This text presents a study of counterproductive co-operation. It takes to task the critical importance of conducting systematic theory-guided empirical research to examine the validity of arguments that international monetary co-operation could be highly counterproductive. It combines various methods, formal, quantitative, and qualitative, to study the theories of counterproductive monetary co-operation by focusing on the co-operative episodes among the major industrial countries - the United States, Japan, and Germany. The book presents all theories of counterproductive co-operation in one place, subjects them to systematic, empirical scrutiny in the light of the experience of G-3 (U.S., Germany, and Japanese) co-operation since the 1970s, and suggests policy recommendations in the light of the findings.