TY  - JOUR
AU  - Stockman,Alan C.
TI  - International Transmission Under Bretton Woods
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4127
PY  - 1992
Y2  - July 1992
UR  - http://www.nber.org/papers/w4127
L1  - http://www.nber.org/papers/w4127.pdf
N1  - Author contact info:
Alan C. Stockman
Department of Economics
University of Rochester
Rochester, NY  14627-0156
Tel: 585/275-7214
Fax: 585/256-2309
E-Mail: N/A user is deceased
M1  - published as Alan C. Stockman. "International Transmission under Bretton Woods," in Michael D. Bordo and Barry Eichengreen, editors, "A Retrospective on the Bretton Woods System: Lessons for International Monetary Reform" University of Chicago Press (1993)

AB  - This paper explores the main channels of international transmission of economic disturbances under the Bretton Woods System and presents evidence on the short-run international transmission of inflation under that system. There appears to have been little short-run international transmission of inflation. Countries with one-percent higher money-growth rates subsequently had one-fourth to one-half percent higher inflation and a (predictably) lower real interest rate. This probably reflects effects of money growth on inflation and interest rates rather than reverse causation: the natural interpretation of the evidence is that countries had some scope for monetary-policy independence under Bretton Woods, despite pegged exchange rates, and exercised that independence in ways that limited international transmission.
ER  -