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From Franc fort to Franc faible twelve years of French economic policy

Author: Cadot, Olivier ; Fatás, AntonioINSEAD Area: Economics and Political SciencePublisher: Fontainebleau : INSEAD, 1996.Language: EnglishDescription: 15p.Type of document: INSEAD CaseAbstract: This case focuses on macroeconomic policy in France during the period 1981-93. The early socialist attempt at reflating the economy during 1981-82 is critically reviewed, suggesting lessons that go beyond the case of France. The case then reviews the franc's stabilisation and the concomitant rise in unemployment over 1983-93Pedagogical Objectives: The case is designed to illustrate the key trade-offs in macroeconomic policy, the logic of government choices and their impact on business. The case also serves as a useful introduction to a discussion of economic and monetary union (EMU) issues including the single currency and the Maastricht convergence criteria.
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The case is designed to illustrate the key trade-offs in macroeconomic policy, the logic of government choices and their impact on business. The case also serves as a useful introduction to a discussion of economic and monetary union (EMU) issues including the single currency and the Maastricht convergence criteria.

This case focuses on macroeconomic policy in France during the period 1981-93. The early socialist attempt at reflating the economy during 1981-82 is critically reviewed, suggesting lessons that go beyond the case of France. The case then reviews the franc's stabilisation and the concomitant rise in unemployment over 1983-93

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