TRADE REGIONALIZATION, EXCHANGE RATE POLICIES AND THE EU-US ECONOMIC COOPERATION
TRADE REGIONALIZATION, EXCHANGE RATE POLICIES AND THE EU-US ECONOMIC COOPERATION

Summary/Abstract: This paper demonstrates that trade regionalization has important monetary and exchange rate implications. It goes on and argues that since EU increased importance in the monetary field following the euro’s introduction and the anticipated development of its international role, an action that it may contain the hazard of confrontation between the major blocks and therefore lead to a system less stable than a unpopular one. Appropriate arrangements for cooperation between the other poles of the world economy, indeed US dollar and Japanese yen, will be crucial for the stability of the world monetary system.

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