The contributors examine the conduct and consequences of national macroeconomic policy in a world of economically independent countries. The book's main themes include the effect of deregulation and financial innovation and of budget deficits on monetary policy, the role of exchange rates in the international transmission of disturbances of a monetary or fiscal origin, the effectiveness of price controls in moderating the economic cost of deflationary maroeconomic policies and the implications of cooperative versus non-cooperative approaches to policy under conditions of economic interdependence.

Notes on the Contributors - Introduction; D.R.Hodgman & G.E.Wood - PART 1 COUNTRY STUDIES - Recent Evolution of Financial Structures and Monetary Policy in France; D.Bruneel - Italian Monetary and Foreign Exchange Policy; D.R.Hodgman & R.W.Resek - Fiscal Deficits, Interest Rates and Monetary Policy in Germany; M.Willms - Prices and Price Controls: Are Price Controls a Policy Instrument?; F.Capie, M.Pradhan & G.E.Wood - PART 2 MACROECONOMIC POLICY INTERDEPENDENCE - US Fiscal Deficits and the Foreign Exchange Value of the US Dollar; R.Z.Aliber - Policy Interdependence: Does Strategic Behaviour Pay? An Empirical Investigation Using the Liverpool World Model; M.B.Canzoneri & P.Minford - The Role of Exchange Rate Movements in Transmitting International Disturbances; J.M.Boughton, R.D.Haas & P.R.Masson - PART 3 INTERNATIONAL - International Cooperation of Monetary Policies and Confrontation of Commercial and Financial Policies; G.Bsevi, P.Kind & G.Poli - Real Exchange Rates: Definition, Measurement and Trends in France, West Germany, Italy and the United Kingdom; D.V.Coes - The Effects of Economic Convergence and Competitiveness on Trade among the EMS Countries; L.Bini-Smaghi & S.Vona - Index