The integration of market economies is one of the most remarkable features of international economics, which has important implications for macroeconomic performance in open economies. Equally important is the declining relevance of the real versus the monetary theory dichotomy. These papers focus on those aspects of monetary policy which relate to credibility and non-neutrality; the domestic adjustment to foreign shocks; the interdependence of open economies and their strategic interactions. An important section is also devoted to the innovative modelling of exchange rate dynamics.

Inhalt

The International Economic Association - Acknowledgements - List of Contributors and Participants - Abbreviations and Acronyms - Preface - Introduction; H.Frisch & A.Worgotter - PART 1: MONETARY POLICY IN OPEN ECONOMIES - Exchange-Rate-Based Stabilisation under Imperfect Credibility; G.A.Calvo & C.A.V gh - Devaluation, the Terms of Trade and Investment in a Keynesian Economy; M.Gavin - Sheet Anchors, Fixed Price Anchors and Price Stability in a Monetary Union; A.J.H.Hallett, D.Vines & M.Anthony - Foreign Supply Shocks, Wage Indexation and Optimal Monetary Policy; F.X.Hof - PART 2: DOMESTIC ADJUSTMENT TO FOREIGN SHOCKS - The Impact of Fiscal and Productivity Shocks on the Natural Rate of Unemployment in a Two-Country World; E.S.Phelps & H.T.Hoon - Shocks and Aggregate Low Frequency Variability in a Small Open Economy; C.C.Starck - Real Shocks and the Real Exchange Rate; E-M.Claassen - Economic Adjustment and Growth in Small Developing Countries; D.Worrell - PART 3: LABOUR AND CAPITAL MARKETS IN OPEN ECONOMIES - Influence of Fiscal Shocks on Exchange Rate Volatility under Imperfect Capital Mobility and Asset Substitutability; S.Gazioglu - Domestic and Foreign Shocks to Employment and Capital Accumulation in Germany; O.Landmann & J.Jerger - Capital Taxation, Housing Investment and Wealth Accumulation in a Small Economy; S.B.Nielsen & P.B.Sorensen - Underemployment Equilibria in an Empirical Macromodel for Austria P.Neudorfer & K.Pichelmann - PART 4: INTERDEPENDENCE OF OPEN ECONOMMIES - Measurement Errors and the Convergence Hypothesis; E.E.Leamer - Three Parity Conditions in International Finance; R.C.Marston - Endogenous Growth, Convergence and Fiscal Policies in an Interdependent World; G.S.Alogoskoufis & F.van der Ploeg - Consistent Conjectural Equilibria and Economic Policies Coordination; H.Sterdyniak & P.Villa - PART 5: BUBBLES VERSUS FUNDAMENTALS: MODELLING EXCHANGE RATE BEHAVIOUR - Stochastic Shocks, Fads annd Exchange Rate Fundamentals: an Empirical Evaluation of the Target Zone Proposal; N.M.Christodoulakis - The Theory of Exchange Rate Determination and Exchange Rate Forecasting; G.Gandolfo, P.C.Padoan & G.De Arcangelis - A Chaotic Monetary Model of the Exchange Rate; P.De Grauwe & H.Dewachter - Theories, Consistent Expectations and Exchange Rate Dynamics; M.Goldberg & R.Frydman - Bandwagon Effects, or Rational Expectations in the Exchange Rate?; V.Vijayraghavan