Economic Aspects of North-South Interaction

"Economic Aspects of North-South Interaction" analyzes the macroeconomic aspects of North-South interaction. The events of the past two decades underscore the ever growing macroeconomic interdependence between national and blocs of nations. These events include the collapse of the Bretton Woods system, the oil shocks of the 1970s and the debts crisis of the 1980s. The recognition of international interdependence has led to a burgeoning literature on policy on co-ordination and other aspects on intra-Northern interdependence. North-South interactions take place in a highly asymmetric manner. The North wields the greater economic and bargaining power and may ignore the South in the formulation of its own macroeconomic policies, which are governed by Northern (and intra-Northern) considerations. However, these policies have spillover effects for the South and profoundly affect Southern income, terms of trade and future growth prospects.
"Economic Aspects of North-South Interaction" uses a variety of models to dichotomize the Northern and Southern macroeconomics along fix-price and flex-price lines respectively and to examine issues such as the terms of trade, protectionism, and the debt crisis the environment and the emergence of Eastern Europe into an already complicated international macroeconomic system.