The United States acted unilaterally to terminate the Bretton Woods monetary system in August 1971, and international exchange rate management went from a regime of fixed to floating parities, much to the displeasure of the membership of the European Community. The Nixon, Ford, and Carter administrations adopted policies that heavily benefited U.S. reform objectives and domestic economic goals, which frequently clashed with allied concerns, and damaged American monetary relations with France and West Germany. Yet, the inability of France and the Federal Republic of Germany to form cohesive economic and monetary policies throughout international negotiations or within the European Community (EC), allowed American desires to dictate the path and pace of European integration. France and Germany attempted, with limited success, to influence U.S. monetary policy through bilateral diplomacy during years of exchange rate fluctuations, dollar devaluations, oil shocks, and payments deficits. Finally, President Valery Giscard d'Estaing and Chancellor Helmut Schmidt created the European Monetary System (EMS) in 1979, reversing the trend of half-hearted attempts at European integration so relevant the decade before. The EMS detached the EC's currencies from the dollar's control, was compatible with the reformed international monetary system, advanced a more independent European monetary identity, and formed the base for future monetary integration. As a result, the EMS, as the birthplace of the Euro, the single European currency launched in 2002, may soon rival the dollar's position as the primary reserve currency. American monetary policies designed to improve the health of the dollar during the 1970s were a catalyst for European integration. However, as the European Union deepens its economic integration and the Euro grows in strength, it seems that U.S. policies created a regime and a currency that will challenge its dominant position in international monetary affairs.

The CFA consists several African economies adhering to one of two common currencies, and one of two central banks. The rules of the monetary union provide for the pooling of foreign assets, and the regulation of monetary expansion in each country. The French treasury guarantees the convertibility of CFA Francs into French Francs at a fixed rate. The thesis examines the impact of CFA membership on the macroeconomic performance of member states, assessing the claim that CFA institutions have influenced capital and labour markets, and have modified short run adjustment to external shocks. There are a number of reasons why CFA membership could facilitate higher investment, (i) The rules governing money creation may lead to greater monetary prudence, and so lower inflation and price variability, and less uncertainty for investors, (ii) Guaranteed convertibility means that firms will never be prevented from importing capital goods by a lack of foreign exchange, (iii) Convertibility may encourage a greater degree of integration between French and CFA capital markets, so that domestic investment is not entirely dependant on domestic saving. A model of investment is constructed to incorporate these effects, and tested using time series and cross-sectional data. Support is found for (i) and (ii), but not for (iii). If African labour markets are characterised by nominal wage inertia, the enforced low inflation may lead to excessive real wages, and CFA membership may impair efficient allocation of labour. However, evidence suggests this characterisation is usually inappropriate. The pegged exchange rate may lead to persistent external imbalances: devaluation is not an option in response to a negative trade shock. This will not be a problem as long as an effective substitute for devaluation is found. A CGE model is constructed to examine the viability of various devaluation substitutes, none of which are found to be adequate.

Thesis (Ph.D.)--York University, 2006. Graduate Programme in Political Science. / Typescript. Includes bibliographical references (leaves 299-323). Also available on the Internet. MODE OF ACCESS via web browser by entering the following URL: http://gateway.proquest.com/openurl?url_ver=Z39.88-2004&res_dat=xri:pqdiss&rft_val_fmt=info:ofi/fmt:kev:mtx:dissertation&rft_dat=xri:pqdiss:NR19782

Thesis (Ph. D.)--University of Chicago, Dept. of Economics, June 2002. / Includes bibliographical references. Also available on the Internet.

Thesis (Ph. D.)--University of California, San Diego, 2000. / Vita. Includes bibliographical references.

Thesis (Ph. D.)--University of Manitoba, 2004. / Includes bibliographical references.

Thesis (Ph. D.)--New York University, 1991. / Includes bibliographical references (leaves 237-245).

Thesis (Ph. D.)--University of Colorado, 1990. / Includes bibliographical references (leaves [262]-264).

Thesis (Ph. D.)--University of California, Berkeley. / Some pages duplicated and some page numbering repeated. Includes bibliographical references.

Thesis (Ph. D.)--Oklahoma State University, 1993. / Vita. Includes bibliographical references (leaves 134-139).