《国际货币与金融经济学》ppt03
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3
The Gold Standard
• Pegging the value of each currency to gold, established an exchange rate system by indirectly establishing exchange rates. • The mint parity rates could be used to determine the exchange rate.
Concepts
• Monetary Order: A set of laws and regulations that establishes the framework within which individuals conduct and settle transactions. • Exchange-Rate System: A set of rules that determine the international value of a nation’s currency. • Convertibility: The ability to freely exchange a currency for a reserve commodity or reserve currency.
– international monetary cooperation – effective exchange rate arrangements
• The IMF provides
– temporary and long-term financial for countries experiencing balance-of-payments difficulties – surveillance of macroeconomic conditions and policies.
12
Economic Summits
• November 1975 French President, Valery Giscard d’Estaing hosts the first economic summit. • Invited France, US, UK, Germany, Japan (G5). • Italy added to represent the EU (G6). • Agreed to a system of flexible exchange rates and that countries would intervene when needed to ensure stability.
INTERNATIONAL MONETARY AND FINANCIAL ECONOMICS Third Edition
Exchange Rate Systems
Past to Present
Joseph P. Daniels David D. VanHoose
Copyright © South-Western, a division of Thomson Learning. All rights reserved.
5
Gold Standard: Costs and Benefits
• The gold standard promoted long-run stability of nation’s money stock and long-run stability of real output, prices, and the exchange rate. • It can be very costly to maintain a gold standard because of significant resource costs, such as mining and transportation costs. • The political costs of maintaining the gold standard became too significant for nations such as the United Kingdom. By 1936 most nations had left the gold standard.
9
Changes in Parity Rates
• A devaluation is a situation in which a nation changes the parity value of its currency so that it takes a greater number of domestic currency units to purchase the foreign currency. • A revaluation is a situation in which a nation changes the parity value of its currency so that it takes a greater number of domestic currency units to purchase the foreign currency.
14
Summits “Institutionalized”
• 1976 President Ford hosts a second summit. • He invites Canada in addition to the G6 countries (G7). • Summits now occur ever summer, rotating from country to country. • British PM, Tony Blair, added President Yeltsin (Russia) as a “full member” for the 1998 Birmingham Summit (G8).
10
Collapse of Bretton Woods System
•The U.S. balance on goods and services shifted to a surprising deficit in 1971. These deficits supported speculations that the dollar was overvalued. •Because of massive gold outflows from the United States, President Nixon suspended convertibility of the dollar in August 1971. This ended the Bretton Woods System.
13
ຫໍສະໝຸດ Baidu
Jamaica Accords
• January 1976 meeting of IMF member country nations. • Amended the articles of agreement of the IMF to recognize flexible exchange rate systems. • Member nations could adopt an arrangement of their own choice.
11
Smithsonian Agreement
• In an attempt to restore order to the exchange market, 10 leading nations met at the Smithsonian on December 16 and 17, 1971. • The “Smithsonian Agreement” was a new system of exchange-parity values. Although this new system was still a dollar-standard exchange-rate system, the dollar, was still not convertible to gold. • Nixon hailed this agreement as the “most significant monetary agreement in the history of the world.” • Smithsonian Agreement collapsed within 15 months and a de facto system of floating rates emerged.
8
The Bretton Woods System
•The value of the dollar was pegged to gold and the dollar was convertible to gold at the mint parity rate. •A pegged exchange rate system in which a country pegs the value of its currency to the currency of another nation. •In practice a dollar-exchangerate system as nations pegged to the dollar and freely exchanged the domestic currency for the dollar at the parity rate.
4
Gold Standard and Exchange Values
• Pegging the value of each currency to gold established an exchange rate system. • The mint parity rates determined the exchange value between two currencies.
– The International Monetary Fund – The International Bank for Reconstruction and Development, or “World Bank” – The General Agreement on Tariffs and Trade, or “GATT” – The Bretton Woods Exchange Rate System
2
The Gold Standard
• Came into effect in the mid-1870s when most of the major economies unilaterally pegged to gold. • Nations fixed the value of their currency relative to gold via a mint parity rate. • Established the convertibility of a currency for gold. • Gold parity rates determined the exchange rate between currencies.
7
The International Monetary Fund
• A multinational organization of more than 180 member nations that seeks to encourage global growth. • The IMF attempts to promote
6
The Bretton Woods Agreement
• The 1944 conference was originally named the “International Monetary and Financial Conference of the United and Associated Nations,” but became better known as the Bretton Woods Conference. • This conference established:
The Gold Standard
• Pegging the value of each currency to gold, established an exchange rate system by indirectly establishing exchange rates. • The mint parity rates could be used to determine the exchange rate.
Concepts
• Monetary Order: A set of laws and regulations that establishes the framework within which individuals conduct and settle transactions. • Exchange-Rate System: A set of rules that determine the international value of a nation’s currency. • Convertibility: The ability to freely exchange a currency for a reserve commodity or reserve currency.
– international monetary cooperation – effective exchange rate arrangements
• The IMF provides
– temporary and long-term financial for countries experiencing balance-of-payments difficulties – surveillance of macroeconomic conditions and policies.
12
Economic Summits
• November 1975 French President, Valery Giscard d’Estaing hosts the first economic summit. • Invited France, US, UK, Germany, Japan (G5). • Italy added to represent the EU (G6). • Agreed to a system of flexible exchange rates and that countries would intervene when needed to ensure stability.
INTERNATIONAL MONETARY AND FINANCIAL ECONOMICS Third Edition
Exchange Rate Systems
Past to Present
Joseph P. Daniels David D. VanHoose
Copyright © South-Western, a division of Thomson Learning. All rights reserved.
5
Gold Standard: Costs and Benefits
• The gold standard promoted long-run stability of nation’s money stock and long-run stability of real output, prices, and the exchange rate. • It can be very costly to maintain a gold standard because of significant resource costs, such as mining and transportation costs. • The political costs of maintaining the gold standard became too significant for nations such as the United Kingdom. By 1936 most nations had left the gold standard.
9
Changes in Parity Rates
• A devaluation is a situation in which a nation changes the parity value of its currency so that it takes a greater number of domestic currency units to purchase the foreign currency. • A revaluation is a situation in which a nation changes the parity value of its currency so that it takes a greater number of domestic currency units to purchase the foreign currency.
14
Summits “Institutionalized”
• 1976 President Ford hosts a second summit. • He invites Canada in addition to the G6 countries (G7). • Summits now occur ever summer, rotating from country to country. • British PM, Tony Blair, added President Yeltsin (Russia) as a “full member” for the 1998 Birmingham Summit (G8).
10
Collapse of Bretton Woods System
•The U.S. balance on goods and services shifted to a surprising deficit in 1971. These deficits supported speculations that the dollar was overvalued. •Because of massive gold outflows from the United States, President Nixon suspended convertibility of the dollar in August 1971. This ended the Bretton Woods System.
13
ຫໍສະໝຸດ Baidu
Jamaica Accords
• January 1976 meeting of IMF member country nations. • Amended the articles of agreement of the IMF to recognize flexible exchange rate systems. • Member nations could adopt an arrangement of their own choice.
11
Smithsonian Agreement
• In an attempt to restore order to the exchange market, 10 leading nations met at the Smithsonian on December 16 and 17, 1971. • The “Smithsonian Agreement” was a new system of exchange-parity values. Although this new system was still a dollar-standard exchange-rate system, the dollar, was still not convertible to gold. • Nixon hailed this agreement as the “most significant monetary agreement in the history of the world.” • Smithsonian Agreement collapsed within 15 months and a de facto system of floating rates emerged.
8
The Bretton Woods System
•The value of the dollar was pegged to gold and the dollar was convertible to gold at the mint parity rate. •A pegged exchange rate system in which a country pegs the value of its currency to the currency of another nation. •In practice a dollar-exchangerate system as nations pegged to the dollar and freely exchanged the domestic currency for the dollar at the parity rate.
4
Gold Standard and Exchange Values
• Pegging the value of each currency to gold established an exchange rate system. • The mint parity rates determined the exchange value between two currencies.
– The International Monetary Fund – The International Bank for Reconstruction and Development, or “World Bank” – The General Agreement on Tariffs and Trade, or “GATT” – The Bretton Woods Exchange Rate System
2
The Gold Standard
• Came into effect in the mid-1870s when most of the major economies unilaterally pegged to gold. • Nations fixed the value of their currency relative to gold via a mint parity rate. • Established the convertibility of a currency for gold. • Gold parity rates determined the exchange rate between currencies.
7
The International Monetary Fund
• A multinational organization of more than 180 member nations that seeks to encourage global growth. • The IMF attempts to promote
6
The Bretton Woods Agreement
• The 1944 conference was originally named the “International Monetary and Financial Conference of the United and Associated Nations,” but became better known as the Bretton Woods Conference. • This conference established: