Abstract
Ever since the major currencies in the world abandoned the exchange-rate system of fixed but adjustable parities in March 1973, the international monetary system gained ample experience with floating rates. After a period of euphoria, negative — but not altogether unexpected — effects of the transition to floating became perceptible. This led to a reorientation regarding which exchange-rate system to prefer. The results of that reappraisal, however, have until now been only moderately satisfactory, especially because, in general, they came about from analyses of a partial nature. By “partial” is meant the pursuance of only one of the many economic objectives while neglecting appropriate adjustments in the accompanying economic policy.
The author is grateful to the conference participants, and especially to Mr. J.L. Schneider for comments on an earlier draft, and Hans Amman for skilful research assistance.
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Jager, H. (1985). The Optimal Exchange-Rate System and Its Significance for Economic Recovery. In: van Ewijk, C., Klant, J.J. (eds) Monetary Conditions for Economic Recovery. Financial and Monetary Policy Studies, vol 11. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-5149-5_10
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