01755cas a2200241 a 4500 AALejournalIMF007737 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451943146 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Model Uncertainty. Learning, and the Gains from Coordination. Washington, D.C. : International Monetary Fund, 1988. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper considers gains from international economic policy coordination when there is uncertainty concerning the functioning of the world economy, but also learning about the 'true' model on the part of policymakers. The paper reports estimates of plausible alternative versions of a standard, two-country model. Activist policy (either coordinated or uncoordinated) may produce large welfare losses in the absence of learning, if policymakers believe in the wrong model; hence exogenous money targets and freely flexible exchange rates may be best. However, model learning (from observations on macroeconomic variables) causes coordinated policies to dominate activist uncoordinated policies or exogenous money targets. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1988/114 Full text available on IMF http://elibrary.imf.org/view/journals/001/1988/114/001.1988.issue-114-en.xml IMF e-Library