This book covers two years of research activities associated with Project LINK, which is based on a model of the world economy, covering 79 countries or regional groupings of countries. Papers dealing with interesting thematic issues were carefully selected and expanded into full articles. The subjects studied by various LINK participants for reporting at annual meetings include exchange rate systems, international investment, environmental protection, international economic institutions, LINK system improvements, and international economic policy. As always, there are contributions dealing with methodological advances for world modeling.
Part 1 European issues: the implications of a single European currency and monetary policy - prospects and policy issues, N.C. Garaganas; the degree of convergence within the EMS, S.G. Hall et al; is the Bundesbank different from other central banks? M. Funke and S. Hall; testing for purchasing power parity and interest rate parities on Norwegian, A.S. Jore et al; large econometric models for the period of transition, W. Welfe. Part 2 Environmental issues: international aspects of carbon taxation, R.K. Kaufman and P. Pauly; long-term impacts of carbon taxes on global environment and growth, S. Shisido; macroeconomic impacts of C02 reduction policies, H. Glueck and S.P. Schleicher. Part 3 Development economics: industrial policy in Korea -past experiences and future directions, O.S. Hyun; south-north investment by developing countries in the EC - a sign of the emergence of new investors, S. Page; economic co-operation in Asia -NIEs and ASEAN, M. Toida. Part 4 Statistical and econometric methodology: the treatment of expectations effects in large scale models, S. Hall and A. Garratt; some comments and proposals on the statistical infrastructure and regional information system for the Black Sea Economic Cooperation (BSEC) countries, O. Guvenen; a monthly econometric model for Turkey, January 1981 - June 1991, S. Ozmucur; SAM-based short-term forecasting model for a small developing of oil economy -the congo, J.K. Thisen; pricing to market - exploring new export price equations for the LINK model, B. Gangnes et al.