scholarly journals The Revived Bretton Woods System: The Effects of Periphery Intervention and Reserve Management on Interest Rates & Exchange Rates in Center Countries

2004 ◽  
Author(s):  
Michael Dooley ◽  
David Folkerts-Landau ◽  
Peter Garber
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Bretton Woods ◽  
Reserve Management

Commodities, Futures, Options, and Swaps, 1970–92

2020 ◽  
pp. 57-79
Author(s):  
Ranald C. Michie
Keyword(s):  
Central Bank ◽  
Financial Markets ◽  
Exchange Rates ◽  
Interest Rates ◽  
Futures Contracts ◽  
Central Bank Intervention ◽  
Over The Counter ◽  
Bretton Woods ◽  
Futures Options ◽  
The Past

One of the most dynamic financial markets to appear after 1970 was the trading of derivatives. Prior to 1970 the fixed nature of both interest rates and exchange rates, because of government controls and central bank intervention, limited the need to cover risks in these areas. With the breakdown of the Bretton Woods system in the early 1970s both interest rates and exchange rates experienced rising volatility, forcing banks to turn to derivatives as one way to coping. Governments of countries also began relaxing the prohibition on the trading of futures contracts that had been introduced in the past as a way of coping with destabilizing speculation. The commodity exchanges responded to these opportunities by devising contracts that allowed users to cover risks in financial markets as had already been done for such products as wheat, copper, and, later, oil. Leading these developments were the Chicago commodity exchanges such as the Chicago Mercantile Exchange but numerous contracts were also traded in the Over-the-Counter (OTC) market, directly between banks or through interdealer brokers.

Conclusions

2018 ◽  
Author(s):  
Stephany Griffith-Jones ◽  
José Antonio Ocampo ◽  
Paola Arias
Keyword(s):  
Developing Countries ◽  
Renewable Energy ◽  
Exchange Rates ◽  
Interest Rates ◽  
Development Strategy ◽  
National Development ◽  
Financial Inclusion ◽  
Production Sector ◽  
New Instruments ◽  
Innovation And Entrepreneurship

Based on the seven case studies analysed in this volume, this chapter concludes that national development banks (NDBs) have been successful in many cases in supporting innovation and entrepreneurship, key new sectors like renewable energy, and financial inclusion. They have developed new instruments, such as far greater use of guarantees, equity (including venture capital) and debt funds, and new instruments for financial inclusion. The context in which they operate is key to their success. Active countercyclical policies, low inflation, fairly low real interest rates, a well-functioning financial sector, and competitive exchange rates are crucial. They are also more effective if the country has a clear development strategy, linked to production sector strategies that foster innovative sectors. Under these conditions, the chapter argues that there is great need for a larger scale of NDB activity in Latin America and in developing countries in general.

“Interest rates, exchange rates, and aggregate supply”: A comment

1990 ◽  
Vol 12 (3) ◽  
pp. 501-510 ◽  
Author(s):  
Wen-Ya Chang ◽  
Ching-Chong Lai ◽  
Yun-Peng Chu
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Aggregate Supply

scholarly journals An Interpretation of Recent Research on Exchange Rate Target Zones

1992 ◽  
Vol 6 (4) ◽  
pp. 119-144 ◽  
Author(s):  
Lars E. O Svensson
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
Exchange Rates ◽  
Interest Rates ◽  
Empirical Research ◽  
Target Zones ◽  
The Difference ◽  
Exchange Rate Target Zones ◽  
Main Ideas ◽  
Central Bank Interventions

How do exchange rate bands work compared to completely fixed rates (between realignments); or, more precisely, what are the dynamics of exchange rates, interest rates, and central bank interventions within exchange rate bands? Does the difference between bands and completely fixed exchange rates matter, and if so, which of the two arrangements is best; or, more precisely, what are the tradeoffs that determine the optimal bandwidth? This article will present an interpretation of some selected recent theoretical and empirical research on exchange rate target zones, with emphasis on main ideas and results and without technical detail.

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