Government Expenditure and the strongBalancestrong of Payments Author(s).PDF

Title Diplomacy Author(s)Shibuya, Hiroshi Citation Issue Date1996-11 URL /10252/4213 Rights and Economie Diplomacy Hireshi Shibuya 1996 November Economics Department- of of Compterce Otaru University i by Hiroshl Shlbuya Departri3ent of Ecenomics Otaru Univer$ity of Commerce November1996 opinions rests exclusively with the author. Absttact and 1990s. JEL C/assification: E6 F4 . 1 lntroduction 1 international perspectives. diplomacy toward Japan in the 1980s and 1990s. 2 coordination of fiscal policies. 3 to prove the following proposition: potential Ievel of national income in the long run. 4 perspectives.3 effective reform very difficult (Roberti, 1989). empirical evidence that support Propositlon 1. macroeconomlcs ln an open economy. 5 followiBg relationships: 6 of each country as given by the world interest rate. d(ca)/dg = ca.(.) de/dg = - 1 (8) 7 the validity of the conventlonal relationship.