A Structural Case for International Cooperation

Correa, Amelia; Correa, Romar

doi:2003.18.2.406

The Journal of Economic Integration 2003 June;18(2) :406-419.
DOI: https://doi.org/10.11130/jei.2003.18.2.406

A Structural Case for International Cooperation

Amelia Correa, Romar Correa,

University of Mumbai

ABSTRACT

We recommend a Bretton Woods system along structural lines. A key component of the case is the substitution of the money transmission mechanism by the credit transmission mechanism. We suggest that the real exchange rate be the variable of cooperation between countries that are free to set interest rates to pursue domestic policy objectives. JEL Classifications: E12, F41, F42

Keywords: B