International Economic Policy

This book studies the international coordination of monetary and fiscal policies in the world economy. It carefully discusses the process of policy competition and the structure of policy cooperation. As to policy competition, the focus is on monetary and fiscal competition between Europe and America. Similarly, as to policy cooperation, the focus is on monetary and fiscal cooperation between Europe and America. The spillover effects of monetary policy are negative while the spillover effects of fiscal policy are positive. The policy targets are price stability and full employment. The policy makers follow either cold-turkey or gradualist strategies. Policy expectations are adaptive or rational. The world economy consists of two, three or more regions. The present book is part of a larger research project on European Monetary Union, see the references at the back of the book. Some parts of this project were presented at the World Congress of the International Economic Association in Lisbon. Other parts were presented at the International Institute of Public Finance, at the Macro Study Group of the German Economic Association, at the Annual Meeting of the Austrian Economic Association, at the Gottingen Workshop on International Economics, at the Halle Workshop on Monetary Economics, at the Research Seminar on Macroeconomics in Freiburg, and at the Passau Workshop on International Economics.

The literature on international economics has become excessively specialized. In selecting distinguished readings for this source book--including contributions by Nobel laureates such as Lawrence R. Klein, Arthur Lewis, James Meade, and Theodore W. Schultz--Professor Letiche breaks the mold. The essays concentrate on interrelation between theory and actual policy design, and this collection of classic pieces and recent economic contributions are a valued resource in universities and government offices.

The world, characterized by a vast gap between technical ability and moral power, is in desperate need of a policy which will give it shape, and create a framework for the solution of its problems.

As the world economy is becoming increasingly global in nature, thefuture of Canada's welfare will directly depend on thecountry's response and reaction to a wide range of economic regimeswhich govern the international economy. This volume is an important andtimely analysis of past and current Canadian policies toward both theformal and less formal arrangements which regulate such areas asinternational trade and financial transactions, international serviceindustries, fisheries resources, and the environment. Often influencedby domestic political concerns and its relations with the UnitedStates, Canada has, as the authors point out, exhibited a high degreeof variation in its responses to these regimes. Canadian Foreign Policyand International Economic Regimes addresses a broad range of foreigneconomic policies not generally considered in the foreign policyliterature. Interdisciplinary in its approach, it will be of interestto those in political science and public policy, economics, and law, aswell as to those involved in international business.

This volume presents some of the best current research on international economic policy coordination.