Exchange Rates and Cohesion: Historical Perspectives and Political‐Economy Considerations

Barry Eichengreen and David Leblang

Journal of Common Market Studies, 2003, vol. 41, issue 5, 797-822

Abstract: We consider the political economy of exchange rate choice and its implications for economic growth from an historical perspective. Previous studies have tended to find only a weak association between the choice of exchange rate regime on the one hand and growth and cohesion on the other. Our findings confirm this negative result, but then go on to explain it by showing that the implications of the exchange rate regime for growth and cohesion are context‐specific. They show that the choice of entry rate is important and that when the global monetary regime operates as an engine of deflation it is inadvisable for countries to link up to it. We draw out the implications of these findings for the debate over Britain and the euro.

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (55)

Downloads: (external link)
https://doi.org/10.1111/j.1468-5965.2003.00464.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jcmkts:v:41:y:2003:i:5:p:797-822

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0021-9886

Access Statistics for this article

Journal of Common Market Studies is currently edited by Jim Rollo and Daniel Wincott

More articles in Journal of Common Market Studies from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().