Recent analyses of the gains to policy coordination have focussed on the strategic aspects of macroeconomic policy making in a static setting. A major theme is that noncooperative policy making is likely to be Pareto inefficient because of the presence of beggar-thy-neighbor policies. This paper...

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...

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...

Computational Macroeconomics for the Open Economy G. C. Lim and Paul D. McNelis The MIT Press Cambridge, Massachusetts London, England Contents Preface xi Acknowledgments xv 1 Introduction 1 1.1 The Open Economy Setting 1 1.2 Solution Methods 3 1.2.1...

Part I: Static Frameworks -- Chapter 1. A Basic Static Model -- Chapter 2. Extensions of the Basic Model: The Role of MarketStructure -- Chapter 3. A Static Model with Damage Functions -- Part II: Dynamic Frameworks -- Chapter 4. Dynamic Analysis of Climate Policies: A Two-period Model --...

We present conditions for the emergence of singularities in DGE models. We distinguish between slow-fast and impasse singularity types, review geometrical methods to deal with both types of singularity and apply them to DGE dynamics. We find that impasse singularities can generate new types of...