Macroeconomic Interdependence of Japan and the United States: Some Simulation Results
In this paper we examine the macroeconomic interdependence of Japan and the U.S. using a medium-scale simulation model of the world economy. Our goal is to determine how shifts in macroeconomic policies in the U.S. or Japan affect the other country as well as the rest of the world. In particular we examine the following three issues: (1) the likely macroeconomic ramifications for the U.S., Europe and Japan of significant budget cuts in the U.S.; (2) the macroeconomic implications of a protectionist tariff imposed by the U.S.; and (3) the scope for policy coordination among the U.S., Japan and Europe.
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More About This Work
Published as "The Economic Policy Mix, Policy Cooperation, and Protectionism: Some Aspects of Macroeconomic Interdependence Among the United States, Japan, and Other OECD Countries," Journal of Policy Modeling, vol. 7, no. 4, (Winter 1985), pp. 533-687.