文档介绍:International Transmission and Coordination of Macroeconomic Policies
International Economics
Chapter 10
Chapter 10 International Transmission and Coordination of Macroeconomic Policies
International Transmission of Macroeconomic Policies under Fixed Exchange Rates
International Transmission of Macroeconomic Policies under Floating Exchange Rates
International Transmission of Inflation
International Policy Coordination and ary Cooperation
International Transmission of Macroeconomic Policies under Fixed Exchange Rates
Two-Nation Mundell-Fleming Model
It is different from the previous model in two aspects.
Home’s e will have a spilling-over effect on Foreign.
Assume capital has perfect mobility.
International Transmission of Macroeconomic Policies under Fixed Exchange Rates
International Transmission of Fiscal Policy under Fixed Exchange Rates
Under fixed exchange rates, an expansionary fiscal policy of the home country brings about output increases of both the home country and the foreign country.
pared with the case of single country, the output increase of the home country resulting from fiscal policy is smaller.
Because the rise in the interest rate crowds out investment. The increase of the foreign country’s output results from the spilling-out effect of the home country’s e increase but it is partly offset by the rise of the interest rate.
International Transmission of Macroeconomic Policies under Fixed Exchange Rates
International Transmission of ary Policy under Fixed Exchange Rates
Under fixed exchange rates, an expansionary ary policy of the home country leads to rises in the outputs of both the home country and the foreign country and to a fall in the world interest rate.
Compared with fiscal policy, the spilling-out effect of the home country’s expansionary ary policy is larger.
It is because the foreign country has to passively implement an expansionary ary policy as a result of the midway gap between two