Recent years have witnessed substantial progress in global macroeconomic modeling as researchers have applied techniques developed to analyze North-South interactions. This volume, derived from a CEPR conference held in Oxford in April, 1993, brings together theoretical and empirical papers on fiscal, monetary and trade linkages. They consider recent progress in the "elasticities debate," the determination of relative prices, convergence and "new growth theory," and LDCs' adjustment of external shocks. The volume also includes papers reporting a variety of simulations of global and inter-regional interactions using the major current macroeconomic models.
List of figures; List of tables; Preface; List of conference participants; 1. North–South linkages and international macroeconomic policy: an overview David Vines and David Currie; Part I. Trade Linkages: The Elasticities Debate: 2. NIE export performance revisited: the estimation of export demand elasticities, and the role of product differentiation and growth Vito Antonio Muscatelli; 3. Export growth and the terms of trade: the case of the curious elasticities James Riedel and PREMACHANDRA ATHUKORALA; Part II. Trade Linkages: Commodities: 4. Economic activity and commodity prices: theory and evidence Annalasia Cristini; Discussion Vito Antonio Muscatelli; Part III. Convergence and Growth Linkages: 5. Convergence and growth linkages between North and South John F. Helliwell and Alan Chung; Discussion Fabrizio Zilibotti; Part IV. Open Economy Macro and Adjustment in the South: 6. Analysing external adjustment in developing counties: a macroeconomic framework Chris Allen, T. G. Srinivasan and David Vines; 7. Dynamic response to external shocks in Classical and Keynesian economies Klaus Schmidt-Hebbel and Luis Serven; Discussion David Currie; Part V. Global Scenarios: 8. Macroeconomic effects on developing countries of shocks in the OECD: evidence from multicountry models Ralph C. Bryant and Warwick J. McKibbin; 9. Macroeconomic linkages between the OECD and the Asia-Pacific region Warwick J. McKibbin and Mark W. Sundberg; 10. MULTIMOD simulations of the effects on developing countries of decreasing military spending Tamim Bayoumi, Daniel Hewitt and Steven Symansky; 11. Effects of a rise in G-7 real interest rates on developing countries Christian E. Petersen and T. G. Srinivasan; 12. Quantifying North–South interdependencies with MCM simulation Jaime Marquez; Discussion Beatriz Armendariz de Aghion; 13. The consequences of US fiscal actions in a global model with alternative assumptions about the exchange regime in developing countries Ralph C. Bryant and Charles Chukwuma Soludo; Index.