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
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.
- Olivier J. Blanchard, 1991.
"Current and Anticipated Deficits, Interest Rates and Economic Activity,"
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.
- 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, 1984. "Current and Anticipated Deficits, Interest Rates and Economic Activity," NBER Working Papers 1265, National Bureau of Economic Research, Inc.
- 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.
- Valerie Cerra & Sweta Chaman Saxena, 2007.
"Growth dynamics: the myth of economic recovery,"
BIS Working Papers
226, Bank for International Settlements.
- 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.).
- Woodford, Michael, 2001.
"Fiscal Requirements for Price Stability,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 33(3), pages 669-728, August.
- Jakob von Weizsäcker, 2009. "Estimating the size of the European stimulus packages," Policy Contributions 266, Bruegel.
- 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.
- Olivier Jean Blanchard, 1990. "Suggestions for a New Set of Fiscal Indicators," OECD Economics Department Working Papers 79, OECD Publishing.
- Benassy-Quere, Agnes & Coeure, Benoit & Jacquet, Pierre & Pisani-Ferry, Jean, 2010.
"Economic Policy: Theory and Practice,"
Oxford University Press, number 9780195322736.
- 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.
- 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.
- 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, November.
- Daniel J. Wilson, 2010. "Is the recent productivity boom over?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue sep20.
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 references are entirely missing, you can add them using this form.