From convoy to parting ways? Post-crisis divergence between European and US macroeconomic Policies
The response in 2008-09 to the global financial crisis was in many ways a high water mark for transatlantic policy coordination. The major economies of the EU and the US rapidly agreed on a series of measures to limit the crisis. However, the common approach has since unraveled. This paper explores why the London consensus has not survived for much more than a year.In response to this situation this working paper suggests a critical quantum of coordination. Key measures include a commitment to avoiding deliberate currency depreciation and unilateral intervention; agreement to give the IMF an enhanced monitoring role; the adoption by parliaments of medium-term fiscal plans ; and cooperation on the issue of Chinese undervaluation.
|Date of creation:||Feb 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Rue de la Charité, B-1210 Brussels|
Phone: +32 2 227 4210
Web page: http://www.bruegel.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joseph E. Gagnon & Matthew Raskin & Julie Remache & Brian P. Sack, 2010.
"Large-scale asset purchases by the Federal Reserve: did they work?,"
441, Federal Reserve Bank of New York.
- Joseph E. Gagnon & Matthew Raskin & Julie Remache & Brian P. Sack, 2011. "Large-scale asset purchases by the Federal Reserve: did they work?," Economic Policy Review, Federal Reserve Bank of New York, issue May, pages 41-59.
- Ansgar Belke & Thorsten Polleit, 2006.
"How the ECB and the US Fed Set Interest Rates,"
Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim
269/2006, Department of Economics, University of Hohenheim, Germany.
- Henning Bohn, 1998. "The Behavior of U. S. Public Debt and Deficits," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 949-963.
- Daniel J. Wilson, 2010. "Is the recent productivity boom over?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue sep20.
- Michael Woodford, 2001.
"Fiscal Requirements for Price Stability,"
NBER Working Papers
8072, National Bureau of Economic Research, Inc.
- Benassy-Quere, Agnes & Coeure, Benoit & Jacquet, Pierre & Pisani-Ferry, Jean, 2010.
"Economic Policy: Theory and Practice,"
Oxford University Press, number 9780195322736, December.
- Agnès Bénassy-Quéré & Benoît Coeuré & Pierre Jacquet & Jean Pisani-Ferry, 2010. "Economic Policy: Theory and Practice," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00684190, HAL.
- Jakob von Weizsäcker, 2009. "Estimating the size of the European stimulus packages," Policy Contributions 266, Bruegel.
- repec:fip:fedgsq:y:2010:x:47 is not listed on IDEAS
- Jean Pisani-Ferry & Adam Posen, . "The euro at ten: the next global currency?," Books, Bruegel, number 303.
- Valerie Cerra & Sweta Chaman Saxena, 2008.
"Growth Dynamics: The Myth of Economic Recovery,"
American Economic Review,
American Economic Association, vol. 98(1), pages 439-57, March.
- Valerie Cerra & Sweta Chaman Saxena, 2007. "Growth dynamics: the myth of economic recovery," BIS Working Papers 226, Bank for International Settlements.
- Valerie Cerra & Sweta C. Saxena, 2005. "Growth Dynamics: The Myth of Economic Recovery," Macroeconomics 0508008, EconWPA.
- Sweta Chaman Saxena & Valerie Cerra, 2005. "Growth Dynamics; The Myth of Economic Recovery," IMF Working Papers 05/147, International Monetary Fund.
- Olivier J. Blanchard, 1984.
"Current and Anticipated Deficits, Interest Rates and Economic Activity,"
NBER Working Papers
1265, National Bureau of Economic Research, Inc.
- Blanchard, Olivier J., 1984. "Current and anticipated deficits, interest rates and economic activity," European Economic Review, Elsevier, vol. 25(1), pages 7-27, June.
- Olivier J. Blanchard, 1991. "Current and Anticipated Deficits, Interest Rates and Economic Activity," NBER Chapters, in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 361-390 National Bureau of Economic Research, Inc.
- Olivier Jean Blanchard, 1990. "Suggestions for a New Set of Fiscal Indicators," OECD Economics Department Working Papers 79, OECD Publishing.
- repec:hal:journl:hal-00684190 is not listed on IDEAS
- Adam S. Posen & Jean-Pisani Ferry (ed.), 2009. "Euro at Ten: The Next Global Currency?, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4303, January.
- Ben S. Bernanke, 2010. "Monetary policy objectives and tools in a low-inflation environment: a speech at the Revisiting Monetary Policy in a Low-Inflation Environment Conference, Federal Reserve Bank of Boston, Boston, Massa," Speech 546, Board of Governors of the Federal Reserve System (U.S.).
When requesting a correction, please mention this item's handle: RePEc:bre:wpaper:498. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruegel)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.