Abstract
The 1980s and early 1990s saw a continuation of the trend toward growing international economic interdependence that has been evident since the end of the Second World War. 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 international capital flows among industrial countries increased by large amounts. In the 1990s, such flows went also to developing countries and countries in transition — emerging markets.
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Notes
This point is made in the Background Paper by R. Solomon in Partners in Prosperity, The Report of the Twentieth Century Fund Task Force on the International Coordination of National Economic Policies (New York: Priority Press, 1991) pp. 60–1.
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For this and a detailed inside story on exchange-rate negotiations see Y. Funabashi, Managing the Dollar: From the Plaza to the Louvre (Washington: Institute for International Economics, 1988).
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For a thorough treatment of these developments see H. Ungerer, A Concise History of European Monetary Integration (Westport, Conn.: Quorum Books, 1997).
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See, for example, P. B. Kenen, EMU After Maastricht (Washington: Group of Thirty, 1992);
C. R. Bean, ‘Economic and Monetary Union in Europe’, Centre for Economic Policy Research Discussion Paper Series, no. 722 (October 1992);
and W. H. Buiter, G. Corsetti, and N. Roubini, ‘“Excessive Deficits”: Sense and Nonsense in the Treaty of Maastricht’, Centre for Economic Policy Research Discussion Paper Series, no. 750 (December 1992).
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On these questions, see P. R. Masson, T. H. Krueger, and B. G. Turtelboom (eds), EMU and the International Monetary System (Washington: International Monetary Fund, 1997).
G. Hufbauer and J. J. Schott, NAFTA: An Assessment (Washington: Institute for International Economics, February 1993) p. 1.
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© 1999 Robert Solomon
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Solomon, R. (1999). Economic Interactions and Economic Integration. In: The Transformation of the World Economy. Palgrave Macmillan, London. https://doi.org/10.1057/9780333983492_6
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DOI: https://doi.org/10.1057/9780333983492_6
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