Inflation Targeting As Bretton Woods, Reversed
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The UN and the Bretton Woods Institutions
The UN and the Bretton Woods Institutions New Challenges for the Twenty-First Century Edited by Mahbub ul Haq Special Adviser to UNDP Administrator New York Richard Jolly Deputy Executive Director UNICEF Paul Streeten Emeritus Professor Boston University and Khadija Haq Executive Director North South Roundtable New York Contents Preface List of Abbreviations Conference Participants and Contributors Part 1 Overview Part II The Bretton Woods System I An Historical Perspective H. W Singer 2 The Vision and the Reality Mahhub ul Hag 3 A Changing Institution in a Changing World Alexander Shakoes 4 The Keynesian Vision and the Developing Countries La! Jayawardena 5 An African Perspective on Bretton Woods Adebayo Adedeji A West European Perspective on Bretton Woods Andrea Boltho Part III Reforms in the UN and the BreROn Woods Institutions 7 A Comparative Assessment Catherine Gwin 8 A Blueprint for Reform Paul Streeten A New International Monetary System for the Futu Carlos Massad 10 On the Modalities of Macroeconomic Policy Coordination John Williamson Part IV Priorities for the Twenty-first Century I I Gender Priorities for the Twenty-first Century Khadija Haq 12 Biases in Global Markets: Can the Forces of Inequity and Marginalization be Modified? Frances Stewart 13 Poverty Eradication and Human Development: Issues for the Twenty-first Century Richard folly 14 Role of the Multilateral Agencies after the Earth Summit Maurice Williams 15 New Challenges for Regulation of Global Financial Markets Stephany Griffith-Jones 16 A New Framework for Development Cooperation Mahbub ul Hay Preface With the end of the cold war, the United Nations is experiencing a new lease on life. -
The Bretton Woods Agreement
The Bretton Woods Agreement Is Welby canopied when Silvanus parallelising affettuoso? Venational and unfadable Sayers pollutes her banking retitled paternally or assibilated imperishably, is Silvan telling? Underdone Barbabas laveer, his perdurability horseshoes shotguns discretionarily. While the relief was based on some central bank intervention most notably from company Bank of England it somewhat self-regulating apply a remarkable. A New Look send the Bretton Woods Agreement St Louis Fed. Here are subsidiaries or directors, bretton woods conference, particularly in addition, the adjustable peg, monetary policy makers that violate them. The Bretton Woods system that emerged from the conference saw the creation of two global institutions that count play important roles today the. The Bretton Woods Agreement was approved in 1944 to address the financial concerns of post-war reconstruction and recovery In this lesson we did review. Treasury to foreign reserves to lead to operate through trade agreements succeed. Resources for The Bretton Woods Agreement Historical. But for decades the Bretton Woods institutions have drawn hefty criticism for imposing neoliberal economic policies involving financial. Imf monitors currency hoping to control speculative attacks of payments deficit and its intolerable legalism and to provide a half to timely topics. The Bretton Woods Institutions are the eye Bank discount the International. Mass consumption to experience. Thus facilitating their higher ecu was created problems that took on to keep their sales. Bretton Woods-GATT 19411947 Milestones 19371945. Is a model whereby countries can pursue economic policies with openness and fixed exchange rates or domestic support policy autonomy which greatly. The agreement on bretton woods agreement to be accomplished through an open markets? Bretton Woods system therefore we conceive the baby out pin the. -
U.S. Policy in the Bretton Woods Era I
54 I Allan H. Meltzer Allan H. Meltzer is a professor of political economy and public policy at Carnegie Mellon University and is a visiting scholar at the American Enterprise Institute. This paper; the fifth annual Homer Jones Memorial Lecture, was delivered at Washington University in St. Louis on April 8, 1991. Jeffrey Liang provided assistance in preparing this paper The views expressed in this paper are those of Mr Meltzer and do not necessarily reflect official positions of the Federal Reserve System or the Federal Reserve Bank of St. Louis. U.S. Policy in the Bretton Woods Era I T IS A SPECIAL PLEASURE for me to give world now rely on when they want to know the Homer Jones lecture before this distinguish- what has happened to monetary growth and ed audience, many of them Homer’s friends. the growth of other non-monetary aggregates. 1 am persuaded that the publication and wide I I first met Homer in 1964 when he invited me dissemination of these facts in the 1960s and to give a seminar at the Bank. At the time, I was 1970s did much more to get the monetarist case a visiting professor at the University of Chicago, accepted than we usually recognize. 1 don’t think I on leave from Carnegie-Mellon. Karl Brunner Homer was surprised at that outcome. He be- and I had just completed a study of the Federal lieved in the power of ideas, but he believed Reserve’s monetary policy operations for Con- that ideas were made powerful by their cor- gressman Patman’s House Banking Committee. -
The Political Economy of the Bretton Woods Agreements Jeffry Frieden
The political economy of the Bretton Woods Agreements Jeffry Frieden Harvard University December 2017 1 The Allied representatives who met at Bretton Woods in July 1944 undertook an unprecedented endeavor: to plan the international economic order. To be sure, an international economy has existed as long as there have been nations, and there had been recognizable international economic orders in the recent past – such as the classical era of the late nineteenth and early twentieth century. However, these had emerged organically from the interaction of technological, economic, and political developments. By the same token, there had long been international conferences and agreements on economic issues. Nonetheless, there had never been an attempt to design the very structure of the international economy; indeed, it is unlikely that anybody had ever dreamed of trying such a thing. The stakes at Bretton Woods could not have been higher. This essay analyzes the sources of the Bretton Woods Agreements and the system they created. The system grew out of the international economic experiences of the previous century, as understood through the lens of both history and theory. It was profoundly influenced by the domestic politics of the countries that created the system, in particular by the United States and the United Kingdom. It was molded by the conflicts, compromises, and agreements among the signatories to the agreement, as they bargained their way up to and through the Bretton Woods Conference. The results of those complex domestic and international interactions have shaped the world economy for the past 75 years. 2 The historical setting The negotiators at Bretton Woods could look back on recent history to help guide their efforts. -
Inflation Targeting—Central Bank Practice Overseas
No. 08‐1 Inflation Targeting—Central Bank Practice Overseas Jane Sneddon Little and Teresa Foy Romano Abstract: This policy brief, which is based on an internal memo, summarizes the institutional and operational features observed in the 27 countries that have gained experience with inflation targeting (IT). It finds considerable convergence in many IT practices across countries over the past 10 to 15 years but much variation in policymakers’ choices concerning such key issues as how they treat the borders of the target range. On the whole, most IT banks have chosen to practice inflation targeting in a more flexible and, thus, resilient fashion than many analysts once feared—seemingly without much loss of credibility. Currently, however, after a prolonged period of rapidly rising commodity and asset prices, followed by a period of sharp oil and asset price declines, IT is clearly facing the greatest challenges in its short history of relatively widespread use. Fortunately, one key lesson that emerges from our experience to date is that much of the ability of inflation targeting to help moor inflation expectations likely stems from the premium it places on improving transparency standards. These standards are available to all central banks, whether they choose to practice inflation targeting or not. Jane Sneddon Little is a vice president at the Federal Reserve Bank of Boston. Her email address is [email protected]. Teresa Foy Romano is a graduate student at Duke University; at the time this brief was written, she was a policy analyst at the Federal Reserve Bank of Boston. This brief, which may be revised, is available on the web site of the Federal Reserve Bank of Boston at http://www.bos.frb.org/economic/ppb/index.htm. -
INFLATION TARGETING and ITS EFFECTS on MACROECONOMIC PERFORMANCE by Thórarinn G
INFLATION TARGETING AND ITS EFFECTS ON MACROECONOMIC PERFORMANCE by Thórarinn G. Pétursson SUERF – The European Money and Finance Forum Vienna 2005 CIP INFLATION TARGETING AND ITS EFFECTS ON MACROECONOMIC PERFORMANCE By Thórarinn G. Pétursson Vienna: SUERF (SUERF Studies: 2005/5) ISBN 3-902109-30-0 Keywords: inflation targeting; monetary policy JEL Classification Numbers: E42; E52; E58 © 2005 SUERF, Vienna Copyright reserved. Subject to the exception provided for by law, no part of this publication may be reproduced and/or published in print, by photocopying, on microfilm or in any other way without the written consent of the copyright holder(s); the same applies to whole or partial adaptations. The publisher retains the sole right to collect from third parties fees payable in respect of copying and/or take legal or other action for this purpose. INFLATION TARGETING AND ITS EFFECTS ON MACROECONOMIC PERFORMANCE Thórarinn G. Pétursson1 Deputy Chief Economist and Chief of Research Division Central Bank of Iceland and Reykjavík University Contact Details: Central Bank of Iceland Kalkofnsvegur 1 IS-150 Reykjavík ICELAND Tel: +354 569 9687 Fax: +354 569 9608 e-mail: [email protected] Abstract An increasing number of countries have adopted inflation targeting since New Zealand first adopted this framework in early 1990. Currently there are 21 countries using inflation targeting in every continent of the world. This paper discusses the characteristics of these countries and how the adoption of inflation targeting has affected their economic performance along several dimensions. The main conclusion is that inflation targeting has largely been a success. The new framework has made central banks, which previously lacked credibility, able to change the way they do monetary policy towards what is commonly considered best practice. -
History of the International Economy: the Bretton Woods System and Its Impact on the Economic Development of Developing Countries
Athens Journal of Law - Volume 4, Issue 2 – Pages 105-126 History of the International Economy: The Bretton Woods System and its Impact on the Economic Development of Developing Countries By Isaac O.C. Igwe The Bretton Woods conference held in July 1944 resulted in the creation of the World Bank (WB), the International Monetary Fund (IMF), and International Trade Organisation (ITO). It was primarily formed, in the words of John Maynard Keynes, to seek “a common measure, a common standard, a common rule applicable to each and not irksome to any.” This article will examine this assertion in the light of Bretton Woods’s system as a shift from the implied conventional-based economic cooperation of global states, to a rule-based multilateral economic cooperation of global communities. Keywords: International Economy; Bretton woods; World Bank; IMF; ITO; Economic Development; Multilateral; Economic cooperation; Global Community; Developing Countries. Introduction The Bretton Woods conference of July 1944 set up the World Bank, International Trade Organisation (ITO), the International Monetary Fund (IMF) and post-war monetary arrangements by which the US dollar took the place of gold as the medium of international exchange. It may be seen that the primary function of the United States after World War II was establishing and maintaining the rules and instructions of a „liberal‟ world economy.1 The pre-1914 gold system worked but emphasised the elements of the crisis that was brewing within the system during the 25 years before the outbreak of World War I via an increasing damaging collapse to its destruction in 1914. -
The Inability of the Bretton Woods Monetary System and the British Search for a New International Economic Framework in the 1950'S
Working Paper Series E-2012-01 The inability of the Bretton Woods monetary system and the British Search for a new international economic framework in the 1950's Mei Kudo (Institute of International and Cultural Studies, Tsuda College) ©2012 Mei Kudo. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit is given to the source. 1 The inability of the Bretton Woods monetary system and the British Search for a new international economic framework in the 1950’s1 Mei Kudo (Institute of International and Cultural Studies, Tsuda College) Summary How is the reality of the Bretton Woods system and “embedded liberalism” ideology immediately after the Second World War II? What is the meaning of European integration in relation to the international economic regime? To approach these questions, this paper, taking the two UK proposals of floating rate and sterling convertibility – “Operation Robot” and “Collective Approach” – , argues, because of the ineffectiveness of both Keynesian policy and the IMF, in the 1950’s, some of the UK policy-makers try to apply more market-oriented policy to resolve balance of payments crisis, but rejected by those who thought market solution expose the welfare state in danger. This paper also analyses reaction from the continental Europeans. Although they too recognized the limit of the IMF, and Marjolin was even looking for new Atlantic framework, their idea was not corresponded to the “Collective Approach”. What they want was the convertibility through existing EPU framework, which is more reliable and effective than the IMF. -
Inflation Targeting and the Global Financial Crisis: Successes and Challenges
Inflation Targeting and the Global Financial Crisis: Successes and Challenges John C. Williams Federal Reserve Bank of San Francisco Prepared for the South African Reserve Bank “Conference on Fourteen Years of Inflation Targeting in South Africa and the Challenge of a Changing Mandate” October 30–31, 2014 Abstract Inflation targeting has become the predominant monetary approach across the globe. In a very real sense, “we are all inflation targeters now.” Before, during, and after the financial crisis, nearly all central banks following an inflation-targeting approach—whether explicit or implicit— have been highly successful at achieving price stability and anchoring inflation expectations. Recent events, however, highlighted two critical issues for inflation targeting going forward: the constraint of the zero lower bound on nominal interest rates and the appropriate role of monetary policy in supporting financial stability. This has led to the development of alternative approaches to inflation targeting that offer, in theory, potential advantages with respect to the zero lower bound and financial stability. Ben Pyle supplied excellent research assistance. The views expressed in this paper are the author’s and do not necessarily reflect those of others in the Federal Reserve System. Email contact information: [email protected] 1 Twenty-five years ago the Reserve Bank of New Zealand bravely embarked on a new framework for monetary policy: Inflation Targeting. Today, some 20 central banks— representing economies from small to large, emerging markets to advanced—practice some version of inflation targeting.1 Approaches differ in the details, but it is striking how similar inflation-targeting practice is across a diverse set of countries with distinct economic and institutional landscapes. -
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..0~~zanen/e ck h ~~,{~.f~ c/Yzan (z£~~ck/'~ N°: 49/1 19-18 27 February 2009 Sir I am writing with regard to your organization of the event entitled "The Global Financial and Economic Crisis: What Impact on Multilateralism at UNESCO?", to be held on 2 March 2009. I wish to bring to your attention the following reasons for and impacts of the current financial and economic crisis, as well as proposed solutions to it, for your consideration in connection to the above-mentioned meeting. First of all, the current crisis is the result of the bankruptcy of the investment and insurance banks and establishments, and high interest rates resulting in speculation and the fluctuation of currency, which led to the poor becoming poorer and the rich becoming richer. I see the underlying reasons for the crisis to be the undemocratic, non-participatory and non homogenous management of the economic and financial system. The Bretton Woods institutions are incapable offulfilling their functions, and thus we need fundamental reform of the management and arrangement that arose from the Bretton Woods system. Secondly, the impacts ofthe crisis are as follows: • the reduction ofconfidence in the international banking system; • the flight ofdirect foreign investment in developing countries; • the serious decrease in price of primary materials produced in developing countries, and thus diminished exportation of goods from developing countries to international markets; • the vulnerability of private banks and small financial establishments in developing countries; • the fluctuation of the exchange rate, and especially the change in value of the currencies of developing countries due to unstable exchange rates as a result of speculation; • the high risk ofcredit and endangered standards for providing credit; • increasing unemployment and inflation, reduced purchasing power and the incapability ofcitizens to earn their living and provide for their needs. -
Issues in Inflation Targeting 205
Issues in Inflation Targeting Frederic S. Mishkin* Introduction The 1990s have seen a growing number of countries adopt a new approach to the conduct of monetary policy: inflation targeting. Canada was one of the first, formally embarking on this approach in February 1991. It has been very successful in the countries that have adopted it, producing low and stable inflation without lowering output growth (and arguably, helping to increase economic growth). Despite its successes, debates continue over the best way to implement inflation targeting. This paper will attempt to con- tribute to these debates—many of which are the focus of other papers in this conference—by discussing five outstanding questions about the operational design of inflation-targeting regimes: • Which is better, a price-level target or an inflation target? • What should be the numerical value for the inflation target in the long run? • What should be the horizon for the inflation target? • Should the target be a point target or have a range? • What role should the exchange rate play in an inflation target? Answers to these questions are not only relevant to the Bank of Canada and other inflation-targeting central banks in industrialized coun- tries, but are also pertinent to central banks in emerging-market countries that are increasingly adopting this approach. * I thank Goetz von Peter for research assistance and comments. 203 204 Mishkin 1 Price Level or Inflation Target? At present, all countries that have adopted inflation targeting have chosen to target inflation rather than the price level. Nevertheless, which of these two targets would result in better economic performance is still an open question. -
Epilogue: Three Perspectives on the Bretton Woods System
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: A Retrospective on the Bretton Woods System: Lessons for International Monetary Reform Volume Author/Editor: Michael D. Bordo and Barry Eichengreen, editors Volume Publisher: University of Chicago Press Volume ISBN: 0-226-06587-1 Volume URL: http://www.nber.org/books/bord93-1 Conference Date: October 3-6, 1991 Publication Date: January 1993 Chapter Title: Epilogue: Three Perspectives on the Bretton Woods System Chapter Author: Barry Eichengreen Chapter URL: http://www.nber.org/chapters/c6883 Chapter pages in book: (p. 621 - 658) 14 Epilogue: Three Perspectives on the Bretton Woods System Barry Eichengreen Historians following too close on the heels of events, it is said, risk getting kicked in the teeth. Twenty years since the collapse of the Bretton Woods system is sufficient distance, one hopes, to assess the operation of the post- World War 11 exchange rate regime safely. This chapter approaches the history and historiography of Bretton Woods from three perspectives. First, I ask how the questions posed today about the operation of Bretton Woods differ from those asked twenty years ago. Second, I explore how today’s answers to fa- miliar questions differ from the answers offered in the past. Third, I examine the implications of the Bretton Woods experience for international monetary reform. In doing so, I summarize the contributions of the NBER conference papers collected in this volume. 14.1 The Questions In the 1960s and 1970s, most of the literature on the Bretton Woods system was organized around the “holy trinity” of adjustment, liquidity, and confi- dence.’ As Obstfeld (chap.