In this paper, we argue that much of the debate regarding the role of government policy in mitigating economic instability has failed to give sufficient attention to the role of capital markets. We argue that in an economy with well-functioning markets for risk-bearing, direct public...

This paper analyzes a two-commodity short-run macroeconomic model under fixed and flexible rates. The model can be used to illustrate the relationship between elasticities, absorption and monetary approach. The specification of aggregate supply is obviously important, so we examine four...

As the title suggests, the purpose of this paper is to present a broad survey of recent theoretical developments relating to exchange rate management and exchange rate systems, and to suggest some possible implications for the formulation of exchange rate policy.

In this paper we argue that rules are desirable in the conduct of fiscal policy. Since the market does not constrain federal borrowing, policy-imposed constraints are necessary to maintain fiscal prudence. A simple rule such as the annually balanced budget is sufficient for fiscal prudence but...

It is the purpose of the present paper to consider, in the context of a continuous time macroeconomic model, how the explicit consideration of the existence of adjustment costs(including foregone consumption) which preclude instantaneous changes in the level of certain stock variables modifies...

This paper analyses the dynamics of labour-market adjustment in response to sectoral shifts using a two sector model. We focus on the interaction between the level of wages and the productivity of finding a job. The model highlights to different speeds of adjustment under the assumption of...

This paper reconsiders some conventional notions about fiscal policy under flexible exchange rates using an extended version of the well-known Dornbusch "overshooting" model. Three widely-held views are challenged: 1) the Mundell-Fleming result that fiscal policy is ineffective under flexible...

This paper explores the structure and specification of goods and factor markets in open economy macro models. Simple benchmark models are set up which abstract entirely from market structure and focus on goods market structure. These real and monetary factors are combined in a full employment...

This paper examines some implications for Ontario of the increases in domestic energy prices, especially oil prices, that are expected to occur in the 1980s. We argue some reallocation of economic activity away from Ontario towards Alberta is called for, but is quite small. It is likely there...