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Multilateralizing Trade and Payments in Postwar Europe

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Author Info
Thomas H. Oatley
Abstract

Europe's postwar shift to multilateral trade and payments arrangements was complicated by three factors. Distributional problems and uncertainty about the state of the world made European governments reluctant to adopt multilateral arrangements without financial support from the United States. An enforcement problem made U.S. policymakers reluctant to finance a European multilateral trading system. The severity of these problems was reduced by institutional designs that combined flexibility, centralization, and particular decision rules. Centralization and flexibility reduced uncertainty and softened distributive conflict. Centralization and particular decision rules solved the enforcement problem that U.S. policymakers faced. © 2001 The IO Foundation and the Massachusetts Institute of Technology

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Article provided by MIT Press in its journal International Organization.

Volume (Year): 55 (2001)
Issue (Month): 4 (October)
Pages: 949-969
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Handle: RePEc:tpr:intorg:v:55:y:2001:i:4:p:949-969

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This page was last updated on 2009-12-2.

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