Learning to manage external constraints : Belgian monetary policy during the Bretton Woods era (1944-1971)

This file is part of IDEAS, which uses RePEc data

Learning to manage external constraints : Belgian monetary policy during the Bretton Woods era (1944-1971)

Author Info

Philippe, LEDENT (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)
Isabelle, CASSIERS

Abstract

This paper analyses the Belgian monetary and exchange rate policies at the time of Bretton Woods. It sheds light on the groping adjustment process by which internal economic policies are hit by or adapt to the external constraints. In 1944, an ambitious monetary reform laid down the economic policy objectives that remained in force for two decades, namely price stability and strong currency. However, we point out different incompatibilities between these objectives and the economic context of the 1950s and 1960s that could have negative consequences on Belgian economic growth?. More precisely, the long lasting European currencies inconvertibility (1944-1958) contradicted the orthodox approach of the monetary policy favoured by the Central Bank. When total convertability was finally achieved, the huge increase of capital movements led to a progressive loss of the monetary policy autonomy, despite the setting up of a two-tier exchange market, which can be viewed as an institutional innovation responding to new constraints.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

Publisher Info
Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2006032.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 27
Date of creation: 15 Sep 2006
Date of revision:
Handle: RePEc:ctl:louvec:2006032

Contact details of provider:
Postal: Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium)
Fax: +32 10473945
Email:
Web page: http://www.uclouvain.be/econ
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Anne DAVISTER).

Find related papers by JEL classification:
N14 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - Europe: 1913-
N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-
E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

This paper has been announced in the following NEP Reports:

NEP-ALL-2006-11-04 (All new papers)
NEP-HIS-2006-11-04 (Business, Economic & Financial History)
NEP-MAC-2006-11-04 (Macroeconomics)
NEP-MON-2006-11-04 (Monetary Economics)

Statistics

Access and download statistics

Did you know? There is a FAQ (frequently asked questions).

This page was last updated on 2009-12-1.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.