scholarly journals The Implementation Model of a Consensual Refnancing Rate for the BRICS Countries

2019 ◽  
Vol 23 (1) ◽  
pp. 66-78
Author(s):  
М. V. Zharikov
Keyword(s):  
Central Bank ◽  
International Monetary System ◽  
Negative Consequences ◽  
Lender Of Last Resort ◽  
Monetary Policies ◽  
Implementation Model ◽  
Brics Countries ◽  
Monetary System ◽  
Growth Limits ◽  
National Economies

The relevance of the research subject is due to the fact that countries look for adaptive approaches to the turbulence of the international monetary system (IMS). The approaches of the BRICS countries to the IMS transformation have been fully studied in the economic literature. However, there are no researches on foundation of an advanced central bank as an alternative supranational monetary institution in the new international fnancial architecture. The article objective is to develop a mechanism for setting up the refnancing rate for the BRICS countries in case of the integration hypothesis the currency union, and the lender of last resort and the general unit of accounts. A liberal pricing method has been used to create the model. There is a hypothesis that the refnancing rate should be set at a higher level than that of the People’s Bank of China’s and lower than that of Brazil, Russia, India and South Africa’s, since it has comparative advantages in crediting. The mechanism of the consensual rate of the BRICS countries is based on the assumption that the amount of money in circulation may vary by an amount that does not cause negative consequences for national economies. The fundamental difference between the results of this study is in optimization of the credit resources flow, which implies their distribution within certain limits and in several stages. The main provisions indicate that the optimal rate may provide a background for the coordination of monetary policies in the BRICS countries within the Central bank. The practical relevance of the model is that it can be used to establish the refnancing rate in the BRICS countries. The model suggests that the optimal crediting value in the BRICS countries should ft the GDP growth limits. To conclude, the optimal refnancing rate is a key issue in forming a monetary union and a common currency in the BRICS countries.

Article 138 TFEU

2019 ◽  
Author(s):  
Leo Flynn
Keyword(s):  
Central Bank ◽  
Monetary Union ◽  
Financial Institutions ◽  
European Central Bank ◽  
International Monetary System ◽  
Economic And Monetary Union ◽  
International Financial Institutions ◽  
European Central ◽  
Monetary System

Article 111(4) EC In order to secure the euro’s place in the international monetary system, the Council, on a proposal from the Commission, shall adopt a decision establishing common positions on matters of particular interest for economic and monetary union within the competent international financial institutions and conferences. The Council shall act after consulting the European Central Bank.

scholarly journals Le système monétaire européen à la lumière de l’expérience et de la théorie monétaires

2005 ◽  
Vol 12 (3) ◽  
pp. 465-474 ◽  
Author(s):  
Roger Dehem
Keyword(s):  
Gold Standard ◽  
International Monetary System ◽  
Macroeconomic Policies ◽  
Monetary Policies ◽  
Bretton Woods ◽  
The Past ◽  
Monetary System ◽  
The Sixties ◽  
History Of ◽  
The One

In the light of monetary experience and theory, the EMS appears to be unsustainable. Monetary history of the past sixty years shows that every attempt to stabilise the international monetary System has been frustrated as a consequence of divergent egocentric monetary policies. The breakdown of the rules of the gold standard game in the twenties, as well as the use of money as an instrument in national macroeconomic policies under the Bretton Woods regime have ultimately led to the demise of the fixed exchange rates System. In the sixties, European views on monetary policies were quite divergent, but in the seventies institutional attempts were made to bring them apparently into line. The "snake" arrangements, initiated in 1972, soon degenerated. The more ambitious attempt of 1979, the institutionally more elaborate EMS, suffers from the same basic weakness as all the previous ones. It lacks a common monetary standard, such as the one proposed in the 1975 Ail-Saints Manifesto. Such a standard is a necessary and a sufficient condition for a sustainable common monetary System.

scholarly journals Developments in Monetary Policies before and after the Recent Financial Crisis and the Change in the Role of Central Banks

2014 ◽  
Author(s):  
Zekayi Kaya ◽  
Erkan Tokucu
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Financial Stability ◽  
Policy Instruments ◽  
Central Banks ◽  
Price Stability ◽  
Lender Of Last Resort ◽  
Monetary Policies ◽  
Recent Financial Crisis

During the historical process, application of the monetary policies and the roles of the central banks have changed within the framework of the developments in the world economy, problems encountered and the economic policies as a solution to these problems. The financial crises after 1990 and the recent financial crisis as the biggest experienced one after 1930s, caused an increase in the importance of the task of providing financial stability besides price stability and in this context in the function of “lender of last resort” of the central bank. The crisis required using new policy instruments in addition to interest rate instrument which was not sufficient enough in providing financial stability and the roles of the central banks in providing financial stability changed. In this study, applications of monetary policies and the changing role of the central banks will be examined. Within this framework, traditional and non-traditional instruments will be explained and the problems that can be confronted by a central bank when providing price stability besides financial stability will be remarked.

What Remains of the Case for Flexible Exchange Rates? (Invited Lecture)

1988 ◽  
Vol 27 (4I) ◽  
pp. 425-450 ◽  
Author(s):  
David P. Laidler
Keyword(s):  
Exchange Rates ◽  
Vietnam War ◽  
International Monetary System ◽  
West Germany ◽  
Policy Regime ◽  
Monetary Policies ◽  
Bretton Woods ◽  
Monetary System ◽  
National Governments ◽  
Flexible Exchange Rates

In the 1950s and 1960s, there was much support among academic economists for abandoning the Bretton Woods System in favour of a system of flexible exchange rates. Such proposals had their opponents, of course, some of whom, for example Robert Triffin (l960), believed that, if anything. the Bretton Woods System granted too much, rather than too little, scope to individual national governments to vary their exchange rates. Nevertheless, at that time, the weight of professional opinion was against them, and when exchange rate flexibility was adopted in the 1970s, economists by and large welcomed it. This change in policy regime was not, however, the outcome of reforms undertaken in the light of academic arguments; although these did have some influence in some places, not least the United Kingdom.' Nevertheless, the single most important factor leading to the demise of the Bretton Woods System was not the acceptance of any academic arguments about how to make the international monetary system function more’ smoothly. It was something much more down to earth, namely the unwillingness of certain governments, notably that of West Germany, to accept the balance of payments and hence domestic inflationary consequences of United States fiscal and monetary policies associated with the Vietnam War.

The Bundesbank: Germany's Central Bank in the International Monetary System

1991 ◽  
Vol 70 (3) ◽  
pp. 166
Author(s):  
William Diebold ◽  
Ellen Kennedy
Keyword(s):  
Central Bank ◽  
International Monetary System ◽  
Monetary System

scholarly journals The Economic War Between USA and China and Future Scenarios

2020 ◽  
pp. 278-299
Author(s):  
Islam Mohamed Mahmoud ◽  
Marwan Waheed Abdel Hamid
Keyword(s):  
Global Economy ◽  
Developing Economies ◽  
Negative Impact ◽  
International Monetary System ◽  
Monetary Policies ◽  
Monetary System ◽  
Effective Role ◽  
Common Interests ◽  
Competitive Reduction ◽  
The Biggest Loser

With the expansion of foreign trade and the burning of competition between countries, the value of currencies began to play an effective and effective role in the global economy, as some countries resorted to reducing the exchange rates of their currencies against the currencies of other countries in order to make their exports more competitive, and the manifestations of the conflict between America and China over the prices of Exchange their currencies, as America accuses China of interfering in exchange and evaluating the yuan under its real value. While the Chinese view the expansionary and extremist monetary policies of the Federal Reserve as an act of currency manipulation, some fear that this conflict will develop into a competitive reduction race that could cause global trade shrinkage and stagnation, and undermine confidence internationally in the international monetary system, which It causes a global financial and economic crisis with a profound negative impact on the entire global economy and the developing economies in particular, which some believe will be the biggest loser of that conflict. The relationship between Washington and Beijing is currently witnessing a wave of political and strategic escalation, especially from the American side, and despite this this the escalation is not new from its predecessors during the past period. But in terms of form, it may be the most severe, but it will not reach the war. Both countries need each other, whereas as much as there are tensions and fundamental differences, it is matched by the existence of common interests.

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