Abstract
This paper i concerned to identify some channels for the international transmission of traditional macro-policies. Drawing on a symmetric two-country extension of a Dornbusch 1976-style model the paper portrays different adjustment trajectories for selected variables under alternative assumptions about the wage/price process. Judged against a benchmark of flexible nominal and real wages, the presence of wage stickiness potentially implies servere short and long run deviations from equilibrium values.
| Translated title of the contribution | International Transmission of Macroeconomic Policies |
|---|---|
| Original language | Danish |
| Journal | Nationaløkonomisk tidsskrift |
| Volume | 127 |
| Issue number | 3 |
| Pages (from-to) | 356-370 |
| Number of pages | 15 |
| ISSN | 0028-0453 |
| Publication status | Published - 1 Jan 1989 |