DESIRABLE RULES OF MONETARY COORDINATION AND INTERVENTION AMONG A LARGE NUMBER OF COUNTRIES
A New Method to Analyze the N-Country World
1992 年 43 巻 3 号 p. 230-245
詳細
1992 年 43 巻 3 号 p. 230-245
The purpose of this paper is to analyze the appropriate stabilization rules among a large number of countries. By decomposing the world system into one aggregate and N-1 difference systems, the paper calculates the desirable monetary rules in the N-country model. we find that the optimal monetary rule is a combination of the global monetary rule and the intervention rule. In general, the derived rule depends on the number of countries and the relative magnitudes of exogenous variances. The paper first analyzes the symmetric world economy and extends the results to the asymmetric world.
