Prospects for Bush summit: Nil Oct 24, 2008
The IMF, which by long-outdated convention is always led by a European, was set up in 1944 to help stabilize through co-operation a system of fixed exchange rates that subsequently broke down in the 1970s. The World Bank, which by equally outdated convention is led by an American, was meant to fund the reconstruction of Europe after the Second World War. (Globe and Mail -- Business)
Bush will meet with G-20 after election Oct 23, 2008
He has likened the effort to the 1944 conference at Bretton Woods, N.H., that built the post-World War II international economic system of (now abandoned) fixed exchange rates and led to the creation of the World Bank and the International Monetary Fund. British Prime Minister Gordon Brown has pushed for creating an international regulation panel to supervise the world's top 30 banks. (Los Angeles Times)
World Leaders Differ on Financial Crisis's Cure as November Summit Planned Oct 23, 2008
Sarkozy, 53, has compared the effort to the 1944 Bretton Woods conference in New Hampshire that fixed exchange rates, hitched the world to the gold standard and created the International Monetary Fund and World Bank. The talks, he said, should aim to impose stricter regulation on financial institutions, curb bonus packages for bankers, overhaul international accounting rules and reshape policies on foreign exchange rates. (Bloomberg -- UK)
Macarthur Coal Reports $46 Million Currency Loss After Dollar Strengthens Oct 22, 2008
The Australian currency has tumbled 31 percent since June, hurting companies like Macarthur Coal that fixed exchange rates on forward sales. Citic Pacific Ltd., building an iron ore mine in Australia, this week predicted HK$15. (Bloomberg -- Australia & New Zealand)
Transcript of a Panel Discussion on the Role and Governance of the IMF: Further Reflections on Reform - The Per Jacobsson Foundation Oct 16, 2008
And subsequently following the breakdown of fixed exchange rates, it played a pivotal role in helping member countries deal with periodic payments difficulties as their economies and financial systems were integrated into the global economy. Recent experience seems to suggest, however, that the traditional balance of payments crises with which we associate Fund assistance, rooted in unsustainable exchange rates, may not be the main issue facing the global economy in the future. (IMF News)
Press Release: African Consultative Group Meeting: Statement by the Vice-Chairman of the African Caucus and the Managing Director of the IMF Oct 11, 2008
"The fiscal response has focused mostly on cushioning the impact of higher food and fuel prices on the population. When possible, fiscal policy can help support price stability, especially in countries where the fiscal stance has contributed to inflation, and in countries with fixed exchange rates where monetary policy options are limited. "The Managing Director reiterated that the IMF stands ready to supplement its policy advice with financial support if exogenous price shocks significantly... (IMF News)
Can Asia Rescue the Global Economy? Oct 7, 2008
Some like Thailand had fixed exchange rates which became overvalued because they were tied to a then-strengthening US dollar, and capital-market liberalization attracted large short-term foreign capital inflow. This hot money built up domestic asset bubbles and generated large current account deficits, which attracted currency speculators. (YaleGlobal Online Magazine, CT)
Gold, manipulation and domination Oct 3, 2008
Thus a gold-smuggling operation between the Portugal colony of Macau and the British territory of Hong Kong flourished until 1974, two years after the United States took the dollar off gold, in effect abolishing the Bretton Woods system of fixed exchange rates, when Hong Kong abolished a law that requires a special license to import gold for re-export. Tiny Macau became one of the world's. (Asia Times Online)
Outrageous salaries and bonuses have rightly been criticised. Oct 3, 2008
The first was the fixed exchange rates, which because of the rapid growth in China and very low market rates in Japan produced a huge financial bubble in the US. The second was the early adaptation to the new global rules on bank capitalisation requirements, known as Basel 2. These rules drastically reduced the capital backing required for residential mortgages. (Sydney Morning Herald -- Business)
Paulson, Bernanke May Find Painful Parallels in 1990s Nordic Bailout, Bust Sep 24, 2008
As policy makers sought to slow inflation and protect their fixed exchange rates, banks found their balance sheets decimated by nonperforming loans amounting to 10 percent of the region's gross domestic product. The response to the subsequent financial crisis was one of ``rapidity and vigor,'' said then-Fed Chairman in a 1999 speech. (Bloomberg)
Analysis: Free-market playbook no longer applies amid turmoil Sep 19, 2008
The origins of those countries' problems were found in capricious global capital flows and a mismatch between excessive borrowing in foreign currency and the countries' maintenance of fixed exchange rates. The current U.S.-centered cataclysm originated in the mortgage market with widespread provision of low-interest-rate loans to people who couldn't afford them and their subsequent sale as securities to institutional investors who barely understood them. (USA Today -- Money)
Paulson Risks Goldman Standard as Fannie, Freddie Share Prospects Diminish Aug 22, 2008
In 2005, while Snow was Treasury secretary, the People's Bank of China, the central bank, abandoned a system of fixed exchange rates and began setting a daily ``reference rate'' for the yuan versus the U.S. currency. The Chinese central bank, which has the largest currency reserves in the world, allows the yuan to fluctuate as much as 0. (Bloomberg)
Transcript of a Conference Call on the 2007 Surveillance Decision With Mark Allen, Director, Policy Development and Review Department and Ross Leckow, Deputy General Counsel, IMF Aug 14, 2008
Of course, I would have to flag that fundamental misalignment, for example, the way it's defined in the decision is not solely something which fixed exchange rates have. It's certainly possible for countries with floating exchange rates to have fundamentally misaligned exchange rates. (IMF News)
New U.S. president will help dollar: Investors Jul 31, 2008
Mr. Nixon closed the so-called gold window on Aug. 15, 1971, effectively ending the dollar's ties to gold prices and the system of fixed exchange rates in place since World War Two. From that point to his resignation on Aug. 8, 1974, the dollar fell 13. (Globe and Mail -- Business)
CE Franklin Ltd. announces 2008 Second Quarter Results Jul 25, 2008
0 million at fixed exchange rates maturing in 2008. The fair market value of the contracts are nominal. (PR Newswire)
The peg precipice Jul 24, 2008
Gulf countries are swimming in oil wealth but drowning in inflation - caused in large part by their own unrestrained consumer demand, and their insistence on hanging on to fixed exchange rates, analysts say. Now, there's a growing fear among the world's opinion leaders that emerging market countries' last-ditch attempts to stifle inflation are akin to sticking a finger in the hole of a leaky dam. (Globe and Mail)
How long can the US keep securing the world's crude? Jul 23, 2008
He is generally credited for the global move from fixed exchange rates to floating exchange rates in 1973. It is a remarkable feat that an economics paper published in 1953 could be that influential 20 years on. (Business Report, South Africa)
Halting speculators is not the way to pacify the oil price Jul 16, 2008
The Bretton Woods system of fixed exchange rates lasted from 1946 to 1973. Thereafter, floating exchange rates became the norm. (Business Report, South Africa)
Economy Slowing in U.S. While Prices Surge Isn't Your Father's Stagflation Jun 20, 2008
A more rigid economy, including a system of fixed exchange rates, couldn't respond to the challenge of a jump in fuel prices. Greater Competition. (Bloomberg)
With joy and some gloating, ECB and euro are feted Jun 3, 2008
The ECB came into existence on June 1, 1998, in preparation for what became the biggest experiment in monetary economics since the world abandoned fixed exchange rates in 1973. Multimedia. (International Herald Tribune -- Business)
Euro, Pound Fall on Speculation Debt-Market Losses Spreading Across Europe Jun 2, 2008
U.S. Treasury Secretary said yesterday Middle East leaders haven't indicated concerns with their fixed exchange rates to the dollar and understand that abandoning the peg would have little impact on rising prices. There's quite an awareness that the dollar peg does not influence inflation to a significant degree,'' Paulson told reporters en route to Abu Dhabi after meeting with Qatari central bank Governor and Prime Minister Sheikh Hamad bin Jasim bin in Doha. (Bloomberg -- Japan)
Stop the Fedbefore it's too late May 31, 2008
During an earlier era of liquidity expansion and monetary policy divergence across countries, central banks found it difficult to defend the Bretton-Woods system of fixed exchange rates and had to resort to flexible exchange rates. Today, they will find the same difficulty if they continue to peg interest rates. (Asia Times Online)
William D. Eberle, 84, trade representative for Nixon Apr 10, 2008
Post-World War II policies geared toward bolstering the economic recovery of Europe and Japan had created growing global competition for American manufacturers, who were also being hurt by fixed exchange rates, which kept the dollar artificially high. Tirelessly but with limited success, Eberle pressed trading partners to give American farmers and businesses more access to overseas markets that had been sheltered by tariffs, bilateral agreements by the Europeans with former colonies and other... (Atlanta Journal-Constitution -- World)
Africa: Hopes Rise for Global Trade Deal [guest column] Apr 10, 2008
But in the 1970s economic crisis these certainties were seriously disrupted as "stagflation" took hold; the U.S. abandoned the fixed exchange rates system; and a group of newly industrialized countries in combination with the resurgence of Japan forever altered the global balance of manufacturing prowess. This gave rise to a first wave of "declinist" hype in the U.S. which suggested that the country was declining economically compared to other market economies and the associated protectionist... (allAfrica.com)
20 comments Apr 4, 2008
I felt that he represents a naive outlook on free international trade without much understanding of the subtleties of import tax or fixed exchange rates. I am much more suspicious of supposed "free trade." It's not free if the country imposes import tax, or currencies are artificially held (like China. (Human Events Online)
What's up withAsian currencies? Mar 28, 2008
Ask any businessperson in Asia, and you will likely hear that they like fixed exchange rates. It's far easier to conduct business not worrying about what your currency may be worth tomorrow. (Asia Times Online)
China shares blame for crisis, Carney says Feb 19, 2008
By insisting on fixed exchange rates, China and other emerging markets over the years have become a major exporter of capital "to such an extent that they have been significant drivers of lower global long-term interest rates," Mr. Carney told a full house of Vancouver business people. More Report on Business Stories. (Globe and Mail)
Commentary: Devaluationist Bunk Feb 12, 2008
That year Richard Nixon abandoned the Bretton Woods system of fixed exchange rates. He closed the gold window, imposed a surcharge on manufactured imports and demanded that other big industrial countries allow their currencies to appreciate against the dollar before he would remove the surcharge. (Forbes)
Transcript of a Joint Seminar by the IMF and the Brookings Institution on "Global Downturn? The World Economy in 2008" Feb 12, 2008
Many countries that have various forms of fixed exchange rates have not moved much or have not moved in the right direction, and this is unfortunate. To be honest, we must not lose sight of the big picture. (IMF News)
Inflation is price as Gulf nations fight to maintain dollar pegs Feb 5, 2008
But markets are still betting that Gulf currencies will be revalued or even that governments may scrap completely their longstanding system of fixed exchange rates. Gulf policy makers have dutifully followed a series of U.S. interest rates cuts, including two totaling 1. (International Herald Tribune -- Business)
Terrorism: FARC's 'Gift' To Hugo Chavez Jan 16, 2008
With the Bretton Woods system of fixed exchange rates tenuous at best, CPI inflation hit 4. 7% by December of 1968, and when President Nixon completely severed the dollar-gold link more than two years later, the inflationary floodgates opened. (Investors Business Daily)
The Anatomy Of Financial Calamities Dec 11, 2007
There were frequent currency crises, but as we have seen, these were mostly situations where macroeconomic policies were inconsistent with the level of the fixed exchange rates set in the Bretton Woods system. Interestingly, the most benign period was the Gold Standard Era from 1880-1913. (Forbes)
Lendman: Multinationals on Trial Dec 2, 2007
It did so going back to when US delegates dominated the Bretton Woods, NH UN Monetary and Financial Conference to establish a postwar international monetary system of convertible currencies, fixed exchange rates, free trade, the US dollar as the world's reserve currency linked to gold, and those of other nations fixed to the dollar. In addition, an institutional framework was designed to establish a market-based capital accumulation process that would ensure (post-war) that newly liberated... (Zmag.org)
Dollar falls to a fresh low against euro Nov 21, 2007
Currencies in Britain, New Zealand, South Africa and Norway gained, partly on speculation that a group of six Arab nations would change their fixed exchange rates from the U.S. currency. "The trend of a weakening dollar will continue," said Adam Boyton, a senior currency strategist in New York at Deutsche Bank, the world's largest currency trading bank. (International Herald Tribune -- Business Asia)
Yen advances versus dollar and euro as traders pare carry trade loans Nov 20, 2007
The dollar's decline versus the yen started after a group of six Arab nations said they would review their fixed exchange rates to the U.S. currency ... The dollar's decline started after the Gulf Cooperation Council, which includes Saudi Arabia, United Arab Emirates and Qatar, said Sunday that members would discuss a proposal next month to change their fixed exchange rates to the dollar. (International Herald Tribune -- Business Asia)
Arabs under pressure to drop US$ peg Nov 20, 2007
DUBAI: When central bankers in the Middle East say they have no plans to end their fixed exchange rates to the US dollar, the currency market hears the opposite ... 2% of the world's oil, according to BP Plc, are under pressure to abandon their fixed exchange rates after the US dollar tumbled 10% against the euro this year. (The Star Online, Malaysia -- Business)
Arabs' Dollar Losses Increase Pressure to Sever American Currency Linkage Nov 19, 2007
Nov. 19 (Bloomberg) -- When central bankers in the Middle East say they have no plans to end their fixed exchange rates to the dollar, the currency market hears the opposite ... 2 percent of the world's oil, according to BP Plc, are under pressure to abandon their fixed exchange rates after the dollar tumbled 10 percent against the euro in 2007. (Bloomberg -- Europe)
Australian, New Zealand Dollars Give Up Gains After Stocks in Asia Decline Nov 19, 2007
The currencies still gained against the U.S. dollar on speculation six Gulf Arab states will consider changing their fixed exchange rates to the dollar. The Aussie and kiwi have been tracking stocks,'' said David Forrester, Australian and New Zealand currency economist at Barclays Capital in Singapore. (Bloomberg -- Australia & New Zealand)
Dollar Falls Against Yen as Gulf States Will Discuss Currency Revaluation Nov 19, 2007
Nov. 19 (Bloomberg) -- The dollar fell against the yen after a group of six Arab nations said they will consider changing their fixed exchange rates to the U.S. currency. The six member countries of the Gulf Cooperation Council that includes Saudi Arabia and the United Arab Emirates will discuss a proposal next month to revalue their currencies, Secretary General Abdul Rahman al-Attiyah said yesterday. (Bloomberg -- Japan)
Bank of Canada will respond to global turbulence: Dodge Nov 18, 2007
Mr. Flaherty said he emphasized Canada's concern about the rapid rise of the Canadian dollar and the fact that other countries, notably China, are not participating in the international adjustment because they have fixed exchange rates. I underscored our concern that Canada has been disproportionately affected by the impact of global imbalances on international currency markets, he said. (Globe and Mail -- Business)
Dollar woes? Nov 17, 2007
It is frivolous to suggest that Canada adopt fixed exchange rates solely to prevent the loss of 4 cents on each dollar that we convert for cross-border shopping. There are compelling macroeconomic reasons. (Globe and Mail -- Business)
Two dollar poundWhat was life like the last time the pound was so strong? Nov 15, 2007
The next challenge came in the early 1970s when the Bretton Woods world of fixed exchange rates became unsustainable and, in 1972, the pound was floated. People rushed to sell their jewellery and other valuables. (BBC News -- UK)
A Reliable Dollar, Not A Strong One Nov 14, 2007
When currencies around the world fell in response to Nixons move, a system of fixed exchange rates was quickly put together. Unfortunately, the dollars new position wasnt taken seriously by the markets, resulting in a substantial flight away from dollars and into the more credible currencies offered by Japan and Germany. (CBS News)
Dollar Strengthens to a Record as Job Growth Bolsters Rate Expectations Nov 3, 2007
That era ended in 1962 when the country experienced fixed exchange rates until 1970. The economy created 63,000 jobs in October and the employment rate dropped to 5. (Bloomberg -- Canada)
Canada's Dollar Reaches All-Time High on Record Crude Oil, Fed's Rate Cut Nov 1, 2007
That era ended in 1962 when the country experienced fixed exchange rates until 1970. Crude oil rose to a record $95. (Bloomberg -- Canada)
Time to close the IMF Oct 24, 2007
At one time, financial system and private capital flows operated within fixed exchange rates and capital controls with most financial transactions occurring between governments ... Since countries with fixed exchange rates tend to encounter problems with foreign exchange liquidity, the IMF provided bridging loans so trade could continue unabated. (Jakarta Post, Indonesia -- Editorial)
* IMF faces crisis of identity and unclear future Oct 2, 2007
Beyond these difficulties is the question of whether an institution established in the 1940s, an era of fixed exchange rates and capital controls, has a role to play in an era when trillions of dollars flow across borders every day. With its US$300 billion in reserves and credit lines, it hardly has the resources to cope with a major crisis. (Taipei Times, Taiwan -- World)
Read Article » Sep 28, 2007
IMF looks to salvage its global relevance Does the International Monetary Fund, established in the 1940s during an era of fixed exchange rates and capital controls, have a role to play in an era when trillions of dollars flow across borders every day. " /> Dominique Strauss-Kahn, a former French finance minister who becomes the new managing director of the I.M.F. today, says the group's two main issues are relevance and legitimacy. (David Lillo/Agence France-Presse - Getty Images) IMF looks to... (International Herald Tribune)
IMF loses saviour role in era of prosperity Sep 28, 2007
Beyond these difficulties is the question of whether an institution established in the 1940s, an era of fixed exchange rates and capital controls, has a role to play in an era when trillions of dollars flow across borders every day. With its $US300 billion ($340 billion) in reserves and credit lines, the IMF hardly has the resources to cope with a major crisis. (Sydney Morning Herald -- Business)
The U.S. economy Sep 22, 2007
The dollar hasn't been this low on a trade-weighted basis since the major industrialized countries abandoned the Bretton Woods regime of fixed exchange rates in 1973, said Tu Packard, an economist at Moody's Economy. com in West Chester, Pa. (Globe and Mail -- Business)
China set to become financial power Sep 8, 2007
Mr Macfarlane sent a pointed message to China, saying Asia was divided into groups of economies: those with fixed exchange rates and large surpluses and those with neither. It was impossible for every economy to fall into the first category, he said. (Sydney Morning Herald -- Australia)
China May Not Be Shielded From Subprime Decline Aug 20, 2007
The second generation involved countries trying to defend unsustainably overvalued fixed exchange rates, such as the European monetary system and Mexico in the 1990s; the third generation, featuring a combination of a weak financial sector and a currency crisis, devastated most Asian economies in 1997. The spillover of a liquidity crisis from a major industrialized country to the emerging markets would be an entirely new phenomenon, the bank said. (Forbes -- Markets)
The Asian Crisis -- Why was it so much worse here? Jul 23, 2007
While there remains much lively argument over the relative weights that should be assigned to various factors identified as causes of the crisis, many agree the most important factors were loose credit conditions and fixed exchange rates that encouraged risky short term foreign currency borrowing to fund long term domestic fixed asset acquisition. But this applied to all of the crisis-hit countries to greater or lesser degrees. (Jakarta Post, Indonesia -- Editorial)
Has enough been done to stop another Asian crisis? Jul 21, 2007
But all the countries had essentially fixed exchange rates, so no one worried about that and no one sought to hedge their risk. Foreigners started pulling their money out of Thailand in late 1996. (The Age, Australia -- Business)
The Global Outlook and the Evolving Role of the Fund: Speech by John Lipsky, First Deputy Managing Director, International Monetary Fund Jul 20, 2007
While Fund members originally were required to maintain fixed exchange rates, this evolved during the 1970s into an open system in which each member is free to choose their preferred exchange system either fixed, floating or pegged rates. However, the guiding "legislation" (formally, the relevant Executive Board Decision) that governed staff assessments of members' policies predated the 1978 amendment to the Articles that granted members the freedom to choose their preferred exchange rate... (IMF News)
Sandvik: Interim Report on the Second Quarter and the First Six Months of 2007 Jul 19, 2007
Percentage change compared to the same quarter in the preceding year at fixed exchange rates for comparable units. A combined presentation and teleconference will be held on 19 July at 2. (BusinessWire)
Arrogant Germany and fearful France tearing euro apart Jul 16, 2007
Article 111 of the Nice Treaty states that the Council (politicians) may set fixed exchange rates (by unanimous vote), and formulate "general orientations" (by majority vote). In other words, they may compel the ECB to change course on interest rates. (Telegraph.co.uk)
Repeating the mistakes of the Asian crisis Jul 10, 2007
These countries are also accused of having failed to understand the dangers of inappropriate or fixed exchange rates. Currencies that were too strong before 1997 are now said to be too weak, leading to an explosion of liquidity. (International Herald Tribune -- Ed/Op)
PART 2: How devaluation destroys wealth Jun 19, 2007
Further, in Wicksell's time (he died in 1926 at the age of 74), there were no exchange-rate issues as there was no foreign-exchange market, since the reserve currency was based on the gold standard, with other currencies adopting fixed exchange rates against it. Cross-border movement of funds was strictly regulated, and currency accounts between trading nations were settled in gold regularly through adjustment of national accounts in the Bank of International Settlement. (Asia Times Online)
No Firm Climate Targets From G8, US Says Jun 7, 2007
The world's top industrial powers first gathered in 1975 in Rambouillet, France, to coordinate economic policy following a global oil crisis and the collapse of the Bretton Woods system of fixed exchange rates. Recently, the club has come under pressure to adapt to shifts in global economic power. (Planet Ark, United States)
Leaders gather for start of G-8 summit Jun 6, 2007
African leaders invited to 'outreach' sessionThe worlds top industrial powers first gathered in 1975 in Rambouillet, France, to coordinate economic policy following a global oil crisis and the collapse of the Bretton Woods system of fixed exchange rates. Recently, the club has come under pressure to adapt to shifts in the global economic balance. (Huntington WSAZ-TV, WV)
Chaos, rubbish and revolution Jun 6, 2007
This was still the old post-1945 world of fixed exchange rates which meant that the Heath government, just like those of Clement Attlee and Harold Wilson, faced a sterling crisis and perhaps yet another devaluation. Britain not only had heavy levels of unionisation through all the key industries but also, by modern standards, an incredible number of different unions - more than 600 altogether. (BBC News -- UK)
G-8s focus may default to African aid Jun 4, 2007
Informal meetings of the top industrial powers date back to 1975, when the G-6 (Canada joined in 1976 and Russia in 1998) gathered in Rambouillet, France, to co-ordinate economic policy following a global oil crisis and the collapse of the Bretton Woods system of fixed exchange rates. Sponsored links. (Business Day)
Cracks on Climate as G8 Leaders Meet in Germany Jun 4, 2007
Informal meetings of the world's top industrial powers date back to 1975, when the G6 (Canada joined in 1976 and Russia in 1998) gathered in Rambouillet, France to coordinate economic policy following a global oil crisis and the collapse of the Bretton Woods system of fixed exchange rates. Now the club, which accounts for nearly two-thirds of the world's growth but only about one-eighth of its population, faces accusations of irrelevance and is under pressure to adapt to a shift in the global... (Planet Ark, United States)
Weisbrot: Bank After Wolfowitz May 31, 2007
The breakdown of the IMF/World Bank creditors' cartel has been the most important change in the international financial system since the collapse of the Bretton Woods system of fixed exchange rates in 1973. It is in this context that the battle for reform at the World Bank is most meaningful. (Zmag.org)
