The growth of exchange rate cooperation decreases since it is affected negatively by poor policies made by political powers insulating the growth of exchange rate. Therefore, for the growth exchange rate, cooperation political interference withdraws to allow trade and capital flow to grow. This has a positive impact to exchange rate cooperation since poor political policies are not developed. On the other hand, Beth A. Simmons, in the book, who argues that deductive models theories based on sophisticated economic models and abstraction explains the dynamics of exchange rate cooperation, especially in the world wars. Moreover, monetary instability, economic nationalism, and commercial collapse are the main effects to the lack of exchange rate cooperation across the globe (Beth 3). Martin Feldstein, the former chairperson of the council of economic advisers (CEA), support Beth’s arguments based on the observations of G7 on international monetary cooperation. He published a series of articles and made speeches on the practice of international monetary coordination criticizing exchange rate cooperation for the following reasons. Politics of Monetary Cooperation.
Beth A. Simmons: Who Adjusts? Domestic Sources of Foreign Economic Policy During the Interwar Years: illustrated, reprint; Princeton University Press, 1997,110 pages
Kathleen R. McNamara: The Currency of Ideas: Monetary Politics in the European Union: illustrated, revised, Cornell University Press, 1998, 185pages
Please type your essay title, choose your document type, enter your email and we send you essay samples