 Unexpected Real Consequences of Floating Exchange RatesChapter 2 in The Reconstruction of International Monetary Arrangements, 1987, pp 21-45 from Palgrave Macmillan Abstract: Abstract After a decade of floating exchange rates, international monetary reform is again in the air, and it is thus timely to ask how well (or badly) the current system is functioning. But compared to what? Because the current monetary arrangements came into effect following years of vigorous debate on the merits of exchange rate flexibility, some observers appear to forget that these arrangements were not in reality ‘adopted’, let alone ‘designed.’2 Rather, they were initiated by the collapse of the Bretton Woods regime and given markedly after-the-fact approval by an International Monetary Fund whose members were unable to agree upon an alternative, i.e. any system imposing even minimal restraints on the national policies of members. Since the present time seems no more propitious than the early 1970s for the willing sacrifice of national sovereignty by IMF members,3 any argument for system reform must be solidly grounded in the accumulated experience of floating, not the dogmas of the Bretton Woods era. Keywords: Exchange Rate; Foreign Direct Investment; Exchange Rate Regime; Foreign Exchange Market; Flexible Exchange Rate (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-18513-9_3 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-18513-9_3 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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