Description
This volume comprises twelve essays on macroeconomic policy in the open economy. Divided between analysis of the internal and external adjustment problems of small open economies and studies of the behavior of large interdependent countries, the essays use both neo-Classical and neo-Keynesian approaches. The role of fiscal policy and its effects on the international terms of trade, on trade and current account balances, on domestic and foreign interest rates, stock markets, consumption, and investment is emphasized throughout the collection; several essays also address monetary policy and the problem of efficient disinflation under alternative exchange rate regimes.
