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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
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