TY  - JOUR
AU  - Frenkel,Jacob A.
AU  - Goldstein,Morris
AU  - Masson,Paul R.
TI  - Simulating the Effects of Some Simple Coordinated versus Uncoordinated Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2929
PY  - 1989
Y2  - April 1989
UR  - http://www.nber.org/papers/w2929
L1  - http://www.nber.org/papers/w2929.pdf
N1  - Author contact info:
Jacob Frenkel
Dr. Jacob A. Frenkel
Chairman, JPMorgan Chase International
270 Park Ave 46th floor
New York, NY 10017
Tel: +1 212 270 2393
Fax: +1 212 270 2397
E-Mail: jacob.frenkel@jpmchase.com

Morris Goldstein
Institute for International Economics
1750 Massachusetts Avenue, NW
Washington, DC  20036-1903
E-Mail: mgoldstein@iie.com

Paul Masson
Rotman School of Management
105 St. George St.
University of Toronto
Toronto, ON M5S 3E6
Canada
Tel: 416-946-0434
Fax: 416-978-5433
E-Mail: paul.masson@rotman.utoronto.ca
AB  - Effects of different policy rules are simulated: uncoordinated targeting of the money supply or nominal income, use of monetary policy to achieve coordinated targets for nominal or real exchange rates, and the use of monetary and fiscal policies to hit targets for internal and external balance. The following conclusions emerge: rules which performed best for some shocks performed poorly for others; monetary policy was ineffective in limiting movements in real exchange rates; unconstrained use of fiscal policy was quite powerful in influencing real variables; and dynamic instability was a potentially serious problem. Robustness to different specifications and to constraints on instruments remains to be examined.
ER  -