Economic Interactions and Economic Integration
The 1980s and early 1990s saw a continuation of the trend toward growing international economic interdependence that has been evident since the end of World War II. One manifestation of this trend is the increase in world trade relative to world output. Even more striking was the augmentation of financial interdependence — a more recent phenomenon than the growth of trade. In the 1970s and especially in the 1980s flows of funds across national borders increased by remarkably large amounts, as is illustrated later in this chapter.
KeywordsExchange Rate Interest Rate Monetary Policy Central Bank Fiscal Policy
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