This volume brings together 12 essays on macroeconomic policy in the open economy. The subject matter is divided equally between analyses of the internal and external adjustment problems of small open economies and studies of the behaviour of large interdepent countries. Both neo-classical and neo-Keynesian approaches are in evidence, depending on the particular issue being addressed. Several essays deal with monetary policy and the problem of efficient disinflation under alternative exchange rate regimes. The theory of speculative attacks on managed exchange rate regimes is extended by incorporating the demands on domestic credit expansion implied by the government budget constraint and the requirement of government solvency. The role of fiscal policy and its effects on the international terms of trade, on trade and current account balance, on domestic and foreign interest rates, stock markets, consumption and investment are emphasized throughout.
- ISBN10 0198286937
- ISBN13 9780198286936
- Publish Date 1 March 1990
- Publish Status Active
- Out of Print 12 September 1996
- Publish Country GB
- Publisher Oxford University Press
- Imprint Clarendon Press
- Format Hardcover
- Pages 364
- Language English