Summary of alternative international monetary systems-英国国际货币

指导英国essay Summary of alternative international monetary systems
Gold Standard
Bretton Woods
Economic and Monetary Union
Classification of exchange rate system
 Fixed exchange rate
 Adjustable Peg (R +/- 1%)
 Single currency
Period of operation
 c.1870-1914 (i.e. c.44 years)
 1925-1932 (i.e. 7 years)
 1946-1972 (i.e. 27 years)
 1999- (i.e. 10 years to-date)
International coverage / membership
 Initially industrialised nations, but eventually global
 Global
 Regional (i.e. membership of the European Union as a prerequisite)
Base unit
 Gold (i.e. international currency)
 US dollar ↔ Gold (i.e. reserve asset)
 New currency → euro (i.e. international currency)
Derivation of exchange rates
 Each currency ↔ Gold and then to each other
 Each currency ↔ US dollar and then to each other
 ERs no longer exist between participating countries
Supporting policies for persistent BoP disequilibria
 Deflation or reflation to adjust price competitiveness
 ΔGold flows → ΔMs → ΔP
 Buy / sell own currency
 ECP policies
 IMF loans
 Parity realignment
 Deflation to regain price competitiveness
 Supply-side reforms to regain price competitiveness
Accompanying policies
 None
 None
 TEU fiscal policy rules on budget deficit (3% GDP) and national debt (60% GDP)
 Stability & Growth Pact (SGP)Summary of Traditional / Keynesian policy options
Policy
Focus
Assumptions
Policy options
Target BoP variables
Feasibility
Assessment
Expenditure changing policy (ECP)
Δ Y
Δ Y & P fixed
Y < YFE
reflation / deflation - using fiscal, monetary, exchange rate policies
Δ M
ECP still possible, but need to look at internal economic position and this could deteriorate
Holistic view of economy incorporating both internal and external balance policies.
However, dependent upon unknown / changing variables (e.g. elasticities for import and exports, time lags etc), lead to beggar-thy-neighbour problems.
Expenditure switching policy (ESP)
Δ P (i.e. Δ ER)
Y fixed & Δ P
Y < YFE
指导英国essaydevaluation / revaluation (but others exist)
Δ M & Δ X
ESP still possible, but only outside a fixed exchange rate system and therefore not EMU etc
Direct controls (DCs)
Δ P
tariffs, non-tariff barriers, exchange controls etc
Δ M & Δ X
Abandoned by most mainstream policymakers in light of WTO and free trade orthodoxy