Disequilibrium in the International Balance of Payments
Recent years have seen a problematic upward trend in disequilibrium in the international balance of payments. What accounts for this trend? Three hypotheses for the rise in disequilibrium are tested in this paper: greater fixedness of the world exchange rate regime causes greater disequilibrium; greater flexibility of the exchange rate regime causes greater disequilibrium; and a decline of United States economic hegemony causes greater disequilibrium. It is argued here that the problem was created by state choices, a lack of coordination among states in the international system, and the absence of an international exchange rate regime. The evidence presented in this paper supports the idea that a stable international exchange rate regime is critical to secure a healthy world economy.
Volume (Year): 18 (2012)
Issue (Month): 1 (May)
|Contact details of provider:|| Web page: https://www.degruyter.com|
|Order Information:||Web: https://www.degruyter.com/view/j/jeeh|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard N. Cooper, 2006. "Understanding global imbalances," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 51.
- Leo de Haan & Hubert Schokker & Anastassia Tcherneva, 2008.
"What Do Current Account Reversals in OECD Countries Tell Us About the US Case?,"
The World Economy,
Wiley Blackwell, vol. 31(2), pages 286-311, 02.
- Leo de Haan & Hubert Schokker & Anastassia Tcherneva, 2006. "What do current account reversals in OECD countries tell us about the US case?," DNB Working Papers 111, Netherlands Central Bank, Research Department.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2004. "The Modern History of Exchange Rate Arrangements: A Reinterpretation," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 1-48.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2002. "The Modern History of Exchange Rate Arrangements: A Reinterpretation," NBER Working Papers 8963, National Bureau of Economic Research, Inc.
- Reinhart, Carmen & Rogoff, Kenneth, 2004. "The modern history of exchange rate arrangements: A reinterpretation," MPRA Paper 14070, University Library of Munich, Germany.
- Michael D. Bordo & Harold James, 2000. "The International Monetary Fund: Its Present Role in Historical Perspective," NBER Working Papers 7724, National Bureau of Economic Research, Inc.
- Cohen, Benjamin J., 1982. "Balance-of-payments financing: evolution of a regime," International Organization, Cambridge University Press, vol. 36(02), pages 457-478, March.
- Thomas D. Willett, 2007. "Why the Middle is Unstable: The Political Economy of Exchange Rate Regimes and Currency Crises," The World Economy, Wiley Blackwell, vol. 30(5), pages 709-732, 05.
- Gould, Erica R., 2003. "Money Talks: Supplementary Financiers and International Monetary Fund Conditionality," International Organization, Cambridge University Press, vol. 57(03), pages 551-586, June.
- W. Max Corden, 2007. "Those Current Account Imbalances: A Sceptical View -super-1," The World Economy, Wiley Blackwell, vol. 30(3), pages 363-382, 03. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:bpj:jeehcn:v:18:y:2012:i:1:n:3. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla)
If references are entirely missing, you can add them using this form.