Exchange Rate Misalignment and International Law PDF Download

Author: Claus D. Zimmermann
Publisher:
ISBN:
Category :
Languages : en
Pages : 226

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Author: Richard C. Marston
Publisher: University of Chicago Press
ISBN: 0226507254
Category : Business & Economics
Languages : en
Pages : 332

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Economists writing on flexible exchange rates in the 1960s foresaw neither the magnitude nor the persistence of the changes in real exchange rates that have occurred in the last fifteen years. Unexpectedly large movements in relative prices have lead to sharp changes in exports and imports, disrupting normal trading relations and causing shifts in employment and output. Many of the largest changes are not equilibrium adjustments to real disturbances but represent instead sustained departures from long-run equilibrium levels, with real exchange rates remaining "misaligned" for years at a time. Contributors to Misalignment of Exchange Rates address a series of questions about misalignment. Several papers investigate the causes of misalignment and the extent to which observed movements in real exchange rates can be attributed to misalignment. These studies are conducted both empirically, through the experiences of the United States, Great Britain, Japan, and the countries of the European Monetary System, and theoretically, through models of imperfect competition. Attention is then turned to the effects of misalignment, especially on employment and production, and to detailed estimates of the effects of changes in exchange rates on several industries, including the U.S. auto industry. In response to the contention that there is significant "hysteresis" in the adjustment of employment and production to changes in exchange rates, contributors also attempt to determine whether the effects of misalignment can be reversed once exchange rates return to earlier levels. Finally, the issue of how to avoid—or at least control—misalignment through macroeconomic policy is confronted.

Author: Mr.Joseph Gold
Publisher: International Monetary Fund
ISBN: 1475506929
Category : Business & Economics
Languages : en
Pages : 500

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This volume, by Joseph Gold, discusses some of the major letgal effects of fluctuating exchange rates in both public international law and national law. The problems and similarities in the solutions are reviewed, and the author recommends further developments in the law.

Author: Joseph Gold
Publisher:
ISBN:
Category : Law
Languages : en
Pages : 620

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This work provides an extensive study of the treaty law and administration of exchange rates, including discussions of the International Monetary Fund's role and responsibilities.

Author: Niklas Manhart
Publisher: GRIN Verlag
ISBN: 3656337128
Category : Political Science
Languages : en
Pages : 141

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Master's Thesis from the year 2011 in the subject Politics - Topic: International Organisations, grade: 1,0, LMU Munich (Geschwister Scholl Institute for Political Sciences), language: English, abstract: Against the backdrop of the renminbi issue, this paper retraces the unique trajectory of the international law (IL) on exchange rates – from the lawlessness of the gold standard to a highly regulated system under Bretton Woods and back to the obscure arrangement that has prevailed ever since the Second Amendment of the IMF's Articles of Agreement. By employing the concept of legalization, it argues that international monetary stability is a public good which, as a collective action problem, provides strong incentives for cooperation. However, the analysis of the IMF's bilateral surveillance regime reveals that after the Second Amendment hard legalization no longer served the interests of the IMF membership, while the costs of hard legal rules tipped the scale in favour of soft commitments. Specifically, the paper finds that exchange rates are subject to high uncertainty costs stemming from measurement difficulties, complexity, goal incongruence and subjectivity; as well as sover-eignty costs due to reputational damage, distributional impact and loss of monetary power.

Author: Lawrence E. Hinkle
Publisher: World Bank Publications
ISBN: 019521126X
Category : Business & Economics
Languages : en
Pages : 638

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The study cautiously identifies exchange rate misalignment as an important element in most of the exchange rate crises that plagued the developing world during the last decade. Given that the increasing integration of world capital markets, has escalated the costs of such crises, a broad consensus emerged in recent years, that the overriding objective of exchange rate policy in developing countries, should be to avoid episodes of prolonged, and substantial misalignment, i.e., situations in which the actual real exchange rate differs significantly from its long-run equilibrium value. It was the Bank's involvement in one such misalignment episode, that eventually led to this book. Following an overview on the concepts and measurement of exchange rate misalignment, its impact on the purchasing power parity, and the relationship between the external real exchange rate (RER), and the two-good internal RER for tradables non-tradables, the study presents methodologies - empirical applications - for estimating the RER equilibrium. The study reaches an optimistic conclusion - that enough is known to identify cases of misalignment, and be able to sound clear warning signals. The implication for exchange rate policy is that ignorance about the empirical value of the equilibrium exchange rate, cannot be used to clinch arguments for extreme exchange arrangements, such as clean floats, currency boards, and "dollarization."

Author: H Fournier
Publisher: Martinus Nijhoff Publishers
ISBN: 9004633987
Category : Law
Languages : en
Pages : 241

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Author: Sebastian Edwards
Publisher: Johns Hopkins University Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 110

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This article analyzes the theory of equilibrium real exchange rates and defines misalignment as a deviation of the real exchange rate (RER) from its equilibrium level. The role of macroeconomic policies is then analyzed under three alternative nominal exchange rate regimes: predetermined nominal exchange rates; floating nominal rates; and dual or black market nominal exchange rates. This discussion points out how inconsistent macroeconomic policies often lead to real exchange rate misalignment. Corrective measures, including nominal devaluation and several alternative approaches, are then evaluated.

Author: Michelle Oliel
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 102

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There has been a growing concern in recent years over China's alleged unilateral and deliberate intervention in the foreign exchange market to prevent the appreciation of its currency relative to other currencies. By engaging in the alleged practice known as "currency manipulation," China's critics argue that its maintenance of an artificially undervalued currency in relation to other currencies provides an unfair competitive advantage to Chinese exporters, thereby thwarting global trade. As a result, the consistency of China's exchange rate arrangements and foreign exchange market intervention with its obligations - namely those under the International Monetary Fund (IMF) and the World Trade Organization (WTO) - have been called into question. Although exchange rate matters are traditionally viewed as falling under the jurisdiction of the IMF, the trade distorting effects of China's exchange rate policies have resulted in calls from lawyers, economists, industry leaders, and lawmakers alike, demanding remedial trade measures under the auspices of the WTO. By engaging in a historically- and empirically-informed legal analysis, this book explores whether China's foreign exchange arrangements and foreign exchange market intervention are consistent with its obligations under the Articles of Agreement of the IMF and whether international trade measures under the auspices of the WTO can be used as an appropriate response to quell China's alleged manipulation of its currency.

Author: Wei Dong
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages :

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