Japanese Macroeconomic Policy and the Current Account Under Alternative International Monetary Regimes
Empirical estimates of the effect of monetary and fiscal policy on the Japanese current account are provided. To assess the quantitative importance of international monetary factors, these estimates are computed under three different exchange rate regimes: flexible exchange rates, fixed exchange rates with a "yen standard" and fixed exchange rates with a "multi-currency standard." For all exchange rate regimes, monetary policy has a much smaller impact on the current account than fiscal policy, but the impact of fiscal policy on the current account is even larger when exchange rates are fixed than when exchange rates are flexible. The estimates are based on a quarterly multicountry econometric model with rational expectations estimated during the 1972-1986 period.
Year of publication: |
1988
|
---|---|
Authors: | Taylor, John B. |
Published in: |
Monetary and Economic Studies. - Institute for Monetary and Economic Studies. - Vol. 6.1988, 1, p. 1-36
|
Publisher: |
Institute for Monetary and Economic Studies |
Saved in:
freely available
Saved in favorites
Similar items by person
-
A Conversation about Key Conclusions
Shultz, George P.,
-
Defining Systemic Risk Operationally
Taylor, John B.,
-
What the Government Purchases Multiplier Actually Multiplied in the 2009 Stimulus Package
Cogan, John F.,
- More ...