Open-economy Macroeconomics: Proceedings Of A Conference Held In Vienna By The International Economic Association (i.e.a. Conference)

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. Front Matter....Pages i-xxxi Front Matter....Pages 1-1 Exchange-Rate Based Stabilisation under Imperfect Credibility....Pages 3-28 Devaluation, the Terms of Trade, and Investment in a Keynesian Economy....Pages 29-45 Sheet Anchors, Fixed Price Anchors and Price Stability in a Monetary Union....Pages 46-69 Foreign Supply Shocks, Wage Indexation and Optimal Monetary Policy....Pages 70-91 Front Matter....Pages 93-93 The Impact of Fiscal and Productivity Shocks on the Natural Rate of Unemployment in a Two-Country World....Pages 95-118 Shocks and Aggregate Low Frequency Variability in a Small Open Economy....Pages 119-136 Real Shocks and the Real Exchange Rate....Pages 137-152 Economic Adjustment and Growth in Small Developing Countries....Pages 153-163 Front Matter....Pages 165-165 Influence of Fiscal Shocks on Exchange Rate Volatility under Imperfect Capital Mobility and Asset Substitutability....Pages 167-185 Domestic and Foreign Shocks to Employment and Capital Accumulation in Germany....Pages 186-202 Capital Taxation, Housing Investment and Wealth Accumulation in a Small Open Economy....Pages 203-223 Underemployment Equilibria in an Empirical Macromodel for Austria....Pages 224-237 Front Matter....Pages 239-239 Measurement Errors and the Convergence Hypothesis....Pages 241-256 Three Parity Conditions in International Finance....Pages 257-271 Endogenous Growth, Convergence and Fiscal Policies in an Interdependent World....Pages 272-288 Consistent Conjectural Equilibria and Economic Policies Coordination....Pages 289-309 Front Matter....Pages 311-311 Stochastic Shocks, Fads and Exchange Rate Fundamentals: An Empirical Evaluation of the Target Zone Proposal....Pages 313-331 The Theory of Exchange Rate Determination, and Exchange Rate Forecasting....Pages 332-352 A Chaotic Monetary Model of the Exchange Rate....Pages 353-376 Theories, Consistent Expectations and Exchange Rate Dynamics....Pages 377-399 Front Matter....Pages 311-311 Bandwagon Effects or Rational Expectations in the Exchange Rate?....Pages 400-407 Back Matter....Pages 409-416 Brings together over 20 papers delivered at a conference on open-economy macroeconomics, held in Vienna under the auspices of the International Economic Association and the Institute for Advanced Studies, Vienna. Also included is a section on innovative modelling of exchange rate dynamic. Edited By Helmut Frisch And Andreas Wörgötter. Includes Bibliographical References And Indexes.