North-South Linkages and International Macroeconomic Policy

This volume brings together theoretical and empirical papers on fiscal, monetary and trade linkages between the North and South. The papers examine the use of macroeconomic models to simulate global and inter-regional interactions, and also explore the 'elasticities debate', relative price determination, convergence, and LDCs' adjustment to external shocks.

Researchers have begun to apply economic techniques initially developed to analyse the industrialised countries to analyse North-South interactions in the world economy. This volume, derived from a CEPR conference, brings together theoretical and empirical papers on fiscal, monetary and trade linkages between the North and South. The papers use the advances in the use of the major macroeconomic models to simulate global and inter-regional interactions, and to analyse the implications for the South of macroeconomic developments in the North. They also examine international policy questions in a genuinely global context, and consider the design of policy packages for the Third World (aid versus trade, growth-oriented adjustment) in an empirical context. This volume provides a useful overview of the flourishing research area relating to interactions between North and South, and highlights areas where future research is needed.