Showing papers on "Economic interdependence published in 1985"
73 citations
Posted Content•
TL;DR: In this article, the authors address the possible reasons for increased economic interdependence on some of its meanings, and the implications of that increased economic interferences for the functioning of national economies, including national economic policy.
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.
70 citations
Book•
01 Jan 1985
TL;DR: Hamada as discussed by the authors applied game theory, public economics, and oligopoly theory to the problem of the choice of international monetary regimes in a world where goods markets and capital markets are increasingly integrated.
Abstract: Koichi Hamada has made seminal contributions to the study of economic interdependence and was one of the key originators of the game-theoretic approach to the topic. In this book, he applies current methods of game theory, public economics, and oligopoly theory to the problem of the choice of international monetary regimes in a world where goods markets and capital markets are increasingly integrated. The book examines how the choice of an international monetary regime affects the nature of policy interdependence and distribution of economic welfare among countries, what kind of international monetary regime each country wishes to choose, and what kind of regime is most likely to be realized. It shows that, in a world where a few large nations have substantial influence, it is important to recognize both the mutual strategic interdependence and differing nature of strategic structures from one regime to another.The first three chapters discuss the kinds of incentives participating countries face when deciding whether to agree on the adoption or alteration of a monetary regime. The remaining chapters show how the nature of policy interdependence differs depending on the exchange rate system.Contents: Political and Economic Aspects of International Monetary Relations; The Choice of International Monetary Regimes; On the Political Economy of Monetary Integration: A Public Economic Approach; International Monetary Interdependence in a Keynesian Model; A Strategic Analysis of Monetary Interdependence: A Flexible Price Model; Exchange Rate Regimes and the Effect of Changes in the Terms of Trade; The International Transmission of Stagflation under Fixed and Flexible Exchange Rates; Monetary Interdependence under a Managed Float System.Koichi Hamada is Professor of Economics at the University of Tokyo.
34 citations
TL;DR: The most likely state of the relationship in 1985-86 is friendly competition with mild signs of economic interdependence (75% probability), and major formative factors beyond 1986 include degree of mutual economic benefits, status of foreign debt terms, economic health, viability of countertrade, inward vs. outward orientations, internal stability, regime compatibility, comparative advantage, political status of neighbors, and status of nuclear development programs.
Abstract: : Events since 1979 have steadily softened the long-dominant tone of rivalry in Brazilian-Argentine relations and have set up a mutual confidence level and institutional mechanisms sufficient to support greater degrees of cooperation. The mutual understanding, formally established during a landmark May 1980 visit of Brazil's President Joao Figueiredo to President Jorge Videla in Buenos Aires, is attributable above all to a pragmatic perception in both capitals that accumulated and unaddressed small grievances could mount into major and unnecessary points of attrition sapping more important efforts. The most likely state of the relationship in 1985-86 is friendly competition with mild signs of economic interdependence (75% probability). Major formative factors beyond 1986 include degree of mutual economic benefits, status of foreign debt terms, economic health, viability of countertrade, inward vs. outward orientations, internal stability, regime compatibility, comparative advantage, political status of neighbors, and status of nuclear development programs. Most likely in 1987-89 is continuation of an essentially cooperative tone with subdued competition (65% probability), unless poor management of the nuclear issue causes an upsurge in tensions (25% probability). American policy will be affected chiefly by somewhat greater autonomy of the partners. This research covers political, economic and security relations with conclusions and implications for U.S. foreign policy.
27 citations
Posted Content•
TL;DR: In this paper, the authors use vector autoregression (VAR) to examine the response of the domestic economy to foreign influences and quantify some of the concepts and relationships relating to economic interdependence.
Abstract: The authors use vector autoregression (VAR) modelling techniques to examine the response of the domestic economy to foreign influences and to quantify some of the concepts and relationships relating to economic interdependence. Particular attention is given to the dynamic behaviour and interactions of the U.S. and Canadian economies over the past twenty years. Extensive empirical […]
20 citations
TL;DR: In this paper, the authors used a small analytical two-region (the United States and the Rest of the Industrial World) model, to analyze three issues Concerning international economic interdependence and macroeconomic policy coordination that have been raised in connection with the September 1985 World Economic Outlook published by the IMF.
Abstract: The paper uses a small analytical two-region (the United States and the Rest of the Industrial World) model, to analyze three issues Concerning international economic interdependence and macroeconomic policy coordination that have been raised in connection with the September1985 World Economic Outlook published by the IMF.They are: (1) What should bethe monetary and/or fiscal response in the Rest of the Industrial World to a tightening of U.S. fiscal Policy and what should be the U.S. monetary response? (2) What Should be the monetary and/or fiscal response in the United States and in the Rest of the Industrial World to a"Collapse of the U.S. dollar?" The paper highlights the importance of determining the causes of such a "hard landing" for the U.S.dollar, as the appropriate policy responses are very sensitive to this; (3) What should be the macroeconomic policy response in the Industrial World to a disappointing real growth performance? Again the correct identification of the reason(s) for the disappointmentis shown to be crucial.The final Section discusses and qualifies the activist policy conclusions derived from the formal analysis.
18 citations
TL;DR: In this article, the authors examined the nature of economic interdependence in the less developed countries (LDCs) and found that LDCs are more economically dependent than developed countries.
Abstract: Empirical studies of interdependence have mainly focused on whether interdependence has been increasing or declining on a world scale In this research note I examine the nature of economic interdependence in the less developed countries (LDCs) The main question that I address is whether LDCs are more economically dependent, in the sense of being more deeply involved in economic interdependence relationships, than developed countries (DCs) Richard Cooper and Edward Morse have argued that economic interdependence is associated with increased industrialization and modernization—implying that LDCs are less involved than DCs in interdependence relationships Empirical evidence presented here suggests that LDCs are, in fact, more dependent than DCs
13 citations
01 Feb 1985
TL;DR: In this article, the authors examine the nature of the economic interdependence between polluting and polluted countries and provide insight into how a particular case of transfrontier pollution (TFP) is likely to be resolved in the absence of an international liability law, since it would indicate if the use of leverage were possible or if bribe-type policies must be used instead.
Abstract: An examination of the nature of the economic interdependence between polluting and polluted countries provides insight into how a particular case of transfrontier pollution (TFP) is likely to be resolved in the absence of an international liability law, since it would indicate if the use of leverage were possible or if bribe-type policies must be used instead. The economic literature on TFP focuses on the externality characteristics of TFP and the development of solutions that are relevant only to areas where a central authority capable of resolving the dispute exists. The author suggests that economists might contribute more to the discussion of actual disputes by focusing on the implications of economic interdependence instead. One implication is the existence of a de facto weaker-country pays principle. 21 references.
3 citations
01 Jul 1985
TL;DR: This article explored sources of support and disaffection from corporatist resolutions to economic crises and found substantial resistance to demands for sacrifice and cynicism toward hierarchical elites in the aftermath of the loan guarantee.
Abstract: This study explores sources of support and disaffection from corporatist resolutions to economic crises. The article proceeds by: (1) presenting corporatism as an ideal type of legitimate domination; (2) discussing the Chrysler Loan Guarantee Act as an instance of corporatist legitimacy; and (3) analyzing interviews conducted with laid-off Chrysler workers in the aftermath of the loan guarantee. The findings suggest that while there is considerable support for corporatist themes such as economic interdependence and nationalism, there is substantial resistance to demands for sacrifice and cynicism toward hierarchical elites.
2 citations
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TL;DR: In this paper, an econometric link system for the East and Southeast Asian countries, Japan and the United States including ten individual national models, and, then, the structure of the interdependence between these countries in the 1970s in terms of elasticity-multipliers based on policy simulations is analyzed.
Abstract: The East and Southeast Asian countries have close economic relationships with Japan and the United States through trade and capital movements. Economic interdependence within the East and Southeast Asian region has also been increasing steadily in recent years. Quantitative analyses of any national economy in this region, therefore, should allow for its relations with other economies. The econometric link system is a method of analysing individual economies focusing on this aspect of economic interdependence. The purpose of this chapter is, first, to construct an econometric link system for the East and Southeast Asian countries, Japan and the United States including ten individual national models, and, then, to analyse the structure of the interdependence between these countries in the 1970’s in terms of elasticity-multipliers based on policy simulations. Our international linkage model is called the Asian Link System.
2 citations
01 Jan 1985
TL;DR: In this article, the authors analyse changes in the nature of economic interdependence from the 1960s to the 1970s and offer some explanations for these changes, drawing upon the framework of analysis developed in the previous chapters of the book.
Abstract: The unifying theme of this chapter is economic interdependence among the industrialised countries and its implications for monetary policies. In Sections I to III we analyse changes in the nature of economic interdependence from the 1960s to the 1970s and offer some explanations for these changes. In doing so, we draw upon the framework of analysis developed in the previous chapters of the book. In Sections IV and V we study the transmission abroad of policy shocks originating in the United States in recent history.