The New Transatlantic Economy

Transatlantic economic relations are dominated by three factors which are of major historical significance. The first and most important is the multilateral process for trade liberalisation, deregulation of financial markets, and macroeconomic policy co-ordination. The second factor is a transatlantic environment of national and regional idiosyncrasies exemplified by protectionist initiatives, a significant weakening of the EMS, and changes in central bank statutes. The second factor is in part a political backlash against the first. The third factor affecting transatlantic economic relations is of course the emergence of regional economic relationships within the transatlantic economy, and a treaty calling for a common currency in Europe. In this 1996 volume, specialists in international trade, international finance, and political economy analyse the causes of these three factors, and their implications.

List of figures; List of tables; Preface; List of conference participants; 1. Introduction Matthew B. Canzoneri, Wilfred J. Ethier, and Vittorio Grilli; 2. Transatlantic policy coordination with sticky labour markets: the reality of the real side Andrew Hughes Hallett and Yue Ma; Discussion Nouriel Roubini; 3. Foreign exchange intervention and international policy coordination: comparing the G3 and EMS experience Axel A. Weber; Discussion Joseph Gagnon; 4. Trading blocs and the sustainability of interregional cooperation Eric Bond and Constantinos Syropoulos; Discussion Konstantine Gatsios; 5. The effects of trade liberalization on the members of a trading bloc: a lumpy country analysis Alan V. Deardorff; Discussion L. Alan Winters; 6. The increased importance of direct investment in North Atlantic economic relationships: a convergence hypothesis James R. Markusen and Anthony J. Venables; Discussion Alasdair Smith; 7. Speculative attacks on pegged exchange rates: an empirical exploration with special reference to the European Monetary System Barry Eichengreen, Andrew K. Rose, and Charles Wyplosz; Discussion Robert E. Cumby, Robert P. Flood; 8. Central banks and reputation: some transatlantic contrasts Ben Lockwood, Marcus Miller, and Lei Zhang; Discussion Stanley W. Black; 9. Trade liberalization and trade adjustment assistance K. C. Fung and Robert W. Staiger; Discussion Constantinos Syropoulos; 10. Trade liberalization as politically optimal exchange of market access Arye L. Hillman and Peter Moser; Discussion Martin Richardson; Index.