms of the search for globally desirable solutions. First, all parties need to identify the nature of spillovers from their policies and be open to making adjustments to enhance net positive spillovers in exchange for commensurate benefits from others; but second, with countries transparent about the spillovers as they see them, an honest broker is likely to be needed to scrutinize the different positions, given the inherent biases at the country level. Third, given the need for policy agendas to be multilaterally consistent, special scrutiny is needed when policies exacerbate global imbalances and currency misalignments; and fourth, by the same token, special scrutiny is also needed when one country’s policies has a perceptible adverse impact on financial-stability risks elsewhere.
Author: Jeffrey A. Frankel
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The paper reviews the obstacles to successful international macroeconomic policy coordination, and then offers a proposal for coordination that is designed to have the best chance of overcoming these obstacles: an international version of nominal GNP targeting. There are three sorts of obstacles to coordination: uncertainty, enforcement, and inflation-fighting credibility. Enforcement is always a problem for coordination, but the problem is particularly great in the presence of uncertainty. This is partly because it is difficult to verify compliance if the "performance criteria" are not directly enough under the control of the authorities and partly because a country may end up regretting ex post the criterion that it agreed to ex ante if the criterion is not directly enough related to the target variables about which it ultimately cares. For example, a country that commits to a narrow range for the money supply may regret the commitment if a shift in velocity occurs. The time-inconsistency of inflation-fighting has been offered as a third reason why policy-makers would be better off renouncing period-by-period coordination of discretionary policymaking. But the way to establish inflation-fighting credibility is to precommit to some nominal anchor. The paper argues that International Nominal Targeting (INT) is the best choice for nominal anchor, as well as the best choice for the performance criterion by which compliance with international agreements can be monitored. Nominal GNP (or, better yet, nominal demand) is superior to other candidates such as Ml as a candidate for the nominal variable on which policy-makers should focus, because it is far more robust to velocity shifts and other uncertainties
Author: Mr.Jonathan David Ostry
Publisher: International Monetary Fund
ISBN: 1484334183
Category : Business & Economics
Languages : en
Pages : 31
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Book Description
In bilateral and multilateral surveillance, countries are often urged to consider alternative policies that would result in superior outcomes for the country itself and, perhaps serendipitously, for the world economy. While it is possible that policy makers in the country do not fully recognize the benefits of proposed alternative policies, it is also possible that the existing policies are the best that they can deliver, given their various constraints, including political. In order for the policy makers to be able and willing to implement the better policies some quid pro quo may be required—such as a favorable policy adjustment in the recipients of the spillovers; identifying such mutually beneficial trades is the essence of international policy coordination. We see four general guideposts in terms of the search for globally desirable solutions. First, all parties need to identify the nature of spillovers from their policies and be open to making adjustments to enhance net positive spillovers in exchange for commensurate benefits from others; but second, with countries transparent about the spillovers as they see them, an honest broker is likely to be needed to scrutinize the different positions, given the inherent biases at the country level. Third, given the need for policy agendas to be multilaterally consistent, special scrutiny is needed when policies exacerbate global imbalances and currency misalignments; and fourth, by the same token, special scrutiny is also needed when one country’s policies has a perceptible adverse impact on financial-stability risks elsewhere.
Author: William H. Branson
Publisher: University of Chicago Press
ISBN: 0226071383
Category : Reference
Languages : en
Pages : 396
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Book Description
Since the five largest industrial democracies concluded the Plaza Agreement in 1985, the theory and practice of international economic policy coordination has become the subject of spirited academic and public-policy debate. While some view policy coordination as crucial for the construction of an improved international monetary system, others fear that it risks delaying or weakening the implementation of macroeconomic and structural policies. In these papers and comments, prominent international economists consider past and present interpretations of the meaning of international policy coordination; conditions necessary for coordination to be beneficial both to the direct participants and the global economy; influential factors for the quantitative impact of coordination; obstacles to coordination; the most—and least—effective methods of coordination; and future directions of the coordination process, including processes associated with greater fixity of exchange rates. These studies will be readily accessible to policymakers, while offering sophisticated analyses to interested scholars of the global economy.
Author: Jeffrey A. Frankel
Publisher:
ISBN:
Category : Economic policy
Languages : en
Pages : 68
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Book Description
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451844239
Category : Business & Economics
Languages : en
Pages : 33
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Book Description
Recently, monetary authorities have increasingly focused on implementing policies to ensure price stability and strengthen central bank independence. Simultaneously, in the fiscal area, market development has allowed public debt managers to focus more on cost minimization. This “divorce” of monetary and debt management functions in no way lessens the need for effective coordination of monetary and fiscal policy if overall economic performance is to be optimized and maintained in the long term. This paper analyzes these issues based on a review of the relevant literature and of country experiences from an institutional and operational perspective.
Author: National Research Council
Publisher: National Academies Press
ISBN: 0309149681
Category : Science
Languages : en
Pages : 152
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Book Description
The United States spends approximately $4 million each year searching for near-Earth objects (NEOs). The objective is to detect those that may collide with Earth. The majority of this funding supports the operation of several observatories that scan the sky searching for NEOs. This, however, is insufficient in detecting the majority of NEOs that may present a tangible threat to humanity. A significantly smaller amount of funding supports ways to protect the Earth from such a potential collision or "mitigation." In 2005, a Congressional mandate called for NASA to detect 90 percent of NEOs with diameters of 140 meters of greater by 2020. Defending Planet Earth: Near-Earth Object Surveys and Hazard Mitigation Strategies identifies the need for detection of objects as small as 30 to 50 meters as these can be highly destructive. The book explores four main types of mitigation including civil defense, "slow push" or "pull" methods, kinetic impactors and nuclear explosions. It also asserts that responding effectively to hazards posed by NEOs requires national and international cooperation. Defending Planet Earth: Near-Earth Object Surveys and Hazard Mitigation Strategies is a useful guide for scientists, astronomers, policy makers and engineers.
Author: Otaviano Canuto
Publisher: World Bank Publications
ISBN: 1464800030
Category : Business & Economics
Languages : en
Pages : 307
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Book Description
This book deals with the challenges of macro financial linkages in the emerging markets.
Author: Atish R. Ghosh
Publisher: Wiley-Blackwell
ISBN: 9781557863065
Category : Business & Economics
Languages : en
Pages : 296
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Book Description
Economic Cooperation in an Uncertain World examines the case of international policy coordination in the face of macroeconomic uncertainties. It begins by developing a theoretical framework for analyzing the benefits of coordination when there is uncertainty about the effects of macroeconomic policies. As an illustration, this framework is applied to analyze the efforts of the central banks of the major industrialized countries to deal with the global stock market crash of October 1987.
Author: Centre for Economic Policy Research (Great Britain)
Publisher: CUP Archive
ISBN: 9780521337809
Category : Business & Economics
Languages : en
Pages : 408
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Book Description
This volume presents some of the best current research on international economic policy coordination.
