Download or read book Exchange Rate Management in Interdependent Economies written by Silke Fabian and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the breakdown of the Bretton Woods System and the begin of floating between the major currencies, central banks have been formally freed from their obligations to defend the fixed parities of bilateral exchange rates. Nev ertheless, since then there have been countless occasions on which monetary authorities have officially intervened in the foreign exchange market. More over, numerous studies indicate that exchange rates have been much more variable than originally anticipated - in real and in nominal, as well as in short run and longer run measures (see for example Hesse and Braasch [1989] and Marston [1988]). Through the experience of high real sector costs, the topic of optimal exchange rate management soon reentered policy discussions. The term exchange rate management encompasses both the choice of ex change rate regime as well as active intervention policies within the given 1 system. Much of the recent policy discussion has focussed on the first issue, in particular proposals of how to reform the present international monetary order. And new systems such as the European Monetary System (EMS) have emerged for subgroups of countries. However, the question of finding the optimal system has not yet been resolved.
Download or read book Policy Decentralization and Exchange Rate Management in Interdependent Economies written by Willem H. Buiter and published by . This book was released on 1980 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Floating Exchange Rates in an Interdependent World written by United States. General Accounting Office and published by . This book was released on 1984 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Affairs written by U S Government Accountability Office (G and published by BiblioGov. This book was released on 2013-07 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: GAO sponsored a symposium of specialists on exchange rate behavior. The seminar participants addressed the yen-dollar exchange rates and analyzed the implications of floating exchange rates and economic interdependence on the conduct of national macroeconomic policy and the future of the international financial system. GAO found that it is questionable whether some policy to manage exchange rates can mitigate or reverse the adverse economic effects of exchange rate behavior. One analyst noted that there are alternative definitions of exchange rate overvaluation and several plausible sources of overvaluation. The limits to research in exchange rate behavior partially explain the disagreement over exchange rate management policy, and forecasting long-range exchange rates has not been successful. Although the symposium participants agreed that floating exchange rates cannot insulate an open economy from external economic disturbances or contain domestic disturbances within a single economy, they agreed that flexible exchange rates are superior to fixed rates. Panelists also agreed that policies aimed at countering misaligned exchange rates will have limited success if national macroeconomic policies differ markedly. Furthermore, a policy that addresses only the exchange rate, without addressing monetary and fiscal policies, can have only limited success.
Download or read book Exchange Rate Policies For Emerging Market Economies written by Richard J Sweeney and published by Routledge. This book was released on 2019-03-13 with total page 347 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the loss of Soviet control in Central and Eastern Europe, as well as the move toward economic liberalization in many developing countries, a huge increase in the number of convertible currencies in the world has occurred. A key aspect of the management of these currencies involves their relationships with the world economy, which is determined
Download or read book Floating Exchange Rates in an Interdependent World written by U S Government Accountability Office (G and published by BiblioGov. This book was released on 2013-07 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt: In response to a congressional request, GAO examined the role of government policy in determining exchange rates and the role of floating exchange rates in an interdependent world economy. The analysis was focused on: (1) the process of exchange rate determination, particularly the yen-dollar rate and the role of Japanese Government actions; (2) the constraints that international economic interdependence impose on economic policy; and (3) alternatives to the floating exchange rate system. According to some analysts, the floating exchange rate system is not an adequate method to facilitate the growth of world trade and investment. Some governments, especially Japan, are alleged to exert improper influence over exchange rates, while the United States does not exert enough influence. While appreciation of the dollar from 1980 to 1983 lowered the inflation rate, it also reduced the gross national product and caused the loss of over a million jobs. GAO found no support for charges that the Japanese Government pursued a policy to deliberately undervalue the yen relative to the dollar. Any intervention undertaken by that government was aimed at strengthening rather than weakening the yen. However, Japan could do more to facilitate greater international use of the yen. GAO found that exchange rates are affected by the international balance of trade, capital flows among nations, differences between countries' national economic policies and economic conditions, and perceived political risks and expectations. The complications of interdependence and the limits to current understanding of exchange rate behavior have prevented a consensus on the advisability of changing the current system. However, the interdependence of national economies constrain the range of domestic economic policies that the United States can adopt.
Download or read book Exchange Rate Management and Crisis Susceptibility written by Mr.Atish R. Ghosh and published by International Monetary Fund. This book was released on 2014-01-24 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper revisits the bipolar prescription for exchange rate regime choice and asks two questions: are the poles of hard pegs and pure floats still safer than the middle? And where to draw the line between safe floats and risky intermediate regimes? Our findings, based on a sample of 50 EMEs over 1980-2011, show that macroeconomic and financial vulnerabilities are significantly greater under less flexible intermediate regimes—including hard pegs—as compared to floats. While not especially susceptible to banking or currency crises, hard pegs are significantly more prone to growth collapses, suggesting that the security of the hard end of the prescription is largely illusory. Intermediate regimes as a class are the most susceptible to crises, but “managed floats”—a subclass within such regimes—behave much more like pure floats, with significantly lower risks and fewer crises. “Managed floating,” however, is a nebulous concept; a characterization of more crisis prone regimes suggests no simple dividing line between safe floats and risky intermediate regimes.
Download or read book International Policy Coordination and Exchange Rate Fluctuations written by William H. Branson and published by University of Chicago Press. This book was released on 2007-12-01 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the five largest industrial democracies concluded the Plaza Agreement in 1985, the theory and practice of international economic policy coordination has become the subject of spirited academic and public-policy debate. While some view policy coordination as crucial for the construction of an improved international monetary system, others fear that it risks delaying or weakening the implementation of macroeconomic and structural policies. In these papers and comments, prominent international economists consider past and present interpretations of the meaning of international policy coordination; conditions necessary for coordination to be beneficial both to the direct participants and the global economy; influential factors for the quantitative impact of coordination; obstacles to coordination; the most—and least—effective methods of coordination; and future directions of the coordination process, including processes associated with greater fixity of exchange rates. These studies will be readily accessible to policymakers, while offering sophisticated analyses to interested scholars of the global economy.
Download or read book Economic Interdependence and Flexible Exchange Rates written by Jagdeep S. Bhandari and published by Mit Press. This book was released on 1983-02-01 with total page 566 pages. Available in PDF, EPUB and Kindle. Book excerpt: Distinguished economists review how the 1973 shift from fixed exchange rates to flexible rates has influenced world economic interdependence.
Download or read book Exchange Rate Management Theory and Evidence written by Keith Pilbeam and published by Springer. This book was released on 1991-06-18 with total page 233 pages. Available in PDF, EPUB and Kindle. Book excerpt: An examination of the economic justification for foreign exchange market intervention, the potential for such intervention to stabilize an economy and the distinction between sterilized and non-sterilized intervention.
Download or read book Exchange Rate Policy and Interdependence written by Reuven Glick and published by Cambridge University Press. This book was released on 2007-10-18 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past thirty years the Pacific Basin region has become more integrated with the rest of the world and played an increasingly important role in the world economy. While much has been written on Pacific Basin trade and economic growth, relatively few studies have been published on the conduct of exchange rate and monetary policies in the economies of the region. These papers should be of interest to readers with an interest in broadening their understanding of different exchange rate arrangements as well as those wishing to deepen their knowledge of Pacific Basin economies.
Download or read book Exchange rate Management in Theory and Practice written by Victor E. Argy and published by . This book was released on 1982 with total page 374 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Exchange Rate Regimes and Policy Interdependence written by International Monetary Fund and published by . This book was released on 1983 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Optimal and Sustainable Exchange Rate Regimes written by Masahiro Kawai and published by International Monetary Fund. This book was released on 1992-11-01 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the question of how to design an optimal and sustainable exchange rate regime in a world economy of two interdependent countries. It develops a Barro-Gordon type two-country model and compares noncooperative equilibria under different assumptions of monetary policy credibility and different exchange rate regimes. Using a two-stage game approach to the strategic choice of policy instruments, it identifies optimal (in a Pare to sense) and sustainable (self-enforcing) exchange rate regimes. The theoretical results indicate that the choice of such regimes depends fundamentally on the credibility of monetary policy commitments by the two countries’ authorities. The nature of shocks to the economies and the substitutability between goods produced in the two countries also play some role. International coordination on instrument choice is necessary to design optimal and sustainable exchange rate regimes.
Download or read book Exchange Rate Regimes in the Modern Era written by Michael W. Klein and published by MIT Press. This book was released on 2012-08-24 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt: An analysis of the operation and consequences of exchange rate regimes in an era of increasing international interdependence. The exchange rate is sometimes called the most important price in a highly globalized world. A country's choice of its exchange rate regime, between government-managed fixed rates and market-determined floating rates has significant implications for monetary policy, trade, and macroeconomic outcomes, and is the subject of both academic and policy debate. In this book, two leading economists examine the operation and consequences of exchange rate regimes in an era of increasing international interdependence. Michael Klein and Jay Shambaugh focus on the evolution of exchange rate regimes in the modern era, the period since 1973, which followed the Bretton Woods era of 1945–72 and the pre-World War I gold standard era. Klein and Shambaugh offer a comprehensive, integrated treatment of the characteristics of exchange rate regimes and their effects. The book draws on and synthesizes data from the recent wave of empirical research on this topic, and includes new findings that challenge preconceived notions.
Download or read book The Psychology of the Foreign Exchange Market written by Thomas Oberlechner and published by John Wiley & Sons. This book was released on 2005-07-08 with total page 278 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book demystifies the foreign exchange market by focusing on the people who comprise it. Drawing on the expertise of the very professionals whose decisions help shape the market, Thomas Oberlechner describes the highly interdependent relationship between financial decision makers and news providers, showing that the assumption that the foreign exchange market is purely economic and rational has to be replaced by a more complex market psychology.
Download or read book The International Monetary System written by Peter B. Kenen and published by Cambridge University Press. This book was released on 1994-10-13 with total page 370 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the two decades prior to publication of this 1994 book, international monetary relations had been characterised by latent instability, and then by severe tensions. Yet the issue of reforming the international monetary system does not appear on the agenda of the policy makers of the major countries involved. The International Monetary System tries to analyse this apparent contradiction. It brings together contributions from some of the most authoritative academic economists and monetary officials, and examines each of the fundamental functions of the international monetary system. There is broad support for improving present monetary arrangements with the aim of ensuring more stable conditions in monetary and financial markets and of promoting the orderly adjustment of payments disequilibria. For political reasons a fully-fledged reform exercise is unlikely, but very few experts seem to like the status quo. This book provides the reader with a comprehensive account of the institutional and policy changes required to manage an increasingly integrated and interdependent global monetary and financial system.
