Working Paper: NBER ID: w8443
Authors: J. Bradford DeLong; Barry Eichengreen
Abstract: We review and analyze the monetary and financial policies of the Clinton administration with a focus on the strong dollar policy, the Mexican rescue, the response to the Asian crisis, and the debate over reform of the international financial architecture. While we consider the role of ideas, interests and institutions in the formulation of policy, our emphasis here is on institutions, and specifically on how personnel and administrative arrangements allowed the Treasury department to exercise an unusually important influence in the development of these policies. This allowed a set of ideas imported by Treasury from academia and the markets to strongly influence the formulation of the international monetary and financial policies during the Clinton years.
Keywords: No keywords provided
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Mexican peso crisis (F31) | Clinton administration's focus on international monetary issues (F33) |
| Asian financial crisis (F65) | Clinton administration's focus on international monetary issues (F33) |
| Mexican peso crisis (F31) | shift in Clinton administration's policy agenda (E65) |
| Asian financial crisis (F65) | shift in Clinton administration's policy agenda (E65) |
| Clinton administration's focus on international monetary issues (F33) | policies aimed at liberalizing capital flows (F32) |
| Clinton administration's focus on international monetary issues (F33) | policies supporting financial markets (G18) |
| belief that private investment is critical for U.S. economic growth (O39) | policies aimed at liberalizing capital flows (F32) |
| belief that private investment is critical for U.S. economic growth (O39) | policies supporting financial markets (G18) |
| Mexican peso crisis (F31) | policies aimed at liberalizing capital flows (F32) |
| Asian financial crisis (F65) | policies aimed at liberalizing capital flows (F32) |
| Mexican peso crisis (F31) | policies supporting financial markets (G18) |
| Asian financial crisis (F65) | policies supporting financial markets (G18) |