Skip to main content

Exchange Rate Target Zones, the Louvre Accord and Policy Coordination

  • Chapter
  • 30 Accesses

Part of the Financial And Monetary Policy Studies book series (FMPS,volume 17)

Abstract

The collapse of the Louvre Accord in the wake of the October 1987 Stock Market crash was a setback for the cause of exchange rate target zones and international policy coordination. Advocates of these causes need to be able to argue that the failure of the Louvre design can be remedied in a future renewal and that the collapse itself has not irrevocably compromised the prospects for a successful renewed initiative.

Keywords

  • Exchange Rate
  • Monetary Policy
  • Fiscal Policy
  • Real Exchange Rate
  • Policy Coordination

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-94-009-0871-0_13
  • Chapter length: 14 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   59.99
Price excludes VAT (USA)
  • ISBN: 978-94-009-0871-0
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   79.99
Price excludes VAT (USA)

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Artis, M. J. (1988) “How Accurate is the World Economic Outlook? A post-mortem of short term forecasting at the International Monetary Fund”, Staff Studies for the World Economic Outlook, August.

    Google Scholar 

  • Artis, M. J. and S. Ostry (1986) International Economic Policy Coordination, Chatham House Papers 30, Routledge and Kegan Paul for the Royal Institute for International Affairs, London.

    Google Scholar 

  • Barro, R. and D. Gordon (1983) “Rules, Discretion and Reputation in a Model of Monetary Policy”, Journal of Monetary Economics, 12, pp. 101–122.

    CrossRef  Google Scholar 

  • Blake, A. and M. Weale (1988)“Exchange Rate Targets and Wage Formation”, National Institute Economic Review, February, pp. 48–63.

    Google Scholar 

  • Bryant, R. and G. Holtham (1987) “The US External Deficit: Diagnosis, Prognosis and Cure”, Brookings Discussion Papers in International Economics, No. 55, March.

    Google Scholar 

  • Currie, D. A. and S. Wren-Lewis (1987) “Evaluating the extended target zone proposal for the G3”, mimeo, September.

    Google Scholar 

  • Cooper, R. N. (1984) “The Prospects for International Economic Policy Coordination”, in (eds.) Buiter, W. H. and Marston, R. C.: International Economic Policy Coordination, Cambridge University Press.

    Google Scholar 

  • Crockett, A. D. and M. Goldstein (1987) “Strengthening the International Monetary System: Exchange Rates, Surveillance and Objective Indicators”, IMF Occasional Papers, No. 50.

    Google Scholar 

  • Dornbusch, R. (1986) Dollars, Debts and Deficits, Cambridge, Mass. MIT Press.

    Google Scholar 

  • Frankel, J. and K. Rockett (1986) “International Macroeconomic Policy Coordination when Policy-Makers disagree on the Model”, NBER Working Paper, No. 2059.

    Google Scholar 

  • Giavazzi, F. and A. Giovannini (1987) “Interpreting the European Disinflation: The Role of the Exchange-Rate Regime”, Conference on the EMS, Perugia, October.

    Google Scholar 

  • Kenen, P. B. (1987) “Exchange Rates and Policy Coordination”, Brookings Discussion Papers in International Economics, No. 61, October.

    Google Scholar 

  • Kydland, F. and E. Prescott (1977) “Rules rather than Discretion: The Inconsistency of Optimal Plans”, Journal of Political Economy, 85, pp. 473–491.

    CrossRef  Google Scholar 

  • Laskar, D. (1986) “International Cooperation and Exchange Rate Stabilization”, Journal of International Economics, 21, pp. 151–164.

    CrossRef  Google Scholar 

  • Masson, P. R. and A. R. Ghosh (1987) “International Policy Coordination in a World with Model Uncertainty”, IMF WP/87/81, December.

    Google Scholar 

  • McKinnon, R. I. (1982) “The Exchange Rate and Macroeconomic Policy: Changing Postwar Perceptions”, Journal of Economic Literature, June, pp. 531–557.

    Google Scholar 

  • McKinnon, R. I. (1984) “An International Standard for Monetary Stabilization”, Institute for International Economics, Policy Analyses in International Economics, No. 8.

    Google Scholar 

  • McKinnon, R. I. (1986) “Monetary and Exchange Rate Policies for International Financial Stability: A Proposal”, Journal of Economic Perspectives.

    Google Scholar 

  • Meade, J. (1984) “A New Keynesian Bretton Woods”, Three Banks Review, June.

    Google Scholar 

  • Meade, J. (1987) “Monetary Policy and Fiscal Policy: The Assignment of Weapons to Targets”, mimeo.

    Google Scholar 

  • Miller, M. H. and J. Williamson (1987a) “Targets and Indicators: A Blueprint for International Coordination of Economic Policy”, Institute for International Economics, Policy Analyses in International Economics, No. 22, September.

    Google Scholar 

  • Miller, M. H. and J. Williamson (1987b) “The International Monetary System: An Analysis of Alternative Regimes”, mimeo.

    Google Scholar 

  • Rogoff, K. (1985) “Can International Monetary Policy Coordination be Counter-productive?”, Journal of International Economics, 18, pp. 199–217.

    CrossRef  Google Scholar 

  • Tabellini, G. (1988) “Domestic Policies and the International Coordination of Fiscal Policies”, CEPR Discussion Papers, No. 226.

    Google Scholar 

  • Williamson, J. (1985) “The Exchange Rate System” (rev. ed.), Institute for International Economics, Policy Analyses in International Economics, No. 5.

    Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and Permissions

Copyright information

© 1989 Kluwer Academic Publishers

About this chapter

Cite this chapter

Artis, M.J. (1989). Exchange Rate Target Zones, the Louvre Accord and Policy Coordination. In: Fair, D.E., de Boissieu, C. (eds) The International Adjustment Process. Financial And Monetary Policy Studies, vol 17. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-0871-0_13

Download citation

  • DOI: https://doi.org/10.1007/978-94-009-0871-0_13

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-6879-6

  • Online ISBN: 978-94-009-0871-0

  • eBook Packages: Springer Book Archive