The international monetary system underwent since the late 1990’s a deep change. Many developing countries (among others China), tied their exchange rate, formally or informally, to the dollar in a sort of new Bretton Woods system either to avoid risks of sudden stops or for mercantilist reasons. To do so they accumulated a huge amount of international reserves (specially dollars) which allow them to strongly manage the exchange rate. Fixed rates systems are considered instable in a world of open capital markets owing to the loss of independent monetary policy. The implication is that Bretton Woods 2 (as it is called) should unravel quite soon. Contrary to this pessimistic view we present a series of reasons suggesting that Bretton Woods 2 is a sustainable system and will remain so if central banks follow a multilateral and cooperative approach.

Mercato dei cambi e riserve valutarie

ROSSINI, GIANPAOLO;SALITURO, BRUNO
2007

Abstract

The international monetary system underwent since the late 1990’s a deep change. Many developing countries (among others China), tied their exchange rate, formally or informally, to the dollar in a sort of new Bretton Woods system either to avoid risks of sudden stops or for mercantilist reasons. To do so they accumulated a huge amount of international reserves (specially dollars) which allow them to strongly manage the exchange rate. Fixed rates systems are considered instable in a world of open capital markets owing to the loss of independent monetary policy. The implication is that Bretton Woods 2 (as it is called) should unravel quite soon. Contrary to this pessimistic view we present a series of reasons suggesting that Bretton Woods 2 is a sustainable system and will remain so if central banks follow a multilateral and cooperative approach.
G.Rossini; B. Salituro
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11585/49127
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