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Open Economy Macroeconomics and Sanctions

In: Economic Sanctions

Author

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  • Robert Eyler

Abstract

One way to combine both the qualitative analyses that have been a constant throughout the sanction canon and quantitative tests of sanction effectiveness is to view sanctions as macroeconomic policy choices, analogous to monetary or fiscal policies. Recent advances in macroeconomics and international finance allow economists to potentially settle issues concerning sanction measurement and tracking sanction effects as for both the sender and target economies. This chapter extends the Obstfeld-Rogoff “Redux” (1995) model to provide a macroeconomic theory of sanctions.1 Their model and the extensions that followed became the “New Open Economy Macroeconomics,” called NOEM models from here.

Suggested Citation

  • Robert Eyler, 2007. "Open Economy Macroeconomics and Sanctions," Palgrave Macmillan Books, in: Economic Sanctions, chapter 0, pages 85-104, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-61000-2_5
    DOI: 10.1057/9780230610002_5
    as

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