For a long time, China’s macroeconomic regulation model has been characterized by focusing on regulating domestic equilibrium. However, as the international economic situation changes and China's participation in economic globalization deepens, the traditional regulation model will be strongly impacted by the external economy. After analyzing various theories on government macroeconomic regulation under the conditions of economic globalization, this article puts forward the view that China should choose a macroeconomic regulation model that pays attention to both internal and external aspects and has a dual balance. It also believes that in the construction of the specific model, the RMB should be actively used. The role of floating exchange rates in stabilizing the international balance of payments, while focusing on the use of monetary policies with comparative advantages in policy effects under floating exchange rates to achieve domestic equilibrium and strengthen the independence of the central bank; follow the relevant rules of the WTO and strengthen the government's role in supply policies, Build international competitiveness based on knowledge and actively participate in international economic policy coordination. Keywords: Economic globalization, macroeconomic regulation, external balance, internal balance. After more than 20 years of reform and opening up, the domestic and international environment faced by the Chinese economy has undergone tremendous changes. First of all, driven by economic globalization and computer communications and network technology, the markets of various countries are further integrated, international competition continues to intensify, and the world economic structure is re-adjusted. Secondly, from the domestic situation, there has been a fundamental change in the overall supply and demand relationship. The economy has begun to shift from shortage to relative surplus, from a seller's market to a buyer's market, and from inflation to deflation. Obviously, under this background, the government's choice of macroeconomic regulation model will increasingly become an important factor affecting economic growth. 1. China’s macroeconomic operation in the process of economic globalization (1) The process and trend of China’s economic participation in globalization The two decades of reform and opening up have been a period of rapid economic development in China, and it is also a period in which China’s economy has joined the wave of globalization that is accelerating. China's opening up to the outside world has adopted step-by-step reform measures in marketization, trade and investment liberalization, etc., and has achieved remarkable results in expanding import and export trade, absorbing foreign direct investment, and expanding the opening up of coastal areas, and has promoted the rapid development of the economy. increase. According to the China International Trade Statistical Yearbook, China has absorbed a total of US$265.6 billion in foreign direct investment in the past 20 years. Especially since the 1990s, foreign direct investment has accounted for about 10% of the total fixed asset investment in the whole society. According to expert estimates, capital and labor investment contributed 65% to China's economic growth in the 1990s. Based on this calculation, the direct contribution rate of foreign investment to GDP growth is about 6%. Obviously, international factor mobility greatly improves domestic productivity. According to relevant statistics, the development of foreign economic and trade in the 1990s made an important contribution to the average GDP growth of 10.7% by expanding investment and improving factor productivity. Since the implementation of the policy of reform and opening up, my country's international balance of payments has undergone great changes in both scale and composition. In terms of revenue and expenditure, the cumulative import and export volume from 1979 to 2000 was approximately US$3 trillion, more than 15 times that of the first 29 years after the founding of the People's Republic of China. my country's trade position in the world's trade has increased from 28th in 1980 to 7th in 2000. With the expansion of the balance of payments, the country's total foreign exchange reserves have continued to rise, reaching US$151.3 billion at the end of 2000. In the past 20 years, in addition to the two traditional items of import and export and overseas remittances, other items such as tourism, transportation, service contracting and capital items have increased sharply, with the growth of capital items being particularly obvious. As China's economic participation in globalization continues to deepen, the proportion of foreign-related economic activities in national economic activities has greatly increased. Taking the ratio of total import and export trade to GDP as an example, it was 25.6% in 1988 and rose to about 40% in 2000. Participating in economic globalization has enabled China's national income to grow rapidly, occupying a place in international competition, and the gap with developed countries is gradually narrowing. (2) China’s macroeconomic regulation practice China’s macroeconomic regulation in the true sense began after the introduction of the reform plan to build a socialist market economic system with Chinese characteristics in 1992. To build a socialist market economic system is to give full play to the fundamental role of the market mechanism in allocating social resources, and at the same time, the state adopts macro-control economic policies to assist and guide it. The characteristic of this kind of control that is different from previous planning methods is that it is Instructive rather than prescriptive. The construction of the domestic market economic system has gradually integrated its economic operation mechanism with the international market, and its foreign economic activities have become increasingly active, and its participation in economic globalization has continued to deepen. Facing the Chinese economy that is constantly integrating into the wave of economic globalization, China's macroeconomic policies in recent years have mainly focused on the pursuit of domestic balance. Obviously, this is due to the fact that China's market economy construction is still in the stage of gradual improvement and the domestic macroeconomic Determined by the characteristics of its operation, this macroeconomic policy choice has indeed played a more positive role and achieved domestic economic growth more effectively. Overall, China's macroeconomic operations since its reform and opening up have maintained a high-speed growth of 10.7% per year, while also showing obvious cyclicality. The market shock that occurred in the autumn of 1988 and the widening supply gap in 1989 led to a rapid economic decline from 1989 to 1991.

In 1991, the economy reached a low point and slowly recovered. In 1992, a new round of rapid economic growth began, and the momentum was particularly fierce. However, in 1994, the most serious inflation since China's reform occurred, and the national retail price of goods increased by 21.7%. , consumer prices rose by 24.1%. After mid-1993, the central government began to put forward the slogan of strengthening macro-control and implemented economic policies to curb economic overheating. In 1996, it successfully achieved a soft landing of the economy, effectively reducing the inflation rate and keeping the entire national economy stable. Maintained the momentum of rapid growth. After 1997, although China's economy still maintained a high growth momentum, the growth rate has slowed down, currently maintaining around 7%. At the same time, domestic effective demand has gradually turned to insufficient, and an unprecedented level of currency has appeared since the reform and opening up. In a state of austerity, prices experienced negative growth. This situation has continued to this day, but it has begun to show signs of rebound. The high inflation rate of over 20% in 1988 and 1989 led to a nationwide panic buying trend. In response to this situation, the central government implemented severe austerity policies in the second half of 1989, that is, comprehensively tightening fixed asset investment. At the same time, it tightened credit vigorously. With the cooperation of tight fiscal policy and monetary policy, the economy achieved a hard landing, which caused the economy to fall from overheating to overcooling. After 1992, a new round of reform and opening up brought China's economy into an unprecedented period of growth, but at the same time it caused the problem of overheating. In response to this investment overheating and high inflation, the State Council implemented a double-tightening fiscal policy and monetary policy. , but not full austerity. This fiscal tightening is not aimed at the tightening of all fixed asset investments, but only for the tightening of real estate and development zone investments that trigger investment impulses. The monetary policy is not a comprehensive credit tightening, but only targeted at the credit tightening of random fund-raising and borrowing. Normally The supply of funds for production and construction has not been affected, effectively achieving a soft landing for the macro economy. After 1997, China's macroeconomy showed signs of deflation and insufficient effective demand. In response, the State Council adopted active fiscal policies and prudent monetary policies, using policy tools such as increasing government bonds and lowering interest rates to promote the growth of domestic effective demand and the improvement of prices. The rebound has already shown positive results. While the domestic macro-economy shows cyclical fluctuations of rapid growth, China's external economy has always been in a favorable and unbalanced state of surplus. The rapid development of the domestic market economy and the country's policy preference for exports and foreign investment have caused exports and foreign direct investment to increase year by year. At the same time, although China's external economy has always been in an imbalanced state of surplus, the surplus has not caused pressure for RMB appreciation. On the contrary, over a long period of time, the nominal exchange rate of RMB has depreciated, which has promoted the increase in exports. , Facts have proved that the surplus is beneficial to the sustained growth of the domestic macro economy. The reason why the RMB exchange rate shows the above characteristics is determined by the effect of the integration of China's domestic market system with the international market system. In the past, the RMB has been in a state of overvaluation of the nominal exchange rate. In 1996, the RMB exchange rate system was reformed to implement a nominal exchange rate system. The managed floating exchange rate system and the bank foreign exchange settlement and sales system have accelerated the marketization process of the RMB exchange rate. The nominal exchange rate, which has been overvalued, has continued to depreciate and align with the real exchange rate, making China's foreign economy always in a favorable surplus state. At the same time, the surplus has not This creates pressure for RMB appreciation. From the above analysis, we can see that in the process of marketization of the RMB exchange rate, the external economy has shown a favorable imbalance of surplus. Therefore, the central government does not need to rush to change this situation, but can concentrate on dealing with the domestic economic cycle. Therefore, In the process of participating in economic globalization in the 1990s, China's macroeconomic policy practice clearly focused on regulating the domestic economic cycle, and this strategic choice effectively stabilized the domestic economic cycle and maintained stability. Rapid economic growth. (3) The challenges of economic globalization to China's macroeconomic regulation. For countries participating in economic globalization, the connection with the external economy has a significant impact on the operation of the country's economy. These impacts are manifested in the fact that while economic globalization has provided many favorable conditions for the country's economy that were not available under closed conditions, it has also had an impact on economic stability and development. Because under the conditions of economic globalization, the government's economic regulation must not only achieve the stability and development of the domestic economy, but also determine the reasonable degree of economic openness, which will inevitably create conflicts between internal balance and external balance coordination. Moreover, with the development of economic globalization and the further improvement of China's economic openness, the original macro-control model that only focused on solving domestic macroeconomic balance problems will inevitably be impacted by the economic operation mode under an open economy, causing conflicts between internal and external balances. For example, changes in economic conditions, the transmission of international economic fluctuations, and the speculative impact of international hot money, etc., can all cause conflicts between internal equilibrium and external equilibrium, and the challenges we face are severe. First of all, with the deepening of my country's marketization, the market adjustment of the RMB exchange rate has gradually improved, and the nominal exchange rate of the RMB has been aligned with the actual exchange rate. The huge surplus in the balance of payments will inevitably create pressure for the appreciation of the RMB, and appreciation is important for stimulating domestic economic growth. The export contribution is extremely unfavorable. At the same time, export fluctuations will also affect domestic effective demand, which may further aggravate the current disadvantageous situation of insufficient domestic effective demand.

Although the surplus increases the amount of international reserves and leads to the expansion of domestic credit through the amplification of the central bank's base currency, which can promote the growth of domestic demand to a certain extent, the surplus will inevitably worsen in the context of economic overheating and inflation. Domestic economic conditions, so the government must make appropriate policy adjustments in terms of surplus and exchange rate. Secondly, as the Internet economic bubble burst, the U.S. economy continued to slow down. In the first quarter of 2001, the U.S. GDP growth rate was 0%. Market confidence is low, and investment and consumption are sluggish. The Japanese economy, the Eurozone economy, my country's neighboring countries and the Asian region's economy have been affected by the sharp decline in the US economy, and they all show obvious signs of economic recession. Recently, the International Monetary Fund once again lowered the global economic growth rate in 2001. It is expected that the global economic growth rate in 2001 will be 3.4%, which is lower than the 3.5% originally expected by the IMF. The United Nations predicts that the global economic growth rate will drop from 4% in 2000 to 2.4% in 2001, and that of developing countries will drop from 5.7% in 2000 to 4.4% in 2001. The growth in world trade volume The speed will drop to 6% from 12% in 2000. The slowdown in world economic growth will put tremendous pressure on my country's exports and the trade surplus will be significantly reduced. my country's export markets are mainly the United States and Japan, whose demand contraction is bound to have a greater impact on my country's exports. At the same time, the currency depreciation of neighboring Asian countries is also very detrimental to the growth of my country's exports. The possibility of a trade deficit cannot be ignored. If a deficit occurs, adjusting the deficit by tightening demand will inevitably aggravate the shortage of domestic effective demand. At the same time, because China has been in a favorable position of running a surplus in recent years, the government lacks policy experience in adjusting the deficit. Therefore, adjusting the balance of payments deficit will be an issue that cannot be ignored in macroeconomic control under China's open economy. Third, under the conditions of economic globalization, the information industry represented by network technology has developed rapidly on an international scale, which has greatly increased the amount, accuracy and speed of information. Under these conditions, micro-economics such as households and enterprises Economic agents have stronger information processing capabilities, and they are more able to make judgments and predictions about things more accurately. Therefore, the diffusion of information technology under economic globalization has changed the expectation model of microeconomic subjects. Although this change will not make the expectations of microeconomic subjects completely rational, the gradual advancement of the expectation model toward rationality will inevitably have a negative impact on the government. have an impact on the effects of macroeconomic policies. In some extreme cases, the government's macroeconomic policies may be completely ineffective due to the reactions of microeconomic entities. In addition, in the case of a huge deficit and a fragile domestic financial system, the expected self-sustainability may lead to a currency crisis with a massive loss of international reserves and serious capital flight. In a currency crisis, market speculators' depreciation expectations show a vicious cycle due to the role of the nominal interest rate mechanism, which eventually leads to the cost of government intervention becoming so huge that the government gives up its intervention in the foreign exchange market and exchange rate, and a currency crisis breaks out. From this dynamic game process between speculators and the government, it is not difficult to see the impact and influence of the expected model on government intervention policies. Therefore, in the above two possible situations, the government must adjust the macroeconomic policies affected by expectations. Fourth: China is about to join the WTO. However, the multilateral rules of the WTO have certain constraints on the methods and policies of countries to achieve internal and external balance. First of all, the WTO has restrictions on the regulation of the international balance of payments, and direct control measures such as emergency restrictions on imports are generally not allowed. Measures that arbitrarily increase tariffs to restrict imports are restricted, and direct subsidies are prohibited in principle. When using measures such as exchange rates and foreign exchange controls to adjust the balance of payments, they must also comply with WTO rules. In addition, WTO rules also have certain requirements and specifications for the implementation of domestic finance, taxation, finance, science and technology, environmental protection, human resources development, regional and industrial policies. Therefore, after joining the WTO, China's main means of macroeconomic regulation, including fiscal policy, monetary policy and direct administrative measures, will be directly or indirectly constrained by WTO rules. Therefore, after joining the WTO, the government must make macroeconomic adjustments. The model should be changed to adapt to the requirements of these rules and constraints. Fifth: In the process of economic globalization, improving international competitiveness has always been the direction of efforts of all countries. The accumulation of knowledge and technology and the improvement of international competitiveness in developing countries are achieved through inducement mechanisms. The most common characteristic of countries that follow this technological trajectory is that their accumulation of knowledge and technology is gradual and slow, and their international competitiveness is formed through a long period of accumulation in technological innovations. Today, as international competition becomes increasingly fierce and the global knowledge stock expands rapidly, international competition has shifted to knowledge-based international competitiveness. If China wants to build knowledge-based international competitiveness, it cannot go through a long induced change mechanism. This must be achieved through a transformation of the economic growth model, from a factor input-based growth model to a factor-efficiency growth model that values ??technology, education, and human capital cultivation. At the same time, the government should create an institutional foundation to promote knowledge accumulation and technological innovation in terms of macroeconomic policies and economic systems, and shape the operating mechanisms for research and development, knowledge accumulation, and technological innovation from different levels.

It can be seen that the competition of international competitiveness based on knowledge poses a challenge to the government's macroeconomic regulation model under the conditions of economic globalization. China's macroeconomic regulation must have an incentive mechanism to promote knowledge accumulation and technological innovation. 2. Theoretical analysis of government macroeconomic regulation under the conditions of economic globalization. Under the conditions of economic globalization, countries are faced with the problem of coordination between the internal stability and reasonable openness of their own economies, that is, how to achieve internal balance and external balance. Balanced consensus will be the government's main macroeconomic control goal. At this time, when the government takes measures to strive to achieve a certain equilibrium goal, this measure may simultaneously cause the improvement of another equilibrium goal, and may also cause interference or damage to another equilibrium goal. In this way, within the specific range of open economic operation , there will be a situation where it is difficult to balance internal and external balance. The continuous deepening and development of economic globalization will also prompt the government to continuously improve and develop the theoretical research on macroeconomic policy regulation under an open economy. The emergence of theories such as Tinbergen's rule on government matching and efficient market classification of government assignments has developed the government's macroeconomic regulation theory under an open economy. The policy goals of an open economy include both internal balance and external balance. Therefore, the government cannot still simply use policies to regulate total social demand as it does under closed economy conditions. In order to avoid conflicts between internal and external equilibrium, the government's macroeconomic regulation under open economic conditions must have new ideas. Among the plans to use policy matching to achieve internal and external equilibrium, the combination of fiscal policy and monetary policy proposed by Mundell and the combination of expenditure policy and exchange rate policy proposed by Swann are the most influential. Mundell used budget as the representative of fiscal policy and money supply as the representative of monetary policy to discuss their matching methods. Mundell believed that because fiscal policy has a comparative advantage in coordinating domestic equilibrium, and monetary policy has a comparative advantage in coordinating external equilibrium, the government should use fiscal policy to regulate internal equilibrium issues and monetary policy to regulate external equilibrium issues. Swan discusses the government's policy coordination for internal and external equilibrium through the combination of expenditure switching policies and expenditure increase and decrease policies. Swan's analysis believes that the government's expenditure increase or decrease policy can significantly affect the level of domestic expenditure, and the appreciation or depreciation of the domestic currency's real exchange rate can significantly affect the international balance of payments. Swan believes that expenditure increase and decrease policies should be used to deal with domestic equilibrium problems, while the task of external equilibrium should be handed over to expenditure conversion exchange rate policies. Although Mundell and Swann's plans are based on a rather simplified treatment of the actual economy, their theoretical analysis and policy propositions are of great reference significance and significance for the choice of government macro-control models under open economic conditions. Functional. Achieving balance of international payments is the main goal of the government's external equilibrium regulation. The earliest international balance of payments adjustment theory can be traced back to Hume's price-cash flow mechanism theory in the 18th century. Under the conditions of economic globalization and on the basis of the continuous deepening of microeconomics and macroeconomics research, numerous international balance of payments theories have emerged. branch regulation theory. The elastic analysis method of international balance of payments adjustment was developed by Joan Robinson on the basis of Marshallian microeconomics and partial equilibrium analysis. It focuses on the conditions for successful currency devaluation and its impact on the balance of payments and terms of trade. The absorption analysis method of international balance of payments adjustment is based on Keynesian macroeconomics, starting from Keynes's national income equation, focusing on examining the impact of total income and total expenditure on the international balance of payments. This theoretical analysis believes that when the national income is greater than the total domestic absorption, the international balance of payments is a surplus; when the national income is less than the total absorption, the international balance of payments is a deficit. Accordingly, the government's adjustment of surplus and deficit should focus on adjusting the level of domestic absorption, using expansionary policies to adjust surpluses and contractionary policies to adjust deficits. The monetary analysis method of international balance of payments adjustment was proposed by Harry Johnson and Jacob Franco on the basis of monetarist theory. This theory believes that the balance of payments is a monetary phenomenon. The balance of payments deficit is actually a country's domestic nominal money supply exceeding the nominal currency demand. Therefore, the adjustment of the deficit mainly lies in the implementation of a tight money supply policy. The core of the policy proposition of the monetary theory is that when the balance of payments is in deficit, the government should tighten domestic credit. The structural theory of international balance of payments analysis believes that balance of payments deficits can be caused by insufficient supply, and long-term insufficient supply is often caused by economic structural problems, such as aging economic structure, single economic structure, and backward economic structure. If the imbalance in the international balance of payments is caused by the economic structure, then the focus of adjustment policies should be on supply policies that improve the economic structure and promote economic development. Under the conditions of economic globalization, when the government adjusts the international balance of payments to achieve external equilibrium, it should flexibly use the above-mentioned theories to analyze specific problems, absorb the correct parts of the above-mentioned theories, abandon the unreasonable elements, and use them flexibly and comprehensively, and strive to make The government's decision-making and analysis are realistic. Fiscal policy and monetary policy are the most important policy tools for government macroeconomic control. Under the conditions of economic globalization, their economic mechanisms and policy effects have undergone very significant changes compared with the situation under closed conditions. The main tool for analyzing the effectiveness of fiscal policy and monetary policy under the conditions of economic globalization is the Mundell-Fleming model. It is based on the standard IS--LM model. For small open countries, it is assumed that aggregate demand is insufficient and the international The flow analysis method was used for capital flows.

This theory believes that under a floating exchange rate, monetary policy is generally more effective. A country can independently control the money supply, and monetary policy will strengthen its effect through its impact on the exchange rate. Taking expansionary monetary policy as an example, it will bring about an increase in output and a decrease in interest rates, both of which will lead to a deterioration in the international balance of payments and depreciation of the domestic currency exchange rate, which in turn strengthens the expansionary effect of monetary policy on the economy. . At the same time, this theory believes that under a floating exchange rate system, fiscal policy is relatively ineffective, although when there is no international capital flow, fiscal policy is very effective. In quite a few cases, changes in interest rates caused by fiscal policy will cause adjustments in the exchange rate, thereby weakening its policy effect. Taking fiscal expansion policy as an example, it will cause an increase in interest rates and improve the international balance of payments. The surplus will bring a premium to the domestic currency exchange rate, thereby weakening the expansionary effect of fiscal policy on the economy. The Mundell-Fleming model demonstrates the different comparative advantages of fiscal policy and monetary policy in an open economy, which is of great significance to the government's policy matching. In recent years, the model has been further improved in many aspects, but the main theoretical conclusions have not changed much. From this theory, we can see that under a floating exchange rate system, a country can more proactively pursue specific policy goals. This analysis result is also an important reference for the choice of a country's exchange rate system under the conditions of economic globalization. of value. Under the conditions of economic globalization, the advancement of the expectation model of microeconomic entities towards rational expectations will affect the effect of government macroeconomic policies to a certain extent. Under the conditions of completely rational expectations, the effects of macroeconomic policies chosen by the government will be completely offset by the behavior of microeconomic subjects based on rational expectations. This constitutes a dynamic inconsistency between the government and the public in macroeconomic issues. The key to solving dynamic inconsistencies in the theory of macroeconomic regulation is for the government to establish and maintain the credibility of implementing macroeconomic policies. The government promises to follow certain rules in policy formulation, thereby improving the expectations of microeconomic entities with its credibility, and shifting from a dynamically inconsistent non-cooperative game between the government and the public to a dynamically consistent cooperative game. Regarding how to establish the credibility of the government, there are specific theories such as entrustment model, contract model and legal model. The core issue in all models is how to design incentive mechanisms to encourage governments to maintain the credibility of their policies. Among these designs aimed at finding incentive mechanisms that prompt the government to pursue policy credibility to improve the expectations of microeconomic entities, the introduction of game theory plays a key role. The game theory approach emphasizes the key role of expectations and the incompleteness of the concept of rational expectations. There are many possible situations in reputation gaming, so for the government, when formulating policies, it is necessary to select from these multiple equilibria those equilibrium methods that are likely to produce policy effects in practice. If the government can effectively improve the credibility of its policies, it will affect the confidence of speculators and thus prevent currency crises. Therefore, the credibility of macroeconomic policies has been impacted by changes in the expected patterns of microeconomic entities caused by economic globalization, and the government must choose a macroeconomic regulation model. Under the conditions of economic globalization, the government must not only conduct economic regulation in terms of aggregate demand to achieve internal and external balance in the economy, but also effectively use supply policies to regulate the total supply of an open economy. The theoretical focus on supply policy is currently mainly reflected in the discussion of the government's science and technology policy, industrial policy and institutional innovation policy. Under the conditions of economic globalization, knowledge plays a core role in economic growth, and international competition is mainly based on knowledge. Therefore, the government's science and technology policy should not only promote scientific and technological progress and improve management levels, but also And more importantly, it should play an active role in strengthening investment in human capital. The core of the government's industrial policy is to optimize the industrial structure. The government's implementation of industrial policy should focus on overcoming obstacles to the flow of resources among various industrial sectors. Therefore, the government must regulate it at the macro level and establish a social security system and support to solve structural unemployment. Reemployment system. If there are institutional reasons for inefficiency in an open economy, then it is necessary for the government to carry out institutional innovation. Institutional innovation policies are mainly reflected in the enterprise system, including the reform of the investment system when the enterprise is founded, the reform of the enterprise property rights system, and the reform of the enterprise management system that corresponds to it. The theoretical analysis of government macroeconomic regulation under an open economy currently focuses on the study of international macroeconomic policy coordination. Under the conditions of economic globalization, the economies of participating countries are deeply interdependent. Only one country's policy matching is not enough to achieve internal and external economic balance. All participating countries should conduct international coordination on economic policies. Especially under the floating exchange rate system, international policy coordination has received widespread attention. Any behavior that can restrict the domestic macroeconomic policies of various countries on an international scale to a certain extent can be regarded as international economic policy coordination. Scholars who study international economic policy coordination have designed many international policy coordination programs with specific rules, which have had a great impact. The most famous plans include: Tobin's tax plan for various countries to levy transaction taxes on foreign exchange transactions, the exchange rate target zone plan proposed by Williamson and others, and the plan to restore the fixed exchange rate system proposed by MacKinnon. The plans have attracted great attention from theoretical circles and governments, and have had a great impact on the coordination of various countries to achieve internal and external balance.

However, there are many obstacles to international policy coordination due to the sovereignty of each country, and participation in international policy coordination itself also has cost-benefit issues, which have affected the practice of international policy coordination.