Do Exchange Rates Work? Another View

April 1, 1991

Preview Citation

Format: Chicago

Robert A. Mundell Do Exchange Rates Work? Another View, (USA: International Monetary Fund, 1991) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper investigates the role of exchange rates in balance of payments theories. It explores the sixteen approaches to the balance of payments, the concept of an “equilibrium” trade balance and sequential “stages” of the current account. It examines fiscal and demographic influences on the U.S. deficit. The final section considers the breakdown of the international monetary system after World Wars I and II; an evaluation of alternative proposals to correct the defects of the system; and an examination of the extent to which deficits of reserve countries have their origins in systemic problems.

Subject: Commodities, Exchange rate flexibility, Exchange rates, Foreign exchange, Gold, International trade, Trade balance, Trade deficits

Keywords: Balance of trade, Budget deficit, Current account, Eastern Europe, Excess supply, Exchange rate flexibility, Exchange rates, Flexible exchange rate system, Global, Gold, Gold standard, International monetary system, Paper gold, Pound sterling, Price level, Trade balance, Trade deficit, Trade deficits, WP

Publication Details

Pages:

58
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1991/037
Stock No:

WPIEA0371991
ISBN:

9781451977769
ISSN:

1018-5941

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