Showing papers by "Richard N. Cooper published in 1983"

Economic interdependence and coordination of economic policies

Abstract: Publisher Summary The term “economic interdependence” has come into widespread use during the past decade. The chapter addresses the various meanings of this term, the possible reasons for increased economic interdependence on some of its meanings, and the implications of that increased economic interdependence for the functioning of national economies, including national economic policy. Economic interdependence refers to some measure of the value of economic transactions between two countries, or between a country and the rest of the world, perhaps scaled to total national output or to some measure of total financial assets. The responses to increased economic interdependence have varied in character and direction. One response involves steps toward disintegration, to reduce the interdependence and restore some freedom of action to national policy-makers. A second response involves attempts to coordinate national policy actions in one fashion or another, sometimes through conscious collaboration among nations, sometimes by one nation attempting to impose its preferred course of action on others. A third response involves the search for new policy instruments not subject to the same degree of erosion as the traditional instruments, or even choosing instruments that capitalize on the increased economic openness and mobility. New barriers to foreign trade and international movement of capital are examples of disintegration, of efforts to reduce interdependence by providing for increased separation among national markets.

Some Aspects of the 1982-83 Brazilian Payments Crisis

Abstract: BRAZIL'S post1973 economic performance was regarded with admiration in 1979, both in Brazil and elsewhere. Although real GNP growth had declined from the spectacular levels of 1971-73 (around 12 percent a year), it registered more than 8 percent during 1974-76 and nearly 6 percent during 1977-79. The sketchy and somewhat mysterious Brazilian national accounts even registered a post-1973 increase in the rate of fixed capital formation: from 22.9 percent of GNP during 1971-73, it rose to 26.1 percent during 1974-76, declining to 24.9 percent during 1977-79. The share of gross domestic saving in GNP rose during 1974-76, relative to the previous three-year period, although it fell below the 1971-73 level during 1977-79.1 Inflation accelerated after 1973, interrupting a declining trend, and large current account deficits occurred during 1974-79. Yet the growth rate of the external debt, defined as gross mediumand long-term public and publicly guaranteed debt, between the end of 1973 and the end of 1979 (25.8 percent a year) was not that far above the annual growth rate of merchandise exports (20.5 percent a year between 1971-73 and 197779). It could be argued in 1979 that, while some Brazilian investment