U.S. Waits in Bullpen during Economic Policy Game

By Tanzy, Kathleen | Futures (Cedar Falls, IA), November 1992 | Go to article overview
Save to active project

U.S. Waits in Bullpen during Economic Policy Game


Tanzy, Kathleen, Futures (Cedar Falls, IA)


Election or no election, Uncle Sam is a bench sitter in the current game of international economic policy coordination.

Quite a departure from the self-proclaimed leadership position of the last few years. Only months ago the United States finally won kudos for pitching a world policy approach aimed at stimulating growth vs. fighting inflation.

Sharing the dugout bench are Canada and Japan. Both already have done their part to reduce inflation and at the same time revive their economies. This time the European nations are on the field.

September's currency crisis in Europe made it clear future economic policy coordination by the Group of Seven (G-7) industrial nations would be led by the Continent and not the United States. The U.S.-hosted G-7 meeting of finance ministers and central bank governors on Sept. 19 produced one of the shortest joint communiques in the confab's history -- three paragraphs. And one of them dealt with Russian assistance.

All the group could agree on was concern about the volatility in world financial markets and the need for restoring "stable and long-lasting exchange rate relationships." There was no evidence the officials would agree to any detailed concerted currency intervention or other actions, which only fuels the notion that the G-7 is increasingly dysfunctional.

President Bush's attempt to lead top economies toward policy convergence following the market-disturbing Sept. 20 Maastricht Treaty vote by France was snubbed and laughed at by U.S. trading partners.

And, as history would suggest, a victory by Presidential hopeful Bill Clinton would put the United States on no better than observation status at future global policy coordination meetings. The reason: It would bring a new cast of characters to the G-7 finance meetings and economic summits -- personalities most likely inexperienced in the ways of cooperation among the industrial nation elite.

Wagging fingers have pointed blame for the European currency crisis in several directions:

* at Germany, for maintaining high interest rates when neighboring nations hoped to cut rates;

* at Germany and the United States for maintaining wide interest rate differentials and divergent monetary policy paths;

* at currency speculators for hyping doubts about the viability of monetary union in Europe and triggering a bout of foreign exchange market volatility that toppled the British pound and the Italian lira.

As a result, both Great Britain and Italy were pressed to leave the European Community's exchange rate mechanism (ERM). The French franc narrowly escaped ERM exile by stealing home plate -- the security of its floor in the currency regime -- with the help of Bundesbank intervention to sell the D-mark in support of the franc.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

U.S. Waits in Bullpen during Economic Policy Game
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.