Macroeconomic Synchronization and Policy Coordination After Regional Economic Integration in the Americas
Bibliographic Data
| ID | 4902476 |
|---|---|
| Authors | Helen Chang (0000-0003-4422-3815, The Graduate Center, CUNY, corresponding author) |
| Year | 2011 |
| Volume | 1 |
| Issue | 1 |
| Publication date | 2011-09-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | IdeAs (JOURNAL) |
| Journal identifiers | ISSN: 1950-5701 • E-ISSN: 1950-5701 |
| Publisher | OpenEdition (PUBLISHER) |
| DOI | 10.4000/ideas.60 |
| OpenAlex | W1563626352 |
| Language | EN |
| References cited | 46 |
In spite of many significant differences between high-income and developing country partners in the North American Free Trade Agreement (NAFTA), business cycle synchronization has followed increased trade integration in the post-NAFTA period. There is also some preliminary support for some convergence between Dominican Republic-Central American Free Trade Agreement (CAFTA-DR) economies post-CAFTA-DR, although it is too soon to reach any significant conclusions. Macroeconomic synchronization has important implications for policy making because it indicates the need for and benefits from policy coordination. Policy coordination with high-income partners may benefit developing country partners by reducing macroeconomic volatility and increase stability, when macroeconomic variability is due to common shocks and not country-specific shocks. Idiosyncratic volatility would require monetary and fiscal policy autonomy rather than coordination. Examining policy coordination between NAFTA states and between CAFTA-DR members, I find little evidence for policy coordination before and after implementation of the FTA. For the developing partners in NAFTA and CAFTA-DR, even as trade integration shrinks the available policy options for member states, the costs of losing policy autonomy largely outweigh the benefits of coordination because of the idiosyncratic macroeconomic variability of the developing partners
Autonomy · Business cycle · Developing country · Economic growth · Economic integration · Economics · International economics · International trade · Macroeconomics · Political science · Regional Integration · Fiscal Policy and Economic Growth · Global Financial Crisis and Policies · Monetary Policy and Economic Impact · Finance
The economics of interdependence
Lessons of Massachusetts for EMU
Trade, Finance, Specialization, and Synchronization
Regional Trade Agreements and Foreign Direct Investment
The North American Economies After Nafta
The United States Financial Crisis and Its Nafta Linkages
Small States, Small Problems? Income, Growth, and Volatility in Small States
Intra-industry trade among developing countries
Intraindustry Specialization and the Gains from Trade
The Endogenity of the Optimum Currency Area Criteria
The Economics of Interdependence
Intra-Industry Trade
The Impact of Nafta on the United States
Business Cycles in International Historical Perspective
| Citation velocity | historical |
|---|---|
| Highly cited | No |