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- W2005890297 abstract "The first subject is policy co-ordination. I have always been a skeptic about the value of co-ordinating macro policies internationally. I feel that policy co-ordination is one of the world's myths and that in practice, it will turn out to have all the disadvantages of fine tuning times seven. Economic theorists now hold the view that as Devereux and Wilson's paper indicates in simple static models there are small gains to co-ordination, while in more 'realistic' models, the co-operative solution of co-ordinated policies may be worse than the nonco-operative solution. One point which I think is critical in the present theorizing is that if different countries have different models, policy co-ordination is no longer necessarily beneficial. I would add two other considerations. First, realistic models should have stochastic properties that are only partially known. We must remember what Milton Friedman said loud and clear: there are long and variable lags in monetary policy. Ex post, we can usually explain why this lag was long, while that lag was short, but in advance lags are hard to predict. In a world where our policies operate with long, variable, and unpredictable lags, and where each country has different models of what is going on, policy co-ordination is certainly not an obvious benefit." @default.
- W2005890297 created "2016-06-24" @default.
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- W2005890297 date "1989-02-01" @default.
- W2005890297 modified "2023-09-26" @default.
- W2005890297 title "Agendas for the 1988 and Future Summits" @default.
- W2005890297 doi "https://doi.org/10.2307/3550820" @default.
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