Regional integration in Latin America and dynamic gains from macroeconomic cooperation

Includes bibliography

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Detalles Bibliográficos
Autores principales:	Escaith, Hubert, Paunovic, Igor
Otros Autores:	NU. CEPAL. División de Desarrollo Económico
Formato:	Texto
Lenguaje:	English
Publicado:	ECLAC 2014
Materias:	COOPERACION REGIONAL INTEGRACION ECONOMICA MACROECONOMIA TEORIA DE LOS JUEGOS SISTEMAS MONETARIOS RECURSOS FINANCIEROS ECONOMIC INTEGRATION GAME THEORY MACROECONOMICS REGIONAL COOPERATION MONETARY SYSTEMS FINANCIAL RESOURCES
Acceso en línea:	http://hdl.handle.net/11362/5388
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spelling	oai-11362-53882020-09-28T16:15:13Z Regional integration in Latin America and dynamic gains from macroeconomic cooperation Escaith, Hubert Paunovic, Igor NU. CEPAL. División de Desarrollo Económico COOPERACION REGIONAL INTEGRACION ECONOMICA MACROECONOMIA TEORIA DE LOS JUEGOS SISTEMAS MONETARIOS RECURSOS FINANCIEROS ECONOMIC INTEGRATION GAME THEORY MACROECONOMICS REGIONAL COOPERATION MONETARY SYSTEMS FINANCIAL RESOURCES Includes bibliography The objective of this paper is to present and illustrate from a game-theory perspective, the main concepts and challenges behind macroeconomic policy cooperation in Latin America and the Caribbean. Examples are taken from fiscal, monetary and exchange rate policies in a regional framework. Translating these concepts and examples into the economics of sub-regional integration, when countries have increasing commercial and financial relations, interact frequently and cannot escape from the consequences their decisions have on their partners, the paper contend that entering into a cooperative dynamic will be beneficial for all cooperative participants. Moreover, it is shown that because the welfare gains from regional cooperation are endogenous, cooperation will eventually become stable, even in the presence of a Prisoner's Dilemma. The concepts of static games are initially introduced to identify some of the costs and benefits of regional macroeconomic coordination. The arguments are developed using the example of tax and subsidy policies and the competition to attract foreign investment. Then, the document incorporates the dynamic aspects of cooperation, in particular the notion of time consistency. A review of the costs and benefits of regional coordination of macroeconomic policies is presented, from a dynamic point of view. The notion of endogenously determined criteria to form an optimal currency area is then introduced. We demonstrate that even when initial conditions are less than optimal, macroeconomic policy coordination within sub-regional integration schemes can lead to a stable cooperative situation. Nevertheless, at the initial stage of coordination, the benefits are uncertain and cooperation is unstable; consequently a formal institutional setting is necessary to start and coordinate the cooperative process, at least in its earlier stage. 2014-01-02T16:11:50Z 2014-01-02T16:11:50Z 2003-07 Texto Documento Completo 9211214114 http://hdl.handle.net/11362/5388 LC/L.1933-P en Serie Macroeconomía del Desarrollo 24 application/pdf AMERICA LATINA LATIN AMERICA ECLAC
institution	Cepal
collection	Cepal
language	English
topic	COOPERACION REGIONAL INTEGRACION ECONOMICA MACROECONOMIA TEORIA DE LOS JUEGOS SISTEMAS MONETARIOS RECURSOS FINANCIEROS ECONOMIC INTEGRATION GAME THEORY MACROECONOMICS REGIONAL COOPERATION MONETARY SYSTEMS FINANCIAL RESOURCES
spellingShingle	COOPERACION REGIONAL INTEGRACION ECONOMICA MACROECONOMIA TEORIA DE LOS JUEGOS SISTEMAS MONETARIOS RECURSOS FINANCIEROS ECONOMIC INTEGRATION GAME THEORY MACROECONOMICS REGIONAL COOPERATION MONETARY SYSTEMS FINANCIAL RESOURCES Escaith, Hubert Paunovic, Igor Regional integration in Latin America and dynamic gains from macroeconomic cooperation
description	Includes bibliography
author2	NU. CEPAL. División de Desarrollo Económico
author_facet	NU. CEPAL. División de Desarrollo Económico Escaith, Hubert Paunovic, Igor
format	Texto
author	Escaith, Hubert Paunovic, Igor
author_sort	Escaith, Hubert
title	Regional integration in Latin America and dynamic gains from macroeconomic cooperation
title_short	Regional integration in Latin America and dynamic gains from macroeconomic cooperation
title_full	Regional integration in Latin America and dynamic gains from macroeconomic cooperation
title_fullStr	Regional integration in Latin America and dynamic gains from macroeconomic cooperation
title_full_unstemmed	Regional integration in Latin America and dynamic gains from macroeconomic cooperation
title_sort	regional integration in latin america and dynamic gains from macroeconomic cooperation
publisher	ECLAC
publishDate	2014
url	http://hdl.handle.net/11362/5388
work_keys_str_mv	AT escaithhubert regionalintegrationinlatinamericaanddynamicgainsfrommacroeconomiccooperation AT paunovicigor regionalintegrationinlatinamericaanddynamicgainsfrommacroeconomiccooperation
_version_	1718438238471847936

Regional integration in Latin America and dynamic gains from macroeconomic cooperation

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