Advertisement

Concepts and Implications of International Monetary Co-ordination

  • Manfred Willms
Chapter
  • 75 Downloads

Abstract

Much dissatisfaction has evolved with respect to the functioning of the floating exchange rate system that has governed international monetary relations between the major industrialised countries since 1973. In particular, it is claimed that this system has led to substantial short-run volatility of exchange rates and to long-lasting misalignments. The impact of these fluctuations and real exchange rate changes on output, employment and the price level is seen as a central problem of flexible exchange rates.

Keywords

Exchange Rate Monetary Policy Fiscal Policy Real Exchange Rate Money Demand 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Adams, C. and D. Gros (1986) ‘The Consequences of Real Exchange Rate Rules for Inflation: Some Illustrative Examples’, IMF Staff Papers, vol. 33, pp. 439–76.CrossRefGoogle Scholar
  2. Baker, J. A. (1986) Statement before the International Trade Sub-committee of the Senate Finance Committee and the International Finance and Monetary Policy Sub-committee of the Senate Banking Committee, U.S. Treasury News, (Washington DC), 13 May.Google Scholar
  3. Blanchard, O. J. (1979) ‘Speculative Bubbles, Crashes and Rational Expectations’, Economics Letters, vol. 3, pp. 387–9.CrossRefGoogle Scholar
  4. Branson, W. H. (1988) ‘Sources of Misalignment in the 1980s’, in R. C. Marston (ed.), Misalignment of Exchange Rates: Effects on Trade and Industry (Chicago and London: ) pp. 9–31.Google Scholar
  5. Branson, W. H. and J. P. Love (1988) ‘U.S. Manufacturing and the Real Exchange Rate’, in R. C. Marston (ed.), Misalignment of Exchange Rates: Effects on Trade and Industry (Chicago and London: ) pp. 241–70.Google Scholar
  6. Camen, U. and H. Genberg (1987) Over- and Undervalued Currencies: Theory, Measurement, and Policy Implications (Geneva:).Google Scholar
  7. Crockett, A. and M. Goldstein (1987) ‘Strengthening the International Monetary System: Exchange Rates, Surveillance, and Objective Indicators’, IMF Occasional Paper, no. 50 (Washington DC).Google Scholar
  8. Dornbusch, R. (1976) ‘Expectations and Exchange Rate Dynamics’, Journal of Political Economy, vol. 84, pp. 1161–74.CrossRefGoogle Scholar
  9. Dornbusch, R. (1982) ‘Equilibrium and Disequilibrium Exchange Rates’, Zeitschrift fur Wirtschafts- und Sozialwissenschaften, vol. 102, pp. 573–99.Google Scholar
  10. Dornbusch, R. (1986) ‘Special Exchange Rates for Capital Account Transactions’, World Bank Economic Review, vol. 1, pp. 3–33.CrossRefGoogle Scholar
  11. Dornbusch, R. (1988) ‘Doubts about the McKinnon Standard’, Journal of Economic Perspectives, vol. 2, no. 1.Google Scholar
  12. Dornbusch, R. and J. Frankel (1987) ‘The Flexible Exchange Rate System: Experience and Alternatives’, NBER Working Paper, no. 2464 (Cambridge, Mass.) December.Google Scholar
  13. Edison, H. (1987) ‘Purchasing Power Parity in the Long-Run: A Test of the Dollar/Pound Exchange Rate (1890–1978)’, Journal of Money, Credit and Banking, vol. 19, pp. 376–87.CrossRefGoogle Scholar
  14. File, W. (1985) ‘Kurz- und langfristige Wirkungen einer wechselkursorientierten Geldpolitik’, in: W. File and C. Köhler (eds), Stabilisierung des Währungssystems (Berlin).Google Scholar
  15. Fischer, S. (1987) ‘International Macroeconomic Policy Coordination’, NBER Working Paper, no. 2244 (Cambridge, Mass.).Google Scholar
  16. Frankel, J. and K. Froot (1987) ‘Using Survey Data to Test Standard Propositions Regarding Exchange Rate Expectations’, American Economic Review, vol. 77, pp. 133–53.Google Scholar
  17. Frankel, J. and A. McArthur (1988) ‘Political vs. Currency Premia in International Real Interest Rate Differentials: A Study of Forward Rates for 24 Countries’, European Economic Review, vol. 32, pp. 1027–30.CrossRefGoogle Scholar
  18. Frankel, J. and K. E. Rockett (1988) ‘International Macroeconomic Policy Coordination when Policy Makers do not Agree on the True Model’, American Economic Review, vol. 78, pp. 318–40.Google Scholar
  19. French, K. and R. Roll (1986) ‘Stock Return Variances: The Arrival of Information and the Reaction of Traders’, Journal of Financial Economics, vol. 17, pp. 5–26.CrossRefGoogle Scholar
  20. Frenkel, J. A. (1981) ‘The Collapse of Purchasing Power Parities During the 1970s’, European Economic Review, vol. 16.Google Scholar
  21. Frenkel, J. A. and M. Goldstein (1986) ‘A Guide to Target Zones’, NBER Working Paper no. 2113 (Cambridge, Mass.).Google Scholar
  22. Frenkel, J. A. and M. Goldstein (1988) ‘Fundamental Issues in the Functioning of the International Monetary System’, Paper prepared for the Malente Symposium on ‘The International Monetary System and World Economic Developments’, Malente.Google Scholar
  23. Frenkel, J. A., M. Goldstein and P. Masson (1988) International Coordination of Economic Policies: Scope, Methods, and Effects (Washington DC).CrossRefGoogle Scholar
  24. Friedman, M. (1953) ‘The Case for Flexible Exchange Rates’, in Essays in Positive Economics (Chicago) pp. 157–201.Google Scholar
  25. Gaab, W. (1983) Devisenmärkte and Wechselkurse: Eine theoretische und empirische Analyse (Berlin).CrossRefGoogle Scholar
  26. Genberg, H. (1984) ‘On Choosing the Right Rules for Exchange-Rate Management’, The World Economy, vol. 7, pp. 391–406.CrossRefGoogle Scholar
  27. Haberler, G. (1954) Currency Convertibility (Washington, DC).Google Scholar
  28. Johnson, H. G. (1969) ‘The Case for Flexible Exchange Rates, 1969’, Federal Reserve Bank of St. Louis Review, vol. 51, no. 6, pp. 12–45.Google Scholar
  29. McKinnon, R. I. (1974) A New Tripartite Agreement or a Limping Dollar Standard? Essays in International Finance, no. 106 (Princeton, NJ: Princeton University Press).Google Scholar
  30. McKinnon, R. I. (1984) An International Standard for Monetary Stabilisation. Policy Analyses in International Economics, no. 8 (Washington DC).Google Scholar
  31. McKinnon, R. I. (1988) ‘Monetary and Exchange Rate Policies for International Financial Stability: A Proposal’, Journal of Economic Perspectives, vol. 2, no. 1, pp. 83–103.CrossRefGoogle Scholar
  32. Meese, R. and K. Rogoff (1983) ‘Empirical Exchange Rate Models of the Seventies: Do they Fit Out of Sample?’, Journal of International Economics, vol. 14, pp. 3–24.CrossRefGoogle Scholar
  33. Oudiz, G. and J. Sachs (1984) ‘Macroeconomic Policy Coordination Among the Industrialised Economies’, Brookings Papers in Economic Activity, vol. 1, pp. 1–64.CrossRefGoogle Scholar
  34. Poole, W. (1970) ‘Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model’, Quarterly Journal of Economics, vol. 84, pp. 197–216.CrossRefGoogle Scholar
  35. Tobin, J. (1978) ‘A Proposal for International Monetary Reform’, Eastern Economic Journal, vol. 3, pp. 153–9.Google Scholar
  36. Tobin, J. (1987) ‘Agenda for International Coordination of Macroeconomic Policies’, in International Monetary Cooperation: Essays in Honour of Henry C. Wallich, Essays in International Finance, no. 169 (Princeton, NJ: Princeton University Press).Google Scholar
  37. Vaubel, R. (1983) ‘Coordination or Competition among National Macro-economic Policies’, in F. Machlup, G. Fels and H. Müller-Groeling (eds), Reflections on a Troubled World Economy, Essays in Honour of Herbert Giersch (London).Google Scholar
  38. Williamson, J. (1985) The Exchange Rate System. Policy Analyses in International Economics, no. 5, (Washington DC).Google Scholar
  39. Williamson, J. (1986) Target Zones and Indicators as Intruments for International Policy Coordination, A report to the Group of 24 (Washington DC) September.Google Scholar
  40. Williamson, J. and M. H. Miller (1987) Targets and Indicators: A Blueprint for the International Coordination of Economic Policy. Policy Analyses in International Economics, no. 22 (Washington DC).Google Scholar
  41. Willms, M. (1987) ‘The DM/Dollar Rate and the Exchange Market Intervention Policy of the Deutsche Bundesbank 1974–1984’, in D. R. Hodgman and G. Wood, (eds), Monetary and Exchange Rate Policy (London) pp. 193–219).Google Scholar

Copyright information

© Stephen F. Frowen 1993

Authors and Affiliations

  • Manfred Willms

There are no affiliations available

Personalised recommendations