Exchange rate determination and the flaws of mainstream monetary theory
Bibliographic Data
| ID | 4970201 |
|---|---|
| Authors | Heiner Flassbeck (United Nations Conference on Trade and Development, corresponding author) |
| Year | 2018 |
| Volume | 38 |
| Issue | 1 |
| Pages | 99-114 |
| Publication date | 2018-03-18 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Brazilian Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0101-3157 • E-ISSN: 1809-4538 |
| Publisher | FapUNIFESP (SciELO) (PUBLISHER) |
| DOI | 10.1590/0101-31572018v38n01a06 |
| OpenAlex | W2790391671 |
| SCIELO_PID | S0101-31572018000100099 |
| Language | EN |
| Citations received | 2 |
| References cited | 1 |
Developing countries in general need flexibility and a sufficient number of instruments to prevent excessive volatility. Evidence does not support the orthodox belief that, with free floating, international financial markets will perform that role by smoothly adjusting exchange rates to their "equilibrium" level. In reality, exchange rates under a floating regime have proved to be highly unstable, leading to long spells of misalignment. The experience with hard pegs has not been satisfactory either: the exchange rate could not be corrected in cases of external shocks or misalignment. Given this experience, "intermediate" regimes are preferable when there is instability in international financial markets
Economics · Exchange rate · Exchange-rate flexibility · Exchange-rate regime · Financial economics · Financial market · Flexibility (engineering · Instability · International economics · Mainstream · Monetary economics · Physics · Volatility (finance · Economic Theory and Policy · Finance · Global Financial Crisis and Policies · Monetary Policy and Economic Impact
| Unique citing works | 2 |
|---|---|
| Citations per year | 0,29 |
| Citation span | 2019 - 2021 (3) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |