"International constraints and domestic choices: economic convergence and exchange rate policy in France and Italy"

Walsh, James I. (1993) "International constraints and domestic choices: economic convergence and exchange rate policy in France and Italy". In: UNSPECIFIED, Washington, DC. (Unpublished)

Preview

PDF Download (2089Kb) | Preview

Abstract

This paper examines the French and Italian experiences with exchange rate stability and macroeconomic convergence within the European Monetary System since 1979. While France and Italy present roughly similar economic profiles and have been exposed to the same international economic developments, they have experienced differing levels of exchange rate stability and macroeconomic convergence. I consider three theoretical explanations for this difference. The first looks to changes in the international economy to explain differing policy patterns. The second explanation focuses on the dynamics of domestic politics and interests. I conclude that neither of these approaches adequately explains different patterns of French and Italian economic policy within the EC. Instead, I argue that the third approach, which focuses on the nature of policymaking institutions and the instruments accessable to policymakers, best explains the countries' different outcomes.

Actions (login required)