National Macroeconomic Policy Preferences and International Coordination Issues

In: Journal of public policy, Band 8, Heft 3-4, S. 235-263

Abstract

ABSTRACTThis paper stresses the importance of taking domestic economic structures and political pressures into account when considering issues of international macroeconomic policy coordination. The existence of domestic biases can cause policy coordination to increase rather than reduce macroeconomic instability. The paper offers a survey of the literature on national macroeconomic policy preferences and inflation unemployment tradeoffs. While this research is still in its infancy, it is clear that there are important differences across countries which must be taken into account in designing coordination strategies.