Comments: The Case for Benign Neglect
Author:
Horst Siebert
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Language:
English
Print Publication Date:
18 Dec 2000
Keywords:
BOOK; crisis; financing; exchange rate; market; financial system; IMF policy advice; IMF Policy recommendation; IMF reform; emerging market crisis; emerging market country; Exchange rates; Emerging and frontier financial markets; Capital flows; Currencies; Global; Asia and Pacific; East Asia; Europe; Southeast Asia; exchange rate movement; equilibrium exchange rate; exchange-rate-oriented monetary policy; exchange rate expectation; dollar money supply; Exchange rate stability; Real exchange rates; Nominal effective exchange rate

Abstract

Cœuré and Pisani-Ferry’s paper could be retitled, “In search of common international economic policy principles.” Their plea is not for an explicit commitment to coordination, which is, according to them, “too demanding.” They are looking for a softer approach to coordination. I question whether constant exchange rates can be established in this way. I begin by asking what would have to be done if we want stable exchange rates. Next, I show that the necessary conditions will not be achieved. Thus, my argument is a contrario.

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Cover Reforming the International Monetary and Financial System
Reforming the International Monetary and Financial System
ISBN:
9781557758354
Publication Date:
18 Dec 2000
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557758354.071
Pages:
448
Front Matter
Part I. Key Issues of Reform
Part II. Maintaining Stability Under High Capital Mobility
3 The Euro, Yen, and Dollar: Making the Case Against Benign Neglect
Comments: Let Exchange Rates Float
Comments: Foreign Exchange Origins of Japan’s Liquidity Trap
4 Moderating Fluctuations in Capital Flows to Emerging Market Economies
Comments: Lessons from the Czech Experience
Comments: Emerging Market Crises: Origins and Remedies
Comments: Who Is to Blame for the Crises?
Comments: Policy Options for Capital Importers
5 When Capital Inflows Suddenly Stop: Consequences and Policy Options
comments: The Balance Between Adjustment and Financing
Comments: The Balance Between Structural and Macroeconomic Adjustment
Comments: Can the Right Balance Be Achieved?
Comments: On Dysfunctional Adjustment and Financing
6 Is Greater Private Sector Burden Sharing Impossible?
Comments: Private Sector Participation in Crisis Prevention and Resolution
Comments: On Debt Management and Collective-Action Clauses
Comments: More Private Sector Involvement and Less Official Financing
Comments: Private Sector Burden Sharing
Part III. The Role of the International Monetary Fund
Part IV. Conclusion
Back Matter