Macroeconomic Interdependence in the Floating Exchange Rate System
研究了美国、英国、法国、德国、加拿大和日本六国的宏观经济环境，发现IS-LM模型预测的利率和股票回报效应成立，且各国受相似冲击，变量反应高度相关。
The macroeconomic environments of six countries (U.S., U.K., France, Germany, Canada and Japan) are studied using industrial production, money, short term interest rates, stock returns, and foreign exchange rates. First, the effects of IS and LM shifts on interest rates and stock returns in each country are estimated. The results show that the effects are exactly as predicted by the traditional IS-LM approach. In essence, when investments rise (as the IS curve shifts outward), interest rates will increase as the demand for money rises. Conversely, a similar shift in the LM curve, as money supply increases, will reduce interest rates when investments are held constant. Furthermore, the results show that all six countries are subject to similar shocks, and the responses of the macroeconomic variables are highly correlated. This may be due to the close relationship in international trade, to policy coordination and to the globalization of financial markets.