Comments: The Case for Benign Neglect
Author: Horst Siebert
Language:
English
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
Editor: Mr. Alexander K. Swoboda and Mr. Peter B. Kenen
ISBN:
9781557758354
Publication Date:
18 Dec 2000
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557758354.071
Pages:
448