Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
reaction of other countries - policy coordination a final problem associated with the policy coordination is that countries not involved in the
determine the term uncertainty - policy processwe know that uncertainty is one of main influencing factor in policy process and especially in
discuss about the inflationary bias in the economyas the costs are lower there is a greater incentive for the government to expand the money supply
enumerate about the short-run phillips curvediagrammatically the short-run phillips curve becomes flatter under coordination as opposed to no
inflationary biasanother potential problem with the coordination of monetary policy is that it can worsen the inflationary bias within each country
government optimal long run policy - nash equilibrium the governments optimal long run policy is associated with policy coordination at point c
explain the term- sustainabilityone of the major problems identified for international policy coordination is whether the agreed outcome is
problems of international policy coordinationthe previous section presented examples countries which were motivated to overcome pareto inefficiency
state the two alternatives of policy clusteringthat combines an element from each of these first two alternatives one might think of it as a set of
illustrate the example of the policy clusteringcountries democratize because of political or economic pressures within their country pressures that
what is policy clusteringadoption of policies is motivated by the observation that nation-states or some other jurisdictional unit choose similar
country strategy in harmonising national it is proposed that the omc should enhance the role of such country strategy in harmonising national and ec
what are the features of the omc processparticipation is also seen as a central feature of the omc process especially if it is to be extended beyond
implementation of open method of coordination it is emphasised that omc might contribute to the dissemination of best practice in the implementation
determine the areas of open method of coordination the eu has indicated its intention to employ the omc but so far there is little evidence of
what are the origins of open method of coordination the origins of the omc lie in the lisbon european council march 2000 which made its introduction
explain the open method of coordination there are at least five levels at which coordination can occur such as - international regional national
determine the focal point for coordinationthe focal point for coordination is point c which is the unique symmetrical pareto efficient outcome
what is expansionary biasthe domestic countrys bliss point b is now below the 45 degree line and the foreign countrys bliss point b1 above the 45
state in brief about the term - nash equilibriumfor the foreign country its reaction function cuts its indifference curves where they are vertical
explain in detail about the policy co-ordination of each countrywith no policy coordination each country will attempt to maximise its own welfare
define the term - bliss point a countrys bliss point is the outcome of monetary growth rates that gives that country its highest possible level of
growth rate of the money supply in the domestic economyon the horizontal axis is the growth rate of the money supply in the domestic economy m on the
what is recessionary biasto illustrate the possibility of recessionary bias we assume that both countries have two policy objectives but only one
state the international policy coordinationin an international context governments can in theory offset adverse spillover effects originating from