Open-Economy Macroeconomics

1. Front Matter

   Pages i-xxxi

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2. Monetary Policy in Open Economies

   1. Front Matter

      Pages 1-1

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   2. Exchange-Rate Based Stabilisation under Imperfect Credibility

      • Guillermo A. Calvo, Carlos A. Végh

      Pages 3-28

   3. Devaluation, the Terms of Trade, and Investment in a Keynesian Economy

      • Michael Gavin

      Pages 29-45

   4. Sheet Anchors, Fixed Price Anchors and Price Stability in a Monetary Union

      • Andrew J. Hughes Hallett, David Vines, Myrvin Anthony

      Pages 46-69

   5. Foreign Supply Shocks, Wage Indexation and Optimal Monetary Policy

      • Franz X. Hof

      Pages 70-91

3. Domestic Adjustment to Foreign Shocks

   1. Front Matter

      Pages 93-93

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   2. The Impact of Fiscal and Productivity Shocks on the Natural Rate of Unemployment in a Two-Country World

      • Hian Teck Hoon, Edmund S. Phelps

      Pages 95-118

   3. Shocks and Aggregate Low Frequency Variability in a Small Open Economy

      • Christian C. Starck

      Pages 119-136

   4. Real Shocks and the Real Exchange Rate

      • Emil-Maria Claassen

      Pages 137-152

   5. Economic Adjustment and Growth in Small Developing Countries

      • DeLisle Worrell

      Pages 153-163

4. Labour and Capital Markets in Open Economies

   1. Front Matter

      Pages 165-165

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   2. Influence of Fiscal Shocks on Exchange Rate Volatility under Imperfect Capital Mobility and Asset Substitutability

      • Şaziye Gazioḡlu

      Pages 167-185

   3. Domestic and Foreign Shocks to Employment and Capital Accumulation in Germany

      • Oliver Landmann, Jürgen Jerger

      Pages 186-202

   4. Capital Taxation, Housing Investment and Wealth Accumulation in a Small Open Economy

      • Søren Bo Nielsen, Peter Birch Sørensen

      Pages 203-223

   5. Underemployment Equilibria in an Empirical Macromodel for Austria

      • Peter Neudorfer, Karl Pichelmann

      Pages 224-237

5. Interdependence of Open Economies

   1. Front Matter

      Pages 239-239

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   2. Measurement Errors and the Convergence Hypothesis

      • Edward E. Leamer

      Pages 241-256

   3. Three Parity Conditions in International Finance

      • Richard C. Marston

      Pages 257-271

   4. Endogenous Growth, Convergence and Fiscal Policies in an Interdependent World

      • George S. Alogoskoufis, Frederick van der Ploeg

      Pages 272-288

The integration of market economies is one of the most remarkable features of international economics, which has important implications for macroeconomic performance in open economies. Equally important is the declining relevance of the real versus the monetary theory dichotomy. These papers focus on those aspects of monetary policy which relate to credibility and non-neutrality; the domestic adjustment to foreign shocks; the interdependence of open economies and their strategic interactions. An important section is also devoted to the innovative modelling of exchange rate dynamics.

• growth
• Keynes
• macroeconomics
• monetary policy
• monetary union
• unemployment

• University of Technology, Vienna, Austria

  Helmut Frisch

• Department of Economics, Institute for Advanced Studies, Vienna, Austria

  Andreas Wörgötter

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