Chapter 5 International Exchange System 第五章国际汇率制度 第一节固定汇率制 Fixed Rate Systen The world economy operated under a system of fixed dollar exchange rates between the end of World War ll and 1973. with central banks routinely trading foreign exchange to hold their exchange rates at internationally agreed levels
Chapter 5 International Exchange System • 第五章 国际汇率制度 • 第一节 固定汇率制Fixed Rate System • The world economy operated under a system of fixed dollar exchange rates between the end of World War II and 1973, with central banks routinely trading foreign exchange to hold their exchange rates at internationally agreed levels
Two kinds of the fixed exchange rates 1。金本位制度下的固定汇率制 2.纸币流通制度下的固定汇率制 Gold standard规定货币单位的含金量。 含金望的的对比法定汇卓 金币可以自铸造;自由兑换;自输出 入
Two kinds of the fixed exchange rates 1. 金本位制度下的固定汇率制 2. 纸币流通制度下的固定汇率制 Gold Standard:规定货币单位的含金量。 含金量的的对比决定汇率。 金币可以自由铸造；自由兑换；自由输出 入
The Gold standard An international gold standard avoids the aSymmetry Inherent in a reserve currency standard by avoiding the "Nth currency problem, Under a gold standard, each country fixes the price of its currency in terms of gold by standing ready to trade domestic currency for gold whenever necessary to defend the official price
The Gold Standard • An international gold standard avoids the asymmetry inherent in a reserve currency standard by avoiding the “Nth currency” problem. Under a gold standard, each country fixes the price of its currency in terms of gold by standing ready to trade domestic currency for gold whenever necessary to defend the official price
Advantage of the Gold Standard Because there are N currency and N prices of gold in terms of those currencies, no single country occupies a privileged position within the system: each is responsible for pegging its currency's price in terms of the official international reserve asset, gold. Gold standard rules also require each country to allow unhindered imports and exports ofgolo across its borders
Advantage of the Gold Standard • Because there are N currency and N prices of gold in terms of those currencies, no single country occupies a privileged position within the system: each is responsible for pegging its currency’s price in terms of the official international reserve asset, gold. Gold standard rules also require each country to allow unhindered imports and exports of gold across its borders
Benefits and drawbacks of the Gold standard Benefits 1. Symmetry 2. Price level and value of national money are more stable and predictable 3. Enhance international transactions
Benefits and drawbacks of the Gold Standard • Benefits: 1. Symmetry 2. Price level and value of national money are more stable and predictable 3. Enhance international transactions
Drawbacks日 1. Constraints on the use of monetary policy to fight unemployment 2. Tying currency values to gold ensures a stable overall price level only if the relative price of gold is stable, gold discovery in South America 3. An international payments system based on gold is problematic because central banks cannot increase their holdings of international reserves as their economies grow unless there are continual new gold discoveries 4. The gold standard gives gold-producing countries power to influence the world economy
Drawbacks: 1. Constraints on the use of monetary policy to fight unemployment. 2. Tying currency values to gold ensures a stable overall price level only if the relative price of gold is stable.→gold discovery in South America 3. An international payments system based on gold is problematic because central banks cannot increase their holdings of international reserves as their economies grow unless there are continual new gold discoveries. 4. The gold standard gives gold-producing countries power to influence the world economy
The Gold Exchange Standard Halfway between the gold standard and a pure reserve currency standard is the gold exchange standard. Central banks' reserves consist of gold and currencies whose prices in terms of gold are fixed, and each central bank fixes its exchange rate to a currency with a fixed gold price More flexibility in the growth of international reserves
The Gold Exchange Standard • Halfway between the gold standard and a pure reserve currency standard is the gold exchange standard. Central banks’ reserves consist of gold and currencies whose prices in terms of gold are fixed, and each central bank fixes its exchange rate to a currency with a fixed gold price. • More flexibility in the growth of international reserves
Fixed Exchange Rates under currency-circulation system 纸币流通下的布板杯体系。1944 Bretton Woods agreement 英国向美国妥协的结果“巫挂钩”体系 1%幅度波动 各国货币 1盎司=35美元 美元 dollar日元 金块 里拉
Fixed Exchange Rates under currency-circulation system • 纸币流通下的布雷顿森林体系。1944 • Bretton Woods agreement • 英国向美国妥协的结果“双挂钩”体系。 金块 美元dollar 各国货币 日元… 里拉… 1盎司=35美元 1%幅度波动
How to sustain the fixed rate 维持固定汇率制的手段: 1。动用黄金储备(储备项目) 2.利用贴现政策(资本项目) 3,施行外汇管制(或签订互换货币协定) 4,实行法定贬值( last resort)
How to sustain the Fixed Rate • 维持固定汇率制的手段： 1. 动用黄金储备（储备项目） 2. 利用贴现政策（资本项目） 3. 施行外汇管制（或签订互换货币协定） 4. 实行法定贬值（last resort）
Dilemma of us dollar 向他国提供美元 美国逆差 收支平衡 保持对美元信心
Dilemma of US dollar 美国逆差 收支平衡 向他国提供美元 保持对美元信心