Transatlantic Economic Relations in the Post-Cold War Era

The book's American and European authors consider four aspects of the transatlantic economic relationship and its future. Specifically, will conflict or cooperation dominate in the coming years? Will the growing interdependence of the two continents' economies heighten policymakers' mutual interests and encourage them to collaborate in the pursuit of common goals, or will competition lead to conflict and recrimination? And how will the post-war tradition of economic policy collaboration adapt now that the glue of a common Cold War enemy has dissolved? The emerging picture is one of problems, not crises. An undercurrent of economic conflict and tension has rarely prompted U.S. and European policymakers to fundamentally reform their bilateral relationship. These essays thus point to incremental rather than revolutionary changes. However, if U.S. and European officials neglect the problem areas, the transatlantic economic relationship could deteriorate.

Barry Eichengreen is John L. Simpson Professor of Economics and Professor of Political Science at the University of California at Berkeley. His previous books include International Monetary Arrangements for the 21st Century (Brookings, 1994) and Labor and an Integrated Europe (Brookings, 1993).