by Haberler
[Title Page and Publication Information]: Title page and publication details for two essays by Gottfried Haberler regarding the international monetary system, including acknowledgments of original publication in the Japan Economic Journal and a speech at the University of Rochester. [The International Monetary System after Nairobi]: Haberler analyzes the state of the international monetary system following the Nairobi meeting, arguing that the disagreement over 'asset convertibility' is less critical than 'market convertibility.' He defends the efficacy of floating exchange rates against critics like Giscard d'Estaing, asserting that floating is a consequence of divergent national inflation rates rather than their cause. The essay distinguishes between 'managed' and 'dirty' floating, critiques the 'adjustable peg' system for inviting speculation, and concludes that the current informal floating regime is functioning well despite the lack of a formal agreement. [Prospects for the International Monetary Order]: This essay explores the breakdown of the Bretton Woods system, attributing its failure to an inherent inflationary bias in fixed exchange rate regimes where countries refuse deflation. Haberler critiques the 'stable but adjustable parities' proposal, arguing it exacerbates destabilizing speculation, and instead advocates for continued floating. He provides a historical re-evaluation of the 1930s, arguing that 'competitive devaluation' was a result of excessive rigidity rather than floating, and suggests that the IMF should focus on supervising 'clean' floating rather than resurrecting fixed pegs. [Postscript: Reflections on the Balance-of-Payments Aspects of the Energy Crisis]: Haberler examines the impact of the 1973 oil price hike on the international monetary system, arguing that the resulting $50 billion transfer to oil exporters necessitates a shift in exchange rates and the acceptance of current account deficits by industrial nations. He posits that the dollar's strength is a logical market reaction and that the crisis further proves the necessity of floating exchange rates. The postscript also critiques the French decision to float the franc as a move to avoid balance-of-payments discipline, while warning against protectionist responses to 'currency dumping.'
Title page and publication details for two essays by Gottfried Haberler regarding the international monetary system, including acknowledgments of original publication in the Japan Economic Journal and a speech at the University of Rochester.
Read full textHaberler analyzes the state of the international monetary system following the Nairobi meeting, arguing that the disagreement over 'asset convertibility' is less critical than 'market convertibility.' He defends the efficacy of floating exchange rates against critics like Giscard d'Estaing, asserting that floating is a consequence of divergent national inflation rates rather than their cause. The essay distinguishes between 'managed' and 'dirty' floating, critiques the 'adjustable peg' system for inviting speculation, and concludes that the current informal floating regime is functioning well despite the lack of a formal agreement.
Read full textThis essay explores the breakdown of the Bretton Woods system, attributing its failure to an inherent inflationary bias in fixed exchange rate regimes where countries refuse deflation. Haberler critiques the 'stable but adjustable parities' proposal, arguing it exacerbates destabilizing speculation, and instead advocates for continued floating. He provides a historical re-evaluation of the 1930s, arguing that 'competitive devaluation' was a result of excessive rigidity rather than floating, and suggests that the IMF should focus on supervising 'clean' floating rather than resurrecting fixed pegs.
Read full textHaberler examines the impact of the 1973 oil price hike on the international monetary system, arguing that the resulting $50 billion transfer to oil exporters necessitates a shift in exchange rates and the acceptance of current account deficits by industrial nations. He posits that the dollar's strength is a logical market reaction and that the crisis further proves the necessity of floating exchange rates. The postscript also critiques the French decision to float the franc as a move to avoid balance-of-payments discipline, while warning against protectionist responses to 'currency dumping.'
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