Approaches to Greater Flexibility of Exchange Rates: The Bürgenstock Papers

C. Fred Bergsten; George Nikolaus Halm

Published by Princeton University Press 1970

Approaches to Greater Flexibility of Exchange Rates

The Bürgenstock Papers

C. Fred Bergsten and George Nikolaus Halm

Volume 1441 in the series Princeton Legacy Library

https://doi.org/10.1515/9781400867271

Overview
Contents

About this book

This volume contains the papers presented and comments made at two conferences on the controversial subject of greater flexibility of exchange rates. The first of the conferences was held at Oyster Bay, New York, early in 1969, the second at Bürgenstock, Switzerland, in the summer of 1969. One half of the 40 conferees were academic economists, the others were practitioners of the foreign exchange markets, mostly bankers and a few executives of international business firms. Both the opposition to greater flexibility of exchange rates and the advocacy of more flexible systems are represented in these papers. The contrast between fixed or jumping exchange rates and gliding exchange rates is clearly described and the various systems of increased flexibility, such as the "wider band" and the "crawling peg," are explained and examined.

Originally published in 1970.

The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

Topics

Frontmatter Publicly Available Download PDF	i
Preface Requires Authentication Unlicensed Licensed Download PDF	v
Contents Publicly Available Download PDF	ix
Part I. Introduction
1. Toward Limited Flexibility of Exchange Rates George N. Halm Requires Authentication Unlicensed Licensed Download PDF	3
2. Two Lists of Topics for Further Study and a Proposed Outline for Conference Papers Robert V. Roosa, Milton Friedman and C. Fred Bergsten Requires Authentication Unlicensed Licensed Download PDF	27
3. On Terms, Concepts, Theories, and Strategies in the Discussion of Greater Flexibility of Exchange Rates Fritz Machlup Requires Authentication Unlicensed Licensed Download PDF	31
4. Currency Parities in the Second Decade of Convertibility Robert V. Roosa Requires Authentication Unlicensed Licensed Download PDF	49
5. Comments on Mr. Roosa’s Paper George N. Halm Requires Authentication Unlicensed Licensed Download PDF	57
6. The United States and Greater Flexibility of Exchange Rates C. Fred Bergsten Requires Authentication Unlicensed Licensed Download PDF	61
7. Decision-Making on Exchange Rates Stephen N. Marris Requires Authentication Unlicensed Licensed Download PDF	77
Part II. The Case for Greater Flexibility of Exchange Rates
8. The Case for Flexible Exchange Rates, 1969 Harry G. Johnson Requires Authentication Unlicensed Licensed Download PDF	91
9. Comments on Mr. Johnson’s Paper George N. Halm Requires Authentication Unlicensed Licensed Download PDF	112
10. The International Monetary System: Some Recent Developments and Discussions Gottfried Haberler Requires Authentication Unlicensed Licensed Download PDF	115
11. Fixed Exchange Rates and the Market Mechanism George N. Halm Requires Authentication Unlicensed Licensed Download PDF	125
12. The Adjustment Process, Its Asymmetry, and Possible Consequences Marius W. Holtrop Requires Authentication Unlicensed Licensed Download PDF	129
13. Entrepreneurial Risk under Flexible Exchange Rates Herbert Giersch Requires Authentication Unlicensed Licensed Download PDF	145
14. The Wider Band and Foreign Direct Investment David L. Grove Requires Authentication Unlicensed Licensed Download PDF	151
15. The Business View of Proposals for International Monetary Reform John H. Watts Requires Authentication Unlicensed Licensed Download PDF	167
Part III. The Case Against Flexible Exchange Rates
16. The Outlook for the Present World Monetary System Peter M. Oppenheimer Requires Authentication Unlicensed Licensed Download PDF	179
17. Comments on Mr. Oppenheimer's Paper: A More Optimistic View Thomas D. Willett Requires Authentication Unlicensed Licensed Download PDF	186
18. Could the Crises of the Last Few Years Have Been Avoided by Flexible Exchange Rates? Max Iklé Requires Authentication Unlicensed Licensed Download PDF	187
19. Notes for the Biirgenstock Conference Antonio Mosconi Requires Authentication Unlicensed Licensed Download PDF	199
20. Why I Am Not in Favor of Greater Flexibility of Exchange Rates Giuliano Pelli Requires Authentication Unlicensed Licensed Download PDF	203
21. Greater Flexibility of Exchange Rates: Effects on Commodities, Capital, and Money Markets Emil Kuster Requires Authentication Unlicensed Licensed Download PDF	209
22. Selected Case Studies Relating to Foreign- Exchange Problems in International Trade and Money Markets Emil Kuster Requires Authentication Unlicensed Licensed Download PDF	211
23. Comments on Mr. Kuster's Paper Richard N. Cooper Requires Authentication Unlicensed Licensed Download PDF	216
Part IV. Practical Proposals and Suggestions for Implementation
24. The International Monetary Game: Objectives and Rules Lawrence B. Krause Requires Authentication Unlicensed Licensed Download PDF	223
25. When and How Should Parities Be Changed? Robert V. Roosa Requires Authentication Unlicensed Licensed Download PDF	233
26. A “Realistic” Note on Threefold Limited Flexibility of Exchange Rates William Fellner Requires Authentication Unlicensed Licensed Download PDF	237
27. Asymmetrical Widening of the Bands Around Parity George H. Chittenden Requires Authentication Unlicensed Licensed Download PDF	245
28. Sliding Parities: A Proposal for Presumptive Rules Richard N. Cooper Requires Authentication Unlicensed Licensed Download PDF	251
29. The Fixed-Reserve Standard: A Proposal to "Reverse" Bretton Woods Donald B. Marsh Requires Authentication Unlicensed Licensed Download PDF	261
30. Rules for a Sliding Parity: A Proposal Thomas D. Willett Requires Authentication Unlicensed Licensed Download PDF	271
31. Some Implications of Flexible Exchange Rates, Including Effects on Forward Markets and Transitional Problems C. M. Van Vlierden Requires Authentication Unlicensed Licensed Download PDF	275
32. A Technical Note on the Width of the Band Required to Accommodate Parity Changes of Particular Size Harry G. Johnson Requires Authentication Unlicensed Licensed Download PDF	280
33. Short-Term Capital Movements and the Interest-Rate Constraint Under Systems of Limited Flexibility of Exchange Rates Thomas D. Willett Requires Authentication Unlicensed Licensed Download PDF	283
Part V. Exchange-Rate Flexibility and the Forward Market
34. The Forward-Exchange Market: Misunderstandings Between Practitioners and Economists Fritz Machlup Requires Authentication Unlicensed Licensed Download PDF	297
35. Forward Currency “Costs”: A Zero Sum Game? John H. Watts Requires Authentication Unlicensed Licensed Download PDF	307
36. Comments on Mr. Watts's Paper Fritz Machlup Requires Authentication Unlicensed Licensed Download PDF	309
37. Exchange Risks and Forward Coverage in Different Monetary Systems Egon Sohmen Requires Authentication Unlicensed Licensed Download PDF	311
38. The Effect on the Forward-Exchange Market of More Flexible Rates W.F.J. Batt Requires Authentication Unlicensed Licensed Download PDF	317
39. Comments on Mr. Batt’s Paper Fritz Machlup Requires Authentication Unlicensed Licensed Download PDF	320
40. Flexible Exchange Rates and Forward Markets Edwin A. Reichers and Harold Van B. Cleveland Requires Authentication Unlicensed Licensed Download PDF	323
Part VI. Potential Impact of Exchange-Rate Flexibility on Different Countries or Groups of Countries
41. Canada’s Experience with a Floating Exchange Rate, 1950-1962 Donald B. Marsh Requires Authentication Unlicensed Licensed Download PDF	337
42. A Floating German Mark: An Essay in Speculative Economics Herbert Giersch and Wolfgang Kasper Requires Authentication Unlicensed Licensed Download PDF	345
43. Japan’s Twenty-Year Experience with a Fixed Rate for the Yen Tadashi Iino Requires Authentication Unlicensed Licensed Download PDF	357
44. The Problem of Floating Exchange Rates from the Swiss Viewpoint Max Iklé Requires Authentication Unlicensed Licensed Download PDF	365
45. Balance-of-Payments and Exchange-Rate Problems in Sweden, Denmark, and Finland Erik Lundberg and Ake Lundgren Requires Authentication Unlicensed Licensed Download PDF	371
46. European Integration and Greater Flexibility of Exchange Rates Wolfgang Kasper Requires Authentication Unlicensed Licensed Download PDF	385
47. Comments on Mr. Kasper's Paper: Requiem for European Integration Antonio Mosconi Requires Authentication Unlicensed Licensed Download PDF	388
48. Comments on the Papers by Messrs. Mosconi and Kasper: Red Herrings, Carts, and Horses Stephen N. Marris Requires Authentication Unlicensed Licensed Download PDF	392
49. The Agricultural Regulations of the European Economic Community as an Obstacle to the Introduction of Greater Flexibility of Exchange Rates Friedrich A. Lutz Requires Authentication Unlicensed Licensed Download PDF	401
50. The Concept of Optimum Currency Areas and the Choice Between Fixed and Flexible Exchange Rates Thomas D. Willett and Edward Tower Requires Authentication Unlicensed Licensed Download PDF	407
Part VII. Miscellany
51. Import Border Taxes and Export-Tax Refunds Versus Exchange-Rate Changes Gottfried Haberler Requires Authentication Unlicensed Licensed Download PDF	417
52. Government and the Corporation: A Fallacious Analogy Harry G. Johnson Requires Authentication Unlicensed Licensed Download PDF	425
Contributors Requires Authentication Unlicensed Licensed Download PDF	427
Index Requires Authentication Unlicensed Licensed Download PDF	429