Date of Original Version



Conference Proceeding

Abstract or Description

The organizers have asked an important question, in my view, one of the most important questions - or more accurately set of questions - that can be asked of economists. How do we achieve greater stability? How big are the instabilities now, and how many of them are caused, or magnified, by current policy arrangements? Do fluctuating exchange rates augment or buffer shocks arising elsewhere, or are fluctuating exchange rates an independent source of disturbance? Can monetary reforms, domestic or international, increase stability without fiscal reforms, greater stability of trade policy and perhaps, either changes in political systems or fewer opportunities for politicians to influence economic events.


Prepared for The Third International Conference of the Institute of Monetary and Economic Studies Bank of Japan



Published In

Toward a World of Economic Stability, Y. Suzuki and M. Okabe, University of Tokyo Press.