Suchergebnisse

There are differing views about the need for economic policy coordination in the EU and about the adequacy of the system that has evolved under EMU. This article examines the case for such policy coordination, then describes and assesses the current arrangements for both 'hard' coordination — epitomised by the much-maligned Stability and Growth Pact (SGP) — and the 'soft' forms of coordination that have evolved in the EU to complement formal rules. Although the system achieves more than is sometimes recognised, it is shown to have weaknesses. Options for reforming the SGP and other facets of the system are discussed.

SINCE 1985, INTERNATIONAL COOPERATION HAS INVOLVED MONETARY AUTHORITIES, PARTICULARLY CENTRAL BANKS, TO AN UNPRECEDENTED EXTENT IN COORDINATED ACTION IN THE FIELD OF MONETARY AND EXCHANGE RATE POLICIES. THIS FACT HAS INFLUENCED THE AUTHORS' APPROACH TO THE ISSUE OF ECONOMIC POLICY COORDINATION (EPC). THEY DO NOT OFFER A NEW MODEL OR PROVIDE A COMPREHENSIVE THEORETICAL EXPLANATION FOR THE EVENTS OF 1985-88. RATHER, THEY DESCRIBE THE PROBLEMS AND THE ACHIEVEMENTS OF EPC AS SEEN BY PRACTITIONERS OF EXCHANGE RATE AND MONETARY POLICY COORDINATION. THE FIRST SECTION OF THEIR PAPER BRIEFLY SURVEYS THE LITERATURE ON POLICY COORDINATION. THE SECOND SECTION DISCUSSES A NUMBER OF ISSUES THAT ARE CRUCIAL TO THE FEASIBILITY OF POLICY COORDINATION. THE THIRD ASSESSES THE OUTCOME OF THE EPC EXERCISE IN 1985-88, FOCUSING ON THE REACTIONS OF MONETARY AND FINANCIAL MARKETS TO THE IMPLEMENTATION OF THE COORDINATED STRATEGY, BOTH WITHIN THE G-7 AND THE EMS.