TY - JOUR AU - Ishii,Naoko AU - McKibbin,Warwick J. AU - Sachs,Jeffrey TI - Macroeconomic Interdependence of Japan and the United States: Some Simulation Results JF - National Bureau of Economic Research Working Paper Series VL - No. 1637 PY - 1985 Y2 - June 1985 DO - 10.3386/w1637 UR - http://www.nber.org/papers/w1637 L1 - http://www.nber.org/papers/w1637.pdf N1 - Author contact info: Naoko Ishii E-Mail: nishii@am.catv.ne.jp Warwick McKibbin 3 Grey Street Deakin ACT 2600 AUSTRALIA E-Mail: wmckibbin@msgpl.com.au Jeffrey D. Sachs Center for Sustainable Development, The Earth Inst Columbia University 535 West 116th Street, MC 4327 New York, NY 10027 Tel: 212/854-8704 Fax: 212/854-8702 E-Mail: sachs@columbia.edu AB - In this paper we examine the macroeconomic interdependence of Japan and the U.S. using a medium-scale simulation model of the world economy. Our goal is to determine how shifts in macroeconomic policies in the U.S. or Japan affectthe other country as well as the rest of the world. In particular we examine the following three issues: (1) the likely macroeconomic ramifications for the U.S., Europe and Japan of significant budget cuts in the U.S.; (2) the macroeconomic implications of a protectionist tariff imposed by the U.S.; and (3) the scope for policy coordination among the U.S., Japan and Europe. ER -