GENEVA — Former Federal Reserve Board Chairman Paul A. Volcker said Monday that the recent dramatic drops in stock markets worldwide showed the need for major countries to better coordinate their economic policies.
He also urged that economic policy-makers pay more attention to currency exchange rate stability, adding that free-floating exchange rate arrangements could not solve all problems.
Volcker was speaking to 500 delegates attending the 40th anniversary celebration of the General Agreement on Tariffs and Trade, the 95-nation body dominating world commerce.
"Now I am happily free of all official responsibility," he noted, and described himself as a "monetary has-been".
Volcker made his comments on exchange rates at a time when the dollar was under renewed pressure on world markets, trading at new postwar lows against the West German mark and Japanese yen, at around 1.6350 marks and 132.20 yen.