publication . Preprint . 1989

International Monetary Stability Between the Wars: Structural Flaws or Misguided Policies?

Eichengreen, Barry;
Open Access
  • Published: 01 Nov 1989
Abstract
This paper examines the international monetary system between the Wars. It confirms the generality of several widely held interpretations of recent experience with floating exchange rates. There is a positive association between nominal exchange rate flexibility and nominal exchange rate variability, and between nominal and real exchange rate variability. But policies which reduce nominal exchange rate variability do not guarantee a proportionate reduction in nominal exchange rate risk or in real exchange rate variability and unpredictability without a credible commitment to a stable intervention rule.The paper then considers four potential explanations for the ...
Subjects
free text keywords: Bank Instability; Great Depression; International Coordination; International Monetary System
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