- Paul Masson, Morris Goldstein, and Jacob Frenkel
- Published Date:
- June 1991
© 1991 International Monetary Fund
Library of Congress Cataloging-in-Publication Data
Frenkel, Jacob A.
Characteristics of a successful exchange rate system / by Jacob A. Frenkel, Morris Goldstein, and Paul R. Masson.
p. cm. — (Occasional paper / International Monetary Fund,
ISSN 0251-6365; 82)
Includes bibliographical references.
1. Foreign exchange problem. 2. Monetary policy. I. Goldstein, Morris, 1944-. II. Masson, Paul R., 1946-. III. Title. IV. Series: Occasional paper (International Monetary Fund): no. 82. HG3851.F69 1991
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- I. Introduction
- II. Nominal Anchors
- III. Facilitating International Adjustment
- IV. Diversity in Exchange Arrangements
- V. Exchange Market Stability as a Public Good
- VI. Rationale for Policy Coordination
- VII. Role of the Fund
- I. Economic Policy Coordination in Context of Uncertainty
- II. Evaluation of Some Simple Coordinated Policy Rules
- 2. Austria and Switzerland: Bilateral Exchange Rates and Short-Term Interest Rate Differentials Relative to Germany
- 3. Share of Intra-EC Trade as a Percentage of Total Trade, 1960–89
- 4. Original ERM Countries: Bilateral Exchange Rates Against the Deutsche Mark
- 5. Daily Percentage Changes in the U.S. Dollar Exchange Rates, January 1988–February 1991
The following symbols have been used throughout this paper:
- … to indicate that data are not available;
- — to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
- – between years or months (e.g., 1990–91 or January-June) to indicate the years or months covered, including the beginning and ending years or months;
- / between years (e.g., 1990/91) to indicate a crop or fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.
This study, which was prepared in the Research Department of the International Monetary Fund, addresses a number of issues that relate to the operation of the international monetary system. It extends the analysis in several earlier studies by the authors (see the list of references). The study is designed to be accessible to the nonspecialist; however, some technical issues are treated in the appendices.
The authors are Jacob A. Frenkel, Economic Counselor and Director of Research; Morris Goldstein, Deputy Director of the Research Department; and Paul R. Masson, Advisor. They are especially grateful to Claire Adams for research assistance, to the editor Elin Knotter of the External Relations Department, and to Andrea Chisholm for her efficient word processing. Numerous colleagues provided comments and advice. The authors alone are responsible for the study; the opinions expressed are theirs and do not necessarily reflect the views of the IMF.