This paper develops a rigorous analytical framework suitable for the analysis of the effects of spending and tax policies on the world economy. It modifies the conventional conclusions according to which a budget deficit or a temporary current rise in government spending typically tend to raise...

Much of the recent research of the international economic consequences of budget deficit has been conducted under the assumption that taxes are lump sum. It has thus abstracted from important issues that arise in the context of distortionary tax systems. Our analysis deals with the international...

The Mundell-Fleming model of international macroeconomics originated in the early 1960s and was extended during the ensuing quarter century. This paper develops an exposition which integrates the various facets of the model and incorporates its extensions into a unified analytical framework....

This paper highlights macroeconomic issues pertinent to the understanding of the international and domestic effects of international VAT harmonization. It outlines elements of the policies of VAT harmonization envisaged for Europe of 1992, and develops a basic tax model which is suitable for the...

This paper highlights key macroeconomic issues related to VAT harmonization. A model is developed which emphasizes the effects of changes in the time profile of various taxes on international behavior. Dynamic simulations reveal that the macroeconomic and welfare implications of VAT...