The paper studies the monetary mechanism of a three-country world where two large countries are engaged in floating exchange rates with each other, and a small country is pegged to one of these large countries. Three countries possess an endogenous wage determination process, so that the choice...

Intro -- Contents -- List of Abbreviations -- Acknowledgments -- Foreword -- 1 Introduction -- Part I The Forces behind Monetary Cooperation and Integration -- 2 The Instability of the International Monetary System and the Regionalization of Money -- 3 The Asian Financial Crisis -- 4 The Rise of...