French Exchange Rate Management in the Oil Crisis

by Bob Burkhardt
October, 1978

Converted to HTML July 27, 1998.

This is a paper I did as a graduate student in economics at M.I.T. The paper was originally a term paper for International Monetary Relations at the Massachusetts Institute of Technology in Spring, 1976. I had to write a paper for the course and was rather clueless as to a topic. One of the professors of the course, Rudiger Dornbusch, suggested I do something on "the snake". All I could think of was the Snake River in Idaho whose relationship to international monetary relations seemed rather obscure to me, but Professor Dornbusch patiently clued me in.

The analysis and style of this paper have benefited from comments by Charles P. Kindleberger, the other instructor for the course, who graded it when it was originally submitted as a term paper. His handwriting was pretty awful, and he was kind enough to explain all his comments when I went in to see what it all meant.

A version in PDF format is available.

Contents

Chapter 1: Introduction

Chapter 2: Pressures on French-German Exchange Parity

Chapter 3: French Policy Options

Chapter 4: France's Reaction

References

Tables

Table 2.1: Consumer Price Levels in France and West Germany

Table 2.2: Trade of France and West Germany with the Oil Countries

Table 2.3: Domestic Oil Consumption in Germany and France

Table 2.4: Exports from Oil Countries to Selected Areas in 1974

Table 2.5: External Surplus and Investment of Oil-Exporting Countries

Economics Paper Index

Chapter 1:	Introduction
Chapter 2:	Pressures on French-German Exchange Parity
Chapter 3:	French Policy Options
Chapter 4:	France's Reaction
References


Table 2.1:	Consumer Price Levels in France and West Germany
Table 2.2:	Trade of France and West Germany with the Oil Countries
Table 2.3:	Domestic Oil Consumption in Germany and France
Table 2.4:	Exports from Oil Countries to Selected Areas in 1974
Table 2.5:	External Surplus and Investment of Oil-Exporting Countries