《management企业管理类英文版PPT课件13.pptVIP

Chapter 17 Fixed Exchange Rates and Foreign Exchange Intervention Preview Balance sheets of central banks Intervention in the FX market and the MS How the central bank fixes the e.r. Monetary and fiscal policies under fixed e.r. Financial market crises and capital flight Types of fixed exchange rates: reserve currency and gold standard systems Zero interest rates, deflation and liquidity traps Exchange Rate Regimes Policies aimed at influencing exchange rates are widespread, even in countries that claim to float their currency: “managed floating” is often a more accurate description. The central bank “manages” the exchange rate from time to time by buying and selling currency and assets, especially in periods of exchange rate volatility. Other countries try to fix or “peg” their e.r. to a currency or group of currencies by intervening in the FX market. The United States (almost) floats the dollar, but most countries fix or manage exchange rates. Exchange rate regimes: In March 2001, the exchange rate regimes of 186 countries were, according to the IMF: Fixed (pegged) regimes Countries without separate currency: 39 Currency board arrangements: 8 Other fixed exchange rate arrangements: 44 ..................................................................................................... Intermediate regimes Crawling pegs: 4 Fixed exchange rate bands: 6 Crawling exchange rate bands: 5 Managed floating: 33 ..................................................................................................... Free floating: 47 Fixed Exchange Rate Regimes Countries without their own currency: 39 Countries using a currency of another country, or sharing their currency with other countries. Include Euro Area countries (Germany, France, Italy, etc.); (could include New Jersey, New York, ...) Currency board arra