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.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.