This study reviews early simulations of the effects of German unification using three different rational-expectations multi-country models. Despite significant differences in their structures and in the implementations of the unification shock, the models delivered a number of common results...

The macroeconomic effects of population aging are explored using data for the G-7 countries and Australia. The link between changes in birth and mortality rates on the one hand, and dependency ratios on the other, is first discussed, then empirical evidence on the effects of dependency ratios on...

The paper surveys exchange rate models, but in a way that differs from existing surveys because it focusses on alternatives available for inclusion in structural multi-country models. It emphasizes that non-structural time-series models or reduced forms are not useful in this context: what is...

The effects of population aging are examined with the aid of a theoretical model and simulations of MULTIMOD. An older population will consume more of aggregate disposable income, require higher government expenditure, and decrease labor supply. These effects should raise real interest rates and...