Document Type

Article

Publication Date

7-1998

Source Publication

Open Economies Review

Abstract

This paper surveys the literature that uses two-country models to analyze monetary and fiscal policy issues faced in interdependent economies. We discuss sources of structural interdependence that researchers typically include in these models. We describe many of the types of policy interactions that researchers have considered and summarize the key results that they have obtained. Finally, we briefly explain the limitations of two-country models and outline directions that this literature might usefully be extended.

Comments

Originally published in Open Economies Review, Volume 9, No. 3 (July 1998) online at: http://dx.doi.org/ 10.1023/A:1008220801959