Evaluating the Gains to Cooperation in the G-3

Caporale, Guglielmo Maria; Chui, Michael; Hall, Stephen G.; Henry, Brian

doi:10.1023/b:empi.0000005152.92230.d8

Cited by 4 publications

(6 citation statements)

References 22 publications

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“…Second, it estimates the effectiveness of coordinated policy making. Particular interest is devoted to the G3 group, which represents the most infl uential players in macroeconomic policy coordination (Christodoulakis et al, 1994(Christodoulakis et al, , 1996Clarida et al, 1998Clarida et al, , 1999Caporale et al, 2003).…”

Section: International Policy Coordinationmentioning

confidence: 99%

The transmission of shocks between Europe, Japan and the United States

Papanyan

2009

Journal of Forecasting

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This paper identifies the types of shocks that affect the economies of Europe, the USA and Japan, and the transmission paths of those shocks between these countries. The identification of shocks is based on the Cointegrated VAR methodology. The categorization and interpretation of shocks are based on synthesis of theoretical studies on international business cycles and international policy coordination. We show that the Cointegrated VAR model is a valid choice and that it demonstrates good fit with the data-generating processes of the time series examined. We find that country-specific US permanent shocks transmit to Europe and Japan and, when positive, have a locomotive effect. The USA is not affected by the country-specific permanent shocks of Europe or Japan. The permanent shocks originating in Europe or Japan do not have a significant effect on the opposite country's growth rates. The model identifies one common symmetric transitory shock affecting all three countries. Copyright © 2009 John Wiley & Sons, Ltd.

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Section: International Policy Coordinationmentioning

confidence: 99%

The transmission of shocks between Europe, Japan and the United States

Papanyan

2009

Journal of Forecasting

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“…For this, the monetary rule is fixed, and the weights are optimalinflation minimising ones. These weights are those derived in a previous optimising exercise following a shock to US government expenditure (see Caporale et al 2003). A similar procedure is followed for the Nash (ii) and fully cooperative (iii) exercises.…”

Section: B the Results Of The Policy Experimentsmentioning

confidence: 99%

“…Stochastic exercises are reported in Caporale et al (2003), and the various methods, including those used in this project, are described in Caporale et al (2002). What the present study and that by Taylor share, is that the policy analysis is explicit.…”

Section: (B) the Present Methodsmentioning

confidence: 92%

“…of this (see also Caporale et al (2003). Stochastic exercises are reported in Caporale et al (2003), and the various methods, including those used in this project, are described in Caporale et al (2002).…”

Section: (B) the Present Methodsmentioning

confidence: 99%

“…Setting up the Exercises Fiscal optimising is done, using (2), where the ρ j (j = p, I, d) are derived optimally, and where, to start with, a fixed monetary rule is in place, where the weights of these latter functions have been selected using an earlier -monetaryoptimisation exercise (This is reported in Caporale et al (2003)). After reporting the results of this, joint optimising of fiscal and monetary weights is done, and the results compared with the fiscal-policy alone optimisation.…”

Section: Fiscal Policy Coordinationmentioning

confidence: 99%

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Fiscal Consolidation: An Exercise in the Methodology of Coordination

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International Coordination of Macroeconomic Policies: Still Alive in the New Millennium?

Meyer

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Gagnon

et al. 2002

Int. finance discuss. pap.

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In this paper we provide two building blocks for an analysis of international policy coordination: (1) a survey of models of policy coordination, and (2) an account of experience with policy coordination among the G-7 countries and within Europe since the breakdown of the Bretton Woods System. Using these building blocks, we investigate the correspondence between the models and experience and attempt to draw lessons for both the modelers and the practitioners. We find that the correspondence is close enough that the models help in analyzing several instances of actual policy coordination, but that the correspondence could be even closer. As for lessons for modelers, we suggest that they devote more attention to the analysis of information exchange, a key feature of practical policy coordination; to the coordination of different types of policies; to the ramifications of political divisions within countries; and to the implications of market irrationality and speculative bubbles. As for lessons for policy makers, we suggest that they give more consideration to the choice of their ultimate objectives, in particular to whether the current account should always be close to balance; to achieving better internal policies; and to the greater use of fiscal policy as a stabilization tool.

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Evaluating the Gains to Cooperation in the G-3

Cited by 4 publications

References 22 publications

The transmission of shocks between Europe, Japan and the United States

The transmission of shocks between Europe, Japan and the United States

Fiscal Consolidation: An Exercise in the Methodology of Coordination

International Coordination of Macroeconomic Policies: Still Alive in the New Millennium?

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