The new transatlantic economy

by Matthew B. Canzoneri

Transatlantic economic relations are dominated by three factors which are of major historical significance. The first and most important is the multilateral process for trade liberalization, deregulation of financial markets, and macro-economic policy coordination. The second factor is a transatlantic environment of national and regional idiosyncracies exemplified by protectionist initiatives, a significant weakening of the EMS, and changes in central bank statutes. The second factor is in part a political backlash against the first. The third factor affecting transatlantic economic...