Learning to manage external constraints : Belgian monetary policy during the Bretton Woods era (1944-1971)
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.
|Date of creation:||01 Sep 2006|
|Contact details of provider:|| Postal: Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium)|
Fax: +32 10473945
Web page: http://www.uclouvain.be/econ
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.:
- Alessandra Casella & Barry Eichengreen, 1991.
"Halting Inflation in Italy and France After World War II,"
NBER Working Papers
3852, National Bureau of Economic Research, Inc.
- Casella, Alessandra & Eichengreen, Barry, 1991. "Halting Inflation in Italy and France After World War II," CEPR Discussion Papers 594, C.E.P.R. Discussion Papers.
- Britton,Andrew, 2001. "Monetary Regimes of the Twentieth Century," Cambridge Books, Cambridge University Press, number 9780521801690, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ctl:louvec:2006032. 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: (Anne DAVISTER-LOGIST)
If references are entirely missing, you can add them using this form.