chapter 3 Exchange Rate Systems.ppt

Exchange Rate Systems Past to Present Chapter 3 Exchange-Rate Systems, Past to Present 汇率制度，过去和现状 Exchange Rate Systems Concepts Monetary Order: A set of laws and regulations that establishes the framework within which individuals conduct and settle transactions. Commodity money, a commodity-backed money, or fiat money 商品货币，商品支持货币还是法币（不兑现纸币） Exchange-Rate System: A set of rules that determine the international value of a nation’s currency. Convertibility: The ability to freely exchange a currency for a reserve commodity or reserve currency. Three important exchange-rate systems: The Gold Standard 金本位制 The Bretton Woods system 布雷顿森林体系 Post-Bretton Woods floating-rate system 后布雷顿浮动体系 1. The Gold Standard 1.1 Features Came into effect in the mid-1870s when most of the major economies unilaterally pegged to gold. mint parity : Nations would fix an official price of gold in terms of the national currency. 铸币( 法定)平价：国家将黄金的官方价格以国家货币的形式固定下来。 Gold parity rates determined the exchange rate between currencies. 1.2 Gold Standard and Exchange Values Because each country valued its currency relative to gold, this indirectly established an exchange value between the domestic. Question: How does a gold standard constitute an exchange –rate system? P57: A gold standard constitutes an exchange-rate system for an adopting nation because it establishes a domestic and international rate of exchange between the domestic currency and gold. A gold standard also links the exchange-rate system between gold and a nation’s currency indirectly establishes rates of exchange among all of the currencies. 1.2 Gold Standard and Exchange Values Pegging the value of each currency to gold established an exchange rate system. The mint parity rates determined the exchange value between two currencies. 1.3 Performance of the Gold Standard Positive and Negative aspects of a Gold Standard 金本位的积极与消极方面 P: The gold standard promoted long-run stability of nation’s money stock and long-run stabil