This volume contains the proceedings of a conference on "Macroeconomic Policy and the External Constraint" held by the Centre for Economic Policy Research and the Bank of Greece in Athens in May 1990. The papers consider the implications of the external constraint for the design of stabilization policies in the European economies under the fixed exchange-rate regime of the EMS and in the aftermath of the abolition of intra-EC capital flows. The volume includes cross-country studies of savings and investment, fiscal policy, unemployment, incomes policies, and business cycle fluctuations, and...