Why markets in foreign exchange are different from other markets
AbstractThis paper, originally published in the fall 1979 Quarterly Review, explains why unfettered markets cannot determine a price at which the currency of one country exchanges for that of another. In effect, any price will work--something which is not true in other markets. The paper then argues that the only feasible regimes for these special markets are floating exchange rates with capital controls or fixed exchange rates with monetary and budget policy coordination. ; Originally published in Quarterly Review, Fall 1979.
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Bibliographic InfoArticle provided by Federal Reserve Bank of Minneapolis in its journal Quarterly Review.
Volume (Year): (1990)
Issue (Month): Win ()
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- anonymous, 1978. "Does the sinking U.S. dollar mean the float isn't working?," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Sum.
- Kareken, John & Wallace, Neil, 1977. "Portfolio autarky: A welfare analysis," Journal of International Economics, Elsevier, vol. 7(1), pages 19-43, February.
- Gale, David, 1971. "General equilibrium with imbalance of trade," Journal of International Economics, Elsevier, vol. 1(2), pages 141-158, May.
- John H. Kareken & Neil Wallace, 1978. "International monetary reform: the feasible alternatives," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Sum.
- P. Gray, 1996. "The ongoing weakening of the international financial system," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 49(197), pages 165-186.
- P. Gray, 1996. "The ongoing weakening of the international financial system," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 49(197), pages 165-186.
- Sangdai Ryoo, 2002. "Testing for Sunspot in the Foreign Exchange Market," International Economic Journal, Taylor & Francis Journals, vol. 16(3), pages 39-58.
- S. Elwood & Ehsan Ahmed & J. Rosser, 1999. "State-space estimation of rational bubbles in the Yen/Deutsche Mark exchange rate," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(2), pages 317-331, June.
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