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