EconPapers    
Economics at your fingertips  
 

Macroeconomic Adjustment under Bretton Woods and the Post-Bretton-Woods Float: An Impulse-Response Analysis

Tamim Bayoumi and Barry Eichengreen

Economic Journal, 1994, vol. 104, issue 425, 813-27

Abstract: The authors analyze the comparative macroeconomic performance of the Bretton Woods System of pegged exchange rates and the post-Bretton Woods float. The change in volatility of prices and output following the shift to floating does not appear to have been associated with differences in underlying aggregate-supply and aggregate-demand shocks. Rather, under fixed rates, monetary policy had to be adjusted to stabilize the exchange rate, flattening the demand curve and thereby increasing the output response and reducing the price response to aggregate supply shocks. Following the shift to floating, monetary policy was freed, steepening the demand curve and increasing price volatility relative to output volatility. Copyright 1994 by Royal Economic Society.

Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (69)

Downloads: (external link)
http://links.jstor.org/sici?sici=0013-0133%2819940 ... 0.CO%3B2-8&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: Macroeconomic Adjustment under Bretton Woods and the Post-Bretton-Woods Float: An Impulse-Response Analysis (1993) Downloads
Working Paper: Macroeconomic Adjustment under Bretton Woods and the Post-Bretton-Woods Float: An Impulse-Response Analysis (1993) Downloads
Working Paper: Macroeconomic Adjustment Under Bretton Woods and the Post-Bretton-Woods Float: An Impulse-Response Analysis (1992) Downloads
Working Paper: Macroeconomic Adjustment Under Bretton Woods and the Post-Bretton-Woods Float: An Impulse-Response Analysis (1992) Downloads
Working Paper: Macroeconomic Adjustment Under Bretton Woods and the Post-Bretton Woods Float: An Impulse-Response Analysis (1992) Downloads
Working Paper: Macroeconomic Adjustment Under Bretton Woods and the Post-Bretton-Woods Float: An Impulse- Response Analysis (1992) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecj:econjl:v:104:y:1994:i:425:p:813-27

Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0013-0133

Access Statistics for this article

Economic Journal is currently edited by Martin Cripps, Steve Machin, Woulter den Haan, Andrea Galeotti, Rachel Griffith and Frederic Vermeulen

More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().

 
Page updated 2025-03-22
Handle: RePEc:ecj:econjl:v:104:y:1994:i:425:p:813-27