Pound's fall may herald recovery not doom Nov 17, 2008
I see these arguments as fallacious - and, much more importantly, so do the Government and present members of the MPC. There are many objections to the Buiter argument, but the main one is simply that in the modern world of paper money and floating exchange rates, there is no such thing as a reserve currency - only different currencies that are traded and used as stores of value in the same way as other as assets. Investors cannot sell one currency, such as sterling, without buying another, be... (Times Online)
Q&A: The G20 summit Nov 15, 2008
But there is little appetite to abandon the world of floating exchange rates, while free trade talks, also encouraged at Bretton Woods, have stalled. The meeting might also seek to redesign those Bretton Woods institutions - but it is unclear what role the new institutions would undertake. (BBC News -- Business)
* Bretton Woods II: a chance to remake the global financial system Nov 14, 2008
Floating exchange rates were volatile, but instruments such as markets in future exchange rates emerged to manage new risks ... He should propose the end of floating exchange rates and argue for a system of managed exchange rates between the euro, dollar and yen to bring back more predictability into the system. (Taipei Times, Taiwan -- Business)
Dollars dizzying ride Nov 7, 2008
The US currency is down 4 per cent from its highs on a trade-weighted basis, having posted its largest monthly rise in 40 years of floating exchange rates last month. EDITORS CHOICE. (FT.com -- Markets)
Crisis summit a chancefor genuine reform Nov 4, 2008
In 1973, the world embraced the collapsed international payments system that had evolved - a hodgepodge, principally with most countries adopting floating exchange rates (with government intervention) and no discipline in macroeconomic policies; and ironically no discipline whatsoever on the part of the major economies, economies that had the major impact on other countries (US, Europe and Japan) as they had no need of IMF financing. The system of exchange rates and macroeconomic discipline... (Asia Times Online)
Loonie extends rally, but trims gains Oct 31, 2008
67 cents against the U.S. dollar Wednesday was the largest one-day gain in the era of floating exchange rates. Mr. Malyon said policy-maker activism has helped to sustain the optimism that was renewed earlier this week. (Globe and Mail -- Business)
China stays quiet amid talk of new financial order Oct 27, 2008
But Beijing shows scant interest in debating whether a wholly new monetary regime is called for -- whether, perhaps, the current crisis has its roots in the floating exchange rates that replaced the Bretton Woods system of fixed-but-adjustable rates, centred on the dollar, backed by gold and supervised by the International Monetary Fund, that collapsed in 1971. "I don't think China can do much. Officials have said that what is important for China is to handle its own business well, which I think... (Reuters UK)
Trichet Says Credit Crisis Calls for Return to Bretton Woods 'Discipline' Oct 15, 2008
That was triggered in 1971, when inflation forced the U.S. to abandon the dollar's peg to gold, an anchor of the system, heralding the era of floating exchange rates. The explosion of the first Bretton Woods in a way could be interpreted as a rejection of discipline,'' said Trichet. (Bloomberg -- Europe)
Trends In Economics: A Calculus of Risk Sep 16, 2008
The engineering of financial instruments has emerged in response to turbulence during recent decades in ever more interconnected world markets: a result of floating exchange rates, oil crises, interest- rate shocks and stock-market collapses. The creative unleashing of new products continues with increasingly sophisticated forms of securities and derivatives options, futures and other contracts derived from an underlying asset, financial index, interest or currency exchange rate. (Scientific American)
Volatile month for almost all currencies Sep 9, 2008
He has said, however, floating exchange rates are inherently unstable due to diverse factors that can cause changes to that demand. Most Viewed. (The Star Online, Malaysia -- Business)
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
It's certainly possible for countries with floating exchange rates to have fundamentally misaligned exchange rates. So, yes, there can be a certain amount of stigma here, but I think we have tried to get a procedure that allows more discussion of these things, a more constructive discussion, too. (IMF News)
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
Thereafter, floating exchange rates became the norm. During the 1950s and the 1960s, many believed that floating exchange rates would succumb to speculation, as in the 1920s ... Consequently, the prevailing view was that floating exchange rates would lead to the destabilisation of economies. (Business Report, South Africa)
Failed expectationsin US trade policy Jun 6, 2008
Europe, Canada, and other countries with freely floating exchange rates face comparable trends in their trade relationship with China. Similar arguments can be made for our "free-trade" agreements (FTAs). (Asia Times Online)
The rising protectionist tide Apr 23, 2008
In a world of freely floating exchange rates, without a gold standard or equivalent, there is a substantial economic case for moderate tariffs, which preserve each country or trading blocs home market as a protected area, preventing temporary fluctuations in exchange rates from driving almost-competitive local producers out of business. If the euro/dollar exchange rate can move in six years from $0. (Asia Times Online)
Dollar Rises Against Euro as Spending Beats Previous Estimate Mar 30, 2008
The U.S. and Japan both recognize the value of maintaining floating exchange rates'' in promoting economic stability and good trade relations, , the Treasury's undersecretary for international affairs, said in the text of a speech to the Japan Society, in New York. China has let the yuan rise by 3. (Yahoo News -- Global Economy)
Transcript of a Joint Seminar by the IMF and the Brookings Institution on "Global Downturn? The World Economy in 2008" Feb 12, 2008
At the same time it looks like the burden of adjustment and the burden of movement of exchange rates has fallen disproportionately on countries with floating exchange rates some of which of course are industrial countries, some of which are emerging markets but with floating exchange rates. 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. (IMF News)
Devaluation 1967Programmes to mark the 40th anniversary of devaluation Nov 17, 2007
In today's world of floating exchange rates, where currency values fluctuate daily, the religious adherence to an artificially-fixed price seems incredible. War. (BBC News -- Business)
Parity is where the loonie should be Nov 14, 2007
The U.S.-based Bespoke Investment Group has analyzed the ups and downs of the U.S. dollar since 1973 (when the developed economies adopted floating exchange rates) and has found the present decline largely unexceptional. Bespoke identifies four U.S.-dollar bull markets, five bear markets, and uses the U.S. Dollar Index to track the changing value of the currency. (Globe and Mail -- Business)
Dollar Sinks to New Low Against Euro... Nov 10, 2007
1039, its highest level in the post-1950 era of Canadian floating exchange rates. The "loonie" has taken flight as prices of Canada's major exports, including oil and gold, have surged. (The Drudge Report)
Greenback on the brink Nov 8, 2007
Namely, since many Asian and Middle Eastern countries the ones with the big current account surpluses have refused to let their currencies float freely, the economies with flexible floating exchange rates are having to absorb the global adjustment ... Canada, in particular, has had to suck up much of the U.S. dollar depreciation, mainly because other major commodity exporters don't have floating exchange rates, says Don Drummond, chief economist at Toronto-Dominion Bank. (Globe and Mail)
RBI managing 'impossible trinity' well Nov 7, 2007
Economic theory says a country can only attain two of the three objectives of price stability, floating exchange rates and capital mobility. "Impossible trinity" refers to a situation in which it tries to achieve all three aims simultaneously. (India Times)
Time to close the IMF Oct 24, 2007
But floating exchange rates and open capital markets with greater macroeconomic stability from globalized capital markets and institutional competition undermined its raison d'etre. In response, highly-paid bureaucrats engaged in "mission creep" and expanded the role of the IMF beyond its original brief. (Jakarta Post, Indonesia -- Editorial)
Dollar hits 33-year low vs. Canadian loonie, recovers from latest record low against euro Oct 20, 2007
04 Canadian cents, hit on May 24, 1974, since the era of modern floating exchange rates. If we break below 96 cents, which I think is increasingly likely, we're really into a new trading range, said Michael Woolfolk, senior currency strategist at the Bank of New York. (San Diego Union-Tribune -- Business)
Transcript of IMF Seminar -- The Risk of a U.S. Hard Landing and Implications for the Global Economy and Financial Markets Sep 21, 2007
Now there are small budget deficits, fiscal surpluses, they have independent central banks, low inflation, they moved to floating exchange rates sort of, current account surpluses rather than deficits, therefore less risk of a sudden stop, this war chest of reserves of $5 trillion, cleaning up banks, corporations and the financial systems, fewer balance sheet vulnerabilities in terms of currency maturity and capital structural mismatches, you have to give them credit, they have done all the... (IMF News)
Trichet, Lagarde Urge China, Japan to Allow Their Currencies to Strengthen Sep 15, 2007
Trichet singled out China in saying it is ``desirable'' that Asian nations without floating exchange rates allow more movement in their currencies. The concern among European officials is that, with the dollar at a record low against the euro, European exports stand to suffer if Asian currencies such as the Chinese yuan and Japanese yen don't gain more. (Bloomberg -- Japan)
IMF chief in shock resignation Jun 29, 2007
Established as part of the Bretton Woods postwar infrastructure, in recent years the fund has found itself without a role in an era of floating exchange rates. The IMF remains bruised by the spectacular failures of its policies in Argentina in 2001, although more recent policy interventions in Turkey and Brazil have been successful. (Guardian Unlimited -- World)
Why buy when pros are selling? May 27, 2007
Inflation targeting and floating exchange rates have become the central bank management style almost everywhere (China is, of course, the odd economy out, and an important one), and there has not been a major regional financial crisis for a decade. China has also been aggressively exporting deflation as it manufactures and sells low-priced goods worldwide, and that has been a major counterweight to rising commodity prices and inflation. (Sydney Morning Herald -- Business)
A dialogue of the mute May 23, 2007
Bilateral issues will continue to receive full attention from the US, including pressing China for floating exchange rates, greater protection of intellectual-property rights, and increasing access to Chinese markets, all short-term symptoms of structurally flawed terms of trade set by the US, blamed on a demonized China by deep-rooted bias, notwithstanding the stated intent of the SED "to discuss long-term strategic challenges, rather than seeking immediate solutions to the issues of the day".... (Asia Times Online)
Learning from Experience: Debt Defaults and Lessons from a Decade of Crises, Remarks by John Lipsky, First Deputy Managing Director, IMF May 11, 2007
But, unlike the Bretton Woods arrangement, this was a world of floating exchange rates, at least among the major industrialized nations, and relatively open capital markets. It wasn't long before this new world went through a severe series of tests, starting with the Mexican crisis in 1994 and then, from 1997 onwards, the Asian crisis, the Russian default, Argentina-and so on. (IMF News)
Transcript of an IMF Economic Forum: New Perspectives on Financial Globalization May 5, 2007
So I put that as issues to think about, and I think issues that explain why countries when push comes to shove they move out of interest rate targeting or floating exchange rates and they run it back and I think that is what is behind the accumulation of reserves. The issue is that we as analysts are not given a lot of guidance to the central bankers and central bankers want to say that they float, but they follow these advanced countries type monetary policy and they are very happy while they... (IMF News)
A growing sense that it's too good to last Apr 30, 2007
Now, most currencies have floating exchange rates, although they are considered "dirty" floats since their levels are heavily managed by intervening central banks. But the U.S. dollar is generally thought to be too strong, the yen far too weak, and the Chinese yuan downright out of whack. (Globe and Mail -- Business)
Paulson Urges IMF on Exchange Rates Apr 15, 2007
Those rules, he said, "must be updated to reflect the dramatic rise of capital flows and the wider use of market-determined floating exchange rates and to sharpen the focus on fundamental exchange rate misalignment.". He said the IMF staff must do a better job on day-to-day exchange rate surveillance, particularly in the annual consultations on economic policy that the fund holds with its 185 member nations. (Coos Bay-North Bend The World, OR)
Reducing the Risk from Global Imbalances, Remarks by John Lipsky, First Deputy Managing Director, International Monetary Fund, at the Ambrosetti 18th Annual Forum The Outlook for Financial Markets, Cernobbio, Italy Apr 3, 2007
" What makes the performance of the global economy over the last five years even more impressive is that it has come in the face of adversity. Terrorist attacks have claimed lives and disrupted economic activity in many countries over this period. High and volatile oil prices have also posed a challenge. Looking ahead, there are clearly many risks to the global outlook that bear close watching. Spillovers from ongoing corrections in the U.S. housing market and in financial markets are of course... (IMF News)
Stability in the swing element Mar 11, 2007
In a world of floating exchange rates it can't but change -- perhaps even dramatically. There are therefore three elements to the outlook for the Aussie dollar. (Melbourne Herald Sun)
Fact Sheet: The Economic Report of the President Feb 13, 2007
Over much of the 20th century, countries tended to favor fixed exchange rates, but in recent decades there has been a shift toward freely floating exchange rates. Monetary and exchange-rate policies are tightly linked. (White House News Releases)
