The economic recessions since 1973 have emphasised the interdependence of the major economies and their policy choices. This paper examines whether decentralised control of the world economy effectively limits our ability to manage individual economies. It is well known that noncooperative...

The world's industrialised economies have become increasingly interdependent over the past 30 years. The policy implications of this mutual dependence obviously depend on the spillover effects between economies: but work on this topic has used simplified models of hypothetical economies, and has...