The design and desirability of rules for the international coordination of macroeconomic policies in a world characterized by model uncertainty are considered. The presence of model uncertainty provides additional incentive to coordinate policies, provided that policymakers recognize that they...

The paper considers gains from international economic policy coordination when there is uncertainty concerning the functioning of the world economy, but also learning about the quot;truequot; model on the part of policymakers. The paper reports estimates of plausible alternative versions of a...