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International Constraints and Domestic Choices

Economic Convergence and Exchange Rate Policy in France and Italy

Bibliographic Data

ID6345877
AuthorsJames I Walsh (0000-0002-5833-1705, The American University, Washington D.C., corresponding author)
Year1994
Volume42
Issue2
Pages243-258
Publication date1994-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenuePolitical Studies (JOURNAL)
Journal identifiersISSN: 0032-3217 • E-ISSN: 1467-9248
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1111/j.1467-9248.1994.tb01910.x
OpenAlexW2008809703
LanguageEN
Citations received17

As tensions in the European Monetary System demonstrate, international capital flows can have a decisive influence on countries' economic policies. The external constraint of high international capital mobility led the countries of Western Europe in the 1980s to attempt to stabilize their exchange rates and converge toward low levels of inflation. Yet this process was not uniform: French governments pursued a rigorous anti-inflationary policy of high interest rates and a strengthening currency, while Italian governments had difficulty controlling inflation and maintaining the lira in the European Monetary System. This difference is best explained by comparing political institutions and policymaking processes in the two countries. Particular attention is given to political leaders' access to economic policy tools and their capacity to design and implement long-term goals

Capital (architecture · Common currency · Constraint (computer-aided design · Convergence (economics · Currency · Economics · European Monetary System · Exchange rate · Inflation (cosmology · International economics · Lira · Macroeconomics · Monetary economics · Monetary policy · Political science · Politics · Economic Theory and Policy · Global Financial Crisis and Policies

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Unique citing works17
Citations per year0,53
Citation span1994 - 2025 (32)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 17
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