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 / G.Rossini; B. Salituro. - In: IL MULINO. - ISSN 0027-3120. - STAMPA. - 430, n. 2 (marzo-aprile):(2007), pp. 331-339.

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.
2007
Mercato dei cambi e riserve valutarie / G.Rossini; B. Salituro. - In: IL MULINO. - ISSN 0027-3120. - STAMPA. - 430, n. 2 (marzo-aprile):(2007), pp. 331-339.
G.Rossini; B. Salituro
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/49127
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