"Hegemony without Motivation: Domestic Policy Priorities and the Management of Exchange Rate Stabilization"

This article will first develop the concept of financial motivations, presenting first the relevant variables and then the logic suggesting why they should be linked. Then it will look at monetary policy behaviour in four international monetary systems; the gold standard at the beginning of this century, the gold exchange standard of the incerwar period, the Bretton Woods system in the 1960s, and the European Exchange Rate Mechanism of the past decade. In each case, the behaviour of the core state in the monetary system will be examined, except in the interwar system, for which both British and American policy will be addressed, as both countries were crucial to the system. This set of cases represents the universe of major functioning market-driven exchange rate systems this century. The case studies will trace the relationship between financial motivation and monetary policy in these core countries. Finally, the conclusion will suggest some implications of these findings for the construction of new systems for exchange rate stabilization.