宏观经济学HUBBARD_MACRO_SG_18的.pdfVIP

Chapter18(30)

TheInternationalFinancial

System

ChapterSummary

Whencountriesagreeonhowexchangeratesshouldbedetermined,economistssaythatthereisan

exchangeratesystem.Afloatingcurrencyistheoutcomeofacountryallowingitscurrency’sexchange

ratetobedeterminedbydemandandsupply.Thecurrentexchangeratesystemisamanagedfloat

exchangeratesystemunderwhichthevalueofmostcurrenciesisdeterminedbydemandandsupply,

withoccasionalgovernmentintervention.Afixedexchangeratesystemisasystemunderwhich

countriesagreetokeeptheexchangeratesamongtheircurrenciesfixed.

Thetheoryofpurchasingpowerparitystatesthatinthelongrun,exchangeratesmovetoequalizethe

purchasingpowerofdifferentcurrencies.Thistheoryhelpstoexplainsomeofthelong-runmovementsin

thevalueoftheU.S.dollarrelativetoothercurrencies.Purchasingpowerparitydoesnotprovidea

completeexplanationofmovementsinexchangeratesforseveralreasons,includingtheexistenceof

tariffs,taxesimposedbyagovernmentonimports,andquotas,government-imposedlimitsonthe

quantityofagoodthatcanbeimported.Whenacountrykeepsitscurrency’sexchangeratefixedagainst

anothercountry’scurrency,itispeggingitscurrency.

LearningObjectives

Whenyoufinishthischapter,youshouldbeableto:

1.Understandhowdifferentexchangeratesystemsoperate.Whencountriesagreeonhowexchange

ratesshouldbedetermined,economistssaythatthereisanexchangeratesystem.Acurrencyfloats

whenitsexchangerateisdeterminedbydemandandsupply.Thecurrentexchangeratesystemisa

managedfloatexchangeratesystemunderwhichthevalueofmostcurrenciesis