The International Monetary System: A Time of Turbulence

By Jacob S. Dreyer; American Enterprise Institute for Public Policy Research | Go to book overview

Preface

Flexible exchange rates have always been controversial. Advocated for a long time by many academic economists, they were often looked upon with suspicion, even hostility, by most practitioners of international finance. In the early 1970s the growing crisis of the pegged exchange rate system forced a reluctant adoption of flexible rates by the major industrial countries. Resort to exchange rate flexibility was a stopgap measure, not a deliberate attempt to reform the international monetary system.

Initially, it was widely assumed that the international monetary system would soon return to some new form of generally pegged rates, albeit perhaps allowing greater scope for exchange rate flexibility.

Experience with floating rates, however, showed them to be a much more viable basis for the evolving international monetary arrangements than critics had anticipated. Not only did greater exchange rate flexibility help cushion the severe international financial shocks of the oil price explosion, but as underlying economic and financial conditions began to stabilize, so did the volatility of exchange rates.

Although criticism of floating rates was never fully muted, appreciation of the contributions that flexible rates could make in reducing a wide range of international monetary problems led to their institutionalization in the Second Amendment of the International Monetary Fund's Articles of Agreement, which recognized flexible rates as an integral element of the new international monetary system.

In 1976 the American Enterprise Institute organized a conference to review the experience of the initial years of floating and to consider some of the major problems involved in the operation of the new flexible rate system, such as international surveillance of exchange rate management to guard against beggar-thy-neighbor policies and the management of international liquidity.

Since the time of that conference, the international monetary climate has shown signs of worsening substantially. The resurgence of strong inflationary pressures in a number of major countries, including

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The International Monetary System: A Time of Turbulence
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 523

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.