Macroeconomics of the World: Fiscal Policy and World Economic Growth under Global Integration

Author: [USA] Frankel et al. / Guo Qingwang / Liu Qian
Publisher:
Publish Date: 2005-02-01
Features: Since its opening in 1978, China has steadily risen in the global economy, accompanied by high growth and low inflation under a fixed exchange rate and a managed capital account. It has transitioned from being a "supporting player" to a "leading role." Through free trade, joining the WTO, and proposed capital account openness and renminbi convertibility, China is continuously accelerating its integration into the global economy. The macroeconomic impacts of these changes can be fully analyzed using the Mundell-Fleming framework, which is the main focus of this book. This book employs a cross-temporal analysis of trade balances to examine in detail the persistent increase in the U.S. current account deficit. The cross-temporal analysis approach of fiscal policy can be used to study the impact of expanding budget deficits on the rapid development of the Indian economy.