The transatlantic economy is breaking into two different blocs: on the European side, there is the common market and a treaty calling for a common currency; on the United States side, we have NAFTA and calls for its extension to countries in Latin America. To date, there has been surprisingly little economic analysis of the causes or effects of this development, which is of major historical significance. This volume brings together specialists in trade theory, international finance, and political economy in an attempt to do just that.
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.