DP342 Macroeconomic Policy Coordination and the European Monetary System
| Author(s): | Richard Portes |
| Publication Date: | September 1989 |
| Keyword(s): | EC, Exchange Rates, Fiscal Policy, Policy Coordination |
| JEL(s): | 431, 432 |
| Programme Areas: | International Macroeconomics |
| Link to this Page: | cepr.org/active/publications/discussion_papers/dp.php?dpno=342 |
This paper discusses the EMS and proposals to move towards EMU in the context of recent theoretical and empirical work on international policy coordination. It treats two particular themes: asymmetry among EMS countries and its implications for policy coordination; and the coordination required to reach agreed European Community macroeconomic policies. Section 1 examines policy coordination in a fixed exchange rate system. Section 2 discusses policy coordination in the Delors Committee Report, with its emphasis on fiscal policies. Section 3 deals with asymmetry and hegemony, and Section 4 suggests reasons to strengthen "absolute" policy coordination in the EC.