Introduction The interdependence of open national economies has made it more difficult for governments to achieve full employment and price stability The channels of interdependence depend on the monetary and exchange rate arrangements This chapter examines the evolution of the international monetary system and how it influenced macroeconomic policy Copyright C 2003 Pearson Education, Inc Slide 18-4Copyright © 2003 Pearson Education, Inc. Slide 18-4 Introduction ▪ The interdependence of open national economies has made it more difficult for governments to achieve full employment and price stability. • The channels of interdependence depend on the monetary and exchange rate arrangements. ▪ This chapter examines the evolution of the international monetary system and how it influenced macroeconomic policy