Answer to Question #69820 in Economics for Chandrani

Question

What are the problems of international policy coordination and how are they solved

Answer 1

Among the problems of international policy coordination are:
- uncertainty as to the correct initial position of the economy;
- uncertainty as to the correct objective;
- uncertainty as to the correct model linking policy actions to their effects in the economy.
It is possible to deal with them on the condition of policy-maker agreement about the correct action model.