International Policy Coordination in a Dynamic Macroeconomic Model PDF Download

Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download International Policy Coordination in a Dynamic Macroeconomic Model PDF full book. Access full book title International Policy Coordination in a Dynamic Macroeconomic Model by Jeffrey Sachs. Download full books in PDF and EPUB format.

International Policy Coordination in a Dynamic Macroeconomic Model

International Policy Coordination in a Dynamic Macroeconomic Model PDF Author: Jeffrey Sachs
Publisher:
ISBN:
Category : Economic policy
Languages : en
Pages : 25

Get Book Here

Book Description
This paper illustrates the role for macroeconomic policy coordination when interdependent economies are pursuing disinflationary policies. Under flexible exchangerates, policy makers have an incentive to reduce inflation by pursuing contractionary policies that yield a currency appreciation. In a Nash, perfect foresight equilibrium, policy authorities in the model pursue contractionary policies to achieve currency appreciation, but these attempts cancel out, with the result that all countries end up pursuing excessively contractionary policies (relative to asymmetric Pareto optimum). The paper presents these resultsin a two-country, infinite-horizon difference game