This volume, first published in 1985 and based on a conference organised jointly by the Centre for Economic Policy Research and the National Bureau of Economic Research, examines developments in the study of international economic policy coordination. Eight papers were presented, and the meeting concluded with a panel discussion on the prospects for international policy coordination. In past years, there has been a revival of interest in the study of the international coordination of economic policy in the United States and Europe. This volume presents some of the best research on this important topic. The papers focus on several issues of importance in determining the desirability of international policy coordination: the nature of the transmission effects by which one country's policies affect another country; the trade-off between the current and future effects of policies, and the credibility of government policy when undertaken unilaterally or coordinated internationally.

This is an examination of the progress made in integrating the financial markets of the major industrial countries: Britain, France, Germany, Japan and the United States. It sets out to show that deregulation and liberalization have succeeded to such an extent that interest rates in any single currency are nearly the same, regardless of whether they are offered in national or Euro-currency markets. Professor Marston also demonstrates that currency denomination remains a barrier to full financial integration, in that both nominal and real returns on financial instruments vary widely by currency tied together in the European Monetary System. The analysis examines returns in the money and bond markets of these countries, investigating whether there are systematic variations in relative returns across markets.