Monetary Interdependence and Coordination.

This paper examines the interdependence and coordination of monetary and exchange rate policies among the G-3 countries over the period 1977 through 1993. The results in the paper suggest that the international monetary transmission mechanism is important, and that, among the G-3, US policies are the most influential. Further, it suggests that the G-3 generally honor international monetary policy commitments, although in the case of Germany the commitments seem to have coincided with domestic policy objectives.