Macroeconomic Policy in Cuba

2014 ◽  
pp. 326-338
Author(s):  
Ernesto Hernández-Catá
Keyword(s):  
Resource Allocation ◽  
Central Bank ◽  
Substantial Part ◽  
Fiscal Deficit ◽  
Lender Of Last Resort ◽  
Macroeconomic Policies ◽  
Rate System ◽  
Multiple Exchange ◽  
Exchange Rate System ◽  
Harmful Effects

This chapter examines the evolution of macroeconomic policies in Cuba during the past 25 years. It analyzes the changes in fiscal policy from its wild gyrations in the early 1990s to the period of stability from 1994 to 2004, and to the crisis of 2008 and its sequel. It then examines the strategy of the Central Bank of Cuba and the tension between its anti-inflationary objective and its obligation to finance a substantial part of the fiscal deficit. It also emphasizes the need for new, modern instruments of monetary control, and the need to equip the central bank to become a lender of last resort. Finally, the chapter discusses the current multiple exchange rate system, its discriminatory nature, and its harmful effects on resource allocation, equity, and the interpretation of statistics.

Article 219 TFEU

2019 ◽  
Author(s):  
Friedrich Erlbacher
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
European Central Bank ◽  
European Parliament ◽  
Price Stability ◽  
Rate System ◽  
European Central ◽  
Exchange Rate System

Article 111(1) to (3) and (5) EC By way of derogation from Article 218, the Council, either on a recommendation from the European Central Bank or on a recommendation from the Commission and after consulting the European Central Bank, in an endeavour to reach a consensus consistent with the objective of price stability, may conclude formal agreements on an exchange-rate system for the euro in relation to the currencies of third States. The Council shall act unanimously after consulting the European Parliament and in accordance with the procedure provided for in paragraph 3.

Global Monetary Cooperation and the Exchange Rate System

2017 ◽  
Author(s):  
José Antonio Ocampo
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Policy ◽  
Critical Area ◽  
Macroeconomic Policies ◽  
Rate System ◽  
Monetary Cooperation ◽  
System P ◽  
Rate Policy ◽  
Exchange Rate System ◽  
Basic Objective

This chapter looks at historical and current frameworks to manage macroeconomic linkages among economies. The basic objective of cooperation in this area is to guarantee the consistency of the macroeconomic policies of major economies, to avoid both unsustainable global booms and crises. This requires an adequate supply of liquidity at the international level, the topic analysed in Chapter 2, as well sustainable payments balances and an adequate exchange rate system, two areas of cooperation analysed here. The chapter looks first at the evolving nature of global imbalances. It then analyses the mechanisms that have been put in place at different times to manage macroeconomic linkages among major economies, before finally considering the current exchange rate ‘non-system’. The chapter claims that exchange rate policy is perhaps the most critical area for which macroeconomic policy cooperation should be strengthened, particularly by moving to a system of reference rates among major currencies.

TAIWAN'S EXCHANGE RATE AND MACROECONOMIC POLICIES OVER THE BUSINESS CYCLE

2010 ◽  
Vol 55 (03) ◽  
pp. 435-457 ◽  
Author(s):  
SHIU-SHENG CHEN ◽  
TSONG-MIN WU
Keyword(s):  
Exchange Rate ◽  
Business Cycle ◽  
Macroeconomic Policies ◽  
Rate System ◽  
Monetary Policies ◽  
Exchange Rate System ◽  
Economic Slowdown ◽  
The Business Cycle ◽  
Foreign Shocks ◽  
Business Cycle Dynamics

This paper investigates exchange rate and monetary policies over the business cycle in Taiwan. We first characterize the business cycle dynamics in Taiwan and identify foreign shocks as the main cause of any fluctuations. We then briefly review the exchange rate system and policy operating in Taiwan since the early 1980s. Finally, we investigate the current recession, and discuss how the Taiwanese government is dealing with the economic slowdown.

Managed Floating Exchange Rates, Intervention Policy and Macroeconomic Policies

1985 ◽  
Vol 12 (4) ◽  
pp. 52-57
Author(s):  
Ching‐Chong Lai ◽  
Wen‐tzong Hsiao ◽  
Wen‐ya Chang
Keyword(s):  
Exchange Rates ◽  
Foreign Exchange Market ◽  
Flexible Exchange Rate ◽  
Macroeconomic Policies ◽  
Rate System ◽  
Systematic Analysis ◽  
Exchange Rate System ◽  
Managed Floating ◽  
Intervention Policy ◽  
Floating Exchange Rates

Traditionally, international monetary economists focus their attention on the framework of either a pure fixed or a pure flexible exchange rate system. With the demise of the Bretton Woods system, many countries have begun to use an intervention policy in the foreign exchange market and adopted the regime of managed floating exchange rates. Such a change has encouraged many economists into the field of this system. Although the contributions in this area are very rich, there is no systematic analysis concerning whether intervention policy will enhance or weaken the effectiveness of macroeconomic policies. That is why this article is written.

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