Global Effects of National Stabilization Policies under Fixed and Floating Exchange Rates

1983 ◽  
pp. 33-60
Author(s):  
Torsten Persson
Keyword(s):  
Exchange Rates ◽  
Stabilization Policies ◽  
Floating Exchange Rates

Fiscal and Monetary Policy for Internal and External Stabilization Under Fixed and Floating Rates in the Presence of Capital Movements

1975 ◽  
Vol 14 (1) ◽  
pp. 23-32
Author(s):  
Rattan J. Bhatia
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Exchange Rates ◽  
Capital Mobility ◽  
Capital Movements ◽  
Positive Effects ◽  
Stabilization Policies ◽  
Floating Exchange Rates ◽  
Floating Rates ◽  
Fiscal And Monetary Policy

The effect of fiscal and monetary stabilization policies has been exten¬sively discussed, notably by Mundell [4,5] and Fleming [1]. Mundell discussed the problem under the special assumption of a perfect interest-elastic mobility of international capital flows, but Fleming assumed a less than perfect capital mobility. Mundell contends that "fiscal policy completely loses its force as a domestic stabilizer when the exchange rate is allowed to fluctuate," while monetary policy will have appreciable effects on employment and output. Under fixed exchange rates, on the other hand, monetary policy is shown by Mundell to be ineffective while any positive effects of fiscal policy would be conditional upon the country being able to sustain large trade deficits by either borrowing abroad or running down its accumulated international reserves. Fleming also demonstrates that the expansionary effects of monetary policy will be greater under floating exchange rates than under fixed rates and that it is uncertain whether the effects of fiscal policy will be less or more expansionary under floating rates than under fixed rates. In all but extreme cases, monetary policy is shown to exert a more expansionary influence under floating rates.

scholarly journals Floating Exchange Rates after Ten Years

1983 ◽  
Vol 1983 (1) ◽  
pp. 1 ◽  
Author(s):  
Jeffrey R. Shafer ◽  
Bonnie E. Loopesko ◽  
Ralph C. Bryant ◽  
Rudiger Dornbusch
Keyword(s):  
Exchange Rates ◽  
Floating Exchange Rates

scholarly journals Floating exchange rates are no panacea

1971 ◽  
Vol 6 (8) ◽  
pp. 235-237
Author(s):  
Raymond Barre
Keyword(s):  
Exchange Rates ◽  
Floating Exchange Rates
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