The International Financial System
Giddy
Exchange Rate Systems and Policies/1
The International
Financial System
Prof. Ian Giddy
New York University
Global Financial Architecture
l
l
l
Institutions
Issues
Exchange-rate system
Copyright ?2002 Ian H. Giddy
Exchange Rate Systems and Policies 2
Giddy
Exchange Rate Systems and Policies/2
Global Financial Architecture
l
l
l
Institutions
Governments
Issues
Exchange-rate system
Governments
World Bank
Central
Banks
International
Monetary
Fund
Banks
Investors
Financial
Markets
Copyright ?2002 Ian H. Giddy
Businesses
Exchange Rate Systems and Policies 3
Alternative Bank-Industry Linkages
Individuals
The EquityMarket
System
Banks
The BankBased
System
Banks /
Investment Vehicles
The BankIndustrial
Crossholding
System
Investment Vehicles
Industrial Companies
Individuals
Investment
Vehicles & Insurance
Industrial Companies
Individuals
Banks
Investment
Vehicles & Insurance
Industrial Companies
Industrial Companies
The Statecentered
System
Banks /
Investment Vehicles
Investment
Vehicles & Insurance
State Institutions
Industrial Companies
Copyright ?2002 Ian H. Giddy
Individuals
Industrial Companies
Exchange Rate Systems and Policies 4
Giddy
Exchange Rate Systems and Policies/3
Global Financial Architecture
l
l
l
Institutions
Issues
Exchange-rate system
n
Reasons for the boom-bust character of
capital flows to emerging market
economies?
n
What measures should be taken to deal
with the instability of capital flows?
n
Role of IMF? Conditionality?
n
Role of World Bank? Conditionality?
n
Role of private sector institutions?
n
Exchange rate regime?
Copyright ?2002 Ian H. Giddy
Exchange Rate Systems and Policies 5
Global Financial Architecture
l
l
l
Institutions
Issues
Exchange-rate system
Copyright ?2002 Ian H. Giddy
Exchange Rate Systems and Policies 6
Giddy
Exchange Rate Systems and Policies/4
Exchange-Rate Systems
l
l
l
l
l
Some history
What is ¡°the international monetary system¡±
today?
Fixed versus floating exchange rates
The balance of payments and the adjustment
process
The European Monetary System
Copyright ?2002 Ian H. Giddy
Exchange Rate Systems and Policies 7
History of the World
l
Gold, inflation and exchange rates: the first
100 years
War, depression and competitive devaluation
l
Bretton Woods
l
1971 and floating rates
l
Currency blocs?
l
Copyright ?2002 Ian H. Giddy
Exchange Rate Systems and Policies 8
Giddy
Exchange Rate Systems and Policies/5
To Fix or To Float, That is the Question
Independent free float
Floating
Economic
circumstances,
and
Economic
policies
Managed float
Frequent devaluations or
revaluations
Crawing peg
Tied by formula to inflation
index
Basket peg
Fixed
Pegged to one currency
Absolutely fixed to one
currency
Copyright ?2002 Ian H. Giddy
Exchange Rate Systems and Policies 9
The Balance of Payments
Transylvania¡¯s Balance of Payments
Debits
Exports ( goods sold to foreigners)
Imports (goods bought from
foreigners)
Services, like tourism (and
interest paid/received
Aid (a ¡°plug¡±)
Financial and real assets sold to
foreigners (¡°capital inflows¡±)
Financial and real assets bought
from foreigners (¡°capital outflows¡¯)
Government¡¯s financial assets sold
(Foreign exchange reserves reduced)
Government¡¯s financial assets
bought (Foreign exchange
reserves increased)
Errors and Omissions
Total
Copyright ?2002 Ian H. Giddy
Cred its
11
-16
-2
Trade
Balance
-5
3
Current
Account
Balance
-3
1
3
Overall
Balance
-2
-2
3
-1
-21.00
21.00
Exchange Rate Systems and Policies 10
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- chapter 6 market efficiency definition tests and
- chapter 5 human rights and arrest pre trial
- outsourcing past present and future
- owning real estate outside the usa
- oil and gas in latin america
- foreign owned companies in
- 2 outcomes when foreigners buy factories new york times
- foreign investment in the united states major federal
- the international financial system
- thoughts on freedom by donald j boudreaux
Related searches
- international financial services corp
- international financial group chicago
- international financial management quizlet
- international education system rankings
- international financial management course outline
- international financial scams
- international financial reporting system
- international financial company
- the international system of units
- how the financial system works
- 3 2 the international system of units
- 3 2 the international system of units key