scholarly journals Theoretical Problems of the International Monetary System

1967 ◽  
Vol 7 (1) ◽  
pp. 1-28 ◽  
Author(s):  
Harry G. Johnson
Keyword(s):  
Economic Policy ◽  
Exchange Rates ◽  
International Monetary System ◽  
Balance Of Payments ◽  
The Other ◽  
Monetary Reform ◽  
Monetary System ◽  
System Part ◽  
The University ◽  
Policy Problems

Since 1958, international economists have been greatly concerned with the problem of international monetary reform. Research and writing on this problem has taken one or other of two broad forms. Those economists most concerned with policy have concerned themselves with emphasizing the need for inter¬national monetary reform and propounding workable (negotiable) schemes for achieving it. International monetary theorists, on the other hand, have been concerned with the theoretical policy problems of achieving and maintaining balance-of-payments equilibrium in the present internaticnal monetary system of fixed exchange rates. They have also become concerned with the problems of the system as a monetary system. This paper belongs to the latter category. It seeks to outline the main propositions of the analysis of international economic policy and policy problems that have been developed by economists working in this field in recent years. Part I is concerned with the economic policy problems of maintaining both full employ¬ment and balance-of-payments equilibrium, first for a single country on a fixed exchange rate, then for two or more countries linked in a multi-country inter¬national monetary system. Part II is concerned with certain features of the present international monetary system, viewed as a monetary system. The analysis of Part I is Keynesian, that of Part II classical, in approach. Both parts draw heavily on papers presented at the University of Chicago Conference on Inter¬national Monetary Problems organized by R. A. Mundell, held at Chicago in September 1966.

scholarly journals International Monetary Relations: Taking Finance Seriously

2017 ◽  
Vol 31 (3) ◽  
pp. 3-28 ◽  
Author(s):  
Maurice Obstfeld ◽  
Alan M. Taylor
Keyword(s):  
Exchange Rates ◽  
International System ◽  
Current System ◽  
International Monetary System ◽  
Balance Of Payments ◽  
Minimal Risk ◽  
International Liquidity ◽  
Monetary System ◽  
Financial Conditions ◽  
Monetary Relations

In this essay, we highlight the interactions of the international monetary system with financial conditions, not just with the output, inflation, and balance of payments goals usually discussed. We review how financial conditions and outright financial crises have posed difficulties for each of the main international monetary systems in the last 150 years or so: the gold standard, the interwar period, the Bretton Woods system, and the current system of floating exchange rates. We argue that even as the world economy has evolved and sentiments have shifted among widely different policy regimes, there remain three fundamental challenges for any international monetary and financial system: How should exchange rates between national currencies be determined? How can countries with balance of payments deficits reduce these without sharply contracting their economies and with minimal risk of possible negative spillovers abroad? How can the international system ensure that countries have access to an adequate supply of international liquidity—financial resources generally acceptable to foreigners in all circumstances? In concluding, we evaluate how the current international monetary system answers these questions.

Brauchen wir eine neue Weltwährungsordnung?

1996 ◽  
Vol 45 (3) ◽  
Author(s):  
Renate Ohr ◽  
Otmar Issing ◽  
Friedrich Thießen
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Exchange Rates ◽  
Political Action ◽  
Negative Impact ◽  
International Monetary System ◽  
Economic Policies ◽  
Monetary System ◽  
Policy Goals ◽  
High Volatility

AbstractThe economic policy forum discusses the question of whether we need a new international monetary system. Renate Ohr argues that various interventionist policy measures such as fixed exchange rates or a tobin-tax are inappropriate in order to avoid high volatility. Instead of a new international monetary system, a co-operative system which is flexible enough to react to disturbances and unequal developments is proposed by the author. This includes a better information basis about national economic policy goals and strategies. The existing “non-system” allows for sufficient flexibility to adjust to changing economic conditions. The role of the IMF should be strengthened by intensifying its function of surveillance and using it more as a forum for international co-operation.Otmar Issing goes even further than Ohr by rejecting any change to the existing international monetary system. He claims that flexible exchange rates neither had a negative impact on international trade nor on inflation. Furthermore he fears that a reform would result in the adoption of instruments reducing the elasticity of the system and its scope for adjustment. If politicians still demand political action, they should start with disciplining their national policies. In particular, the author suggests that they adopt a more steady monetary policy.Friedrich Thießen claims that national emotions prevent states from standardising different monetary areas within bi- or multilateral systems. Therefore he suggests a supranational monetary policy which makes it easier for states to give up sovereignty. Such a policy should include the following elements: neutrality towards nationally oriented economic policies, locational neutrality, innovative neutrality, hedge neutrality and profit neutrality. An international body such as the International Monetary Fund should be in charge of the monetary policy.

Apartheid and International Monetary Reform

1970 ◽  
Vol 32 (3) ◽  
pp. 338-346 ◽  
Author(s):  
Rodney J. Morrison
Keyword(s):  
International Monetary System ◽  
Balance Of Payments ◽  
Monetary Reform ◽  
International Liquidity ◽  
Black Africans ◽  
Adjustment Mechanism ◽  
Monetary System ◽  
Racial Policy

Apartheid and international monetary reform have received much attention in recent years yet littleof the discussion of these issues has linked them in any meaningful way. The call for changes in the international monetary system has been based upon an alleged insufficiency in international liquidity anda need for an adjustment mechanism for secular balance of payments disequilibria. Opposition to apartheid, South Africa's segregationist racial policy, has been based upon humanitarian concern for the condition of black Africans in that country.

Long-Term Growth and Short-Term Policy

1964 ◽  
Vol 29 ◽  
pp. 26-38 ◽  
Author(s):  
W. A. H. Godley ◽  
J. R. Shepherd
Keyword(s):  
Economic Policy ◽  
Balance Of Payments ◽  
The Other ◽  
High Wage ◽  
Short Term ◽  
High Unemployment ◽  
The Government ◽  
Wage Increases

One of the main aims of short-term economic policy in Britain has been to regulate the pressure of demand for labour, and to keep the fluctuations of the unemployment percentage within fairly narrow limits. High unemployment is obviously undesirable; at the other end of the scale, if the pressure of demand for labour is too strong, this tends to lead to excessively high wage increases and to balance of payments difficulties. It is for the Government to decide at what pressure it wishes to run the economy, and to try to keep it there.

J. Laurence Laughlin versus Irving Fisher on the quantity theory of money, 1894 to 1913

2020 ◽  
Vol 72 (4) ◽  
pp. 1032-1049
Author(s):  
Robert W Dimand
Keyword(s):  
Federal Reserve ◽  
Price Level ◽  
Monetary Theory ◽  
Monetary Reform ◽  
Quantity Theory ◽  
Monetary System ◽  
Long Run ◽  
Economic Association ◽  
The Us ◽  
The University

Abstract In the controversy leading to the Federal Reserve Act of 1913, J. Laurence Laughlin of the University of Chicago and Irving Fisher of Yale were the leading opponent and proponent, respectively, of the quantity theory of money as the theoretical basis for reorganizing the US monetary system. Laughlin identified the quantity theory with bimetallist claims that monetizing silver would have lasting real benefits. Laughlin offered a cost of production theory of the value of gold as an alternative to the quantity theory, while his students published empirical critiques of the quantity theory. Fisher upheld the quantity theory as explaining price movements while distancing the theory from assertions of long-run non-neutrality of money. Laughlin and Fisher vigorously debated monetary theory and monetary reform, notably at American Economic Association meetings. Their confrontations illuminate the monetary controversies preceding the Federal Reserve Act, which reflected the views of Laughlin and Willis (adviser to Congressman Carter Glass) while rejecting the mandate to stabilize the price level proposed by Senator Owen and his adviser Fisher.

Anti-Money Laundering and Combating the Financing of Terrorism - Inclusion in Surveillance and Financial Stability Assessments - Guidance Note

Policy Papers ◽  
2012 ◽  
Vol 2012 (104) ◽  
Author(s):  
Keyword(s):  
Money Laundering ◽  
Financial Stability ◽  
International Monetary System ◽  
Balance Of Payments ◽  
Terrorist Financing ◽  
Monetary System ◽  
Guidance Note ◽  
Effective Operation ◽  
Financing Of Terrorism ◽  
The Stability

This note provides guidance on the inclusion of AML/CFT issues in surveillance and financial stability assessments (FSAs). Specifically, it provides a framework for the treatment of cases where money laundering or terrorist financing (ML/TF) and related underlying crimes (i.e., “predicate crimes” or “predicate offenses”) are so serious as to threaten domestic stability, balance of payments stability, the effective operation of the International Monetary System—IMS— (in the case of Article IV surveillance), or the stability of the domestic financial system (in the case of FSAs).

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