Real Adjustment Processes under Floating Exchange Rates

Franz Gehrels

ISBN 10: 3642842003 / ISBN 13: 9783642842009

Published by Springer Berlin Heidelberg, 2011

About this Item

Druck auf Anfrage Neuware - Printed after ordering - Helmut Schneider 1. The Formulation of the Research Programme 1. In the late sixties the acceleration of US inflation revived the discussion of the fifties about the superiority of flexible exchange rates: The US balance of payments deteriorated since 1965, the dollar shortage after World War II changed to a dollar surplus. The import of US inflation by their main trading partners intensified political pressures so that at the beginning of the seventies most leading countries decided, contrary to the rules of the Bretton Woods agreement, to stop their intervention in the market for foreign exchange and to let the exchange rates be determined by market forces. It is worthwhile recalling that at that time one had only very limited experience with the regime of flexible exchange rates: The most important case, the floating of Canadian against the US dollar, could not be generalized to a world where nearly all important countries adhered to the regime of flexible exchange rates. ! - But one really had rich experience with destabilizing capital flows (or 'hot money') that forced monetary authorities to adjust exchange rates in a system of managed flexibility to the expecta tions of 'speculators'.

Seller Inventory # 9783642842009

Bibliographic Details

• Title: Real Adjustment Processes under Floating Exchange Rates
• Publisher: Springer Berlin Heidelberg
• Publication Date: 2011
• Language: English
• ISBN 10: 3642842003
• ISBN 13: 9783642842009
• Binding: Taschenbuch
• Condition: Neu
• Dimensions: 244W x 170H x 17D millimeters 244 millimeters width by 170 millimeters height by 17 millimeters depth
• Weight: 542 grams

About this title

Synopsis

Flexible exchange rates pose new adjustment problems for firms and for policy-makers. It is shown that (some) firms have developed successful strategies to meet the new challenges. On the other hand, government interventions are often inappropriate. The book deals with the different strategies developed by firms and policy-makers and their consequences.