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Twenty-five years of post-Bretton Woods experience: some lessons

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  • H. ASKARI

    (The George Washington University)

Abstract

In 1971 many academic economists were predicting that the Bretton Woods system of fixed parities would collapse. Some, most notably Milton Friedman, became excited about the possibility of a floating system because the benefits of international capital mobility can only be achieved through the flexibility in the exchange rate. These economists argued that a floating exchange rate system can ensure positive results more than the fixed parities system. Twenty-five years later, however, there is still no consensus on the matter. The author reviews the post-Bretton Woods experience to highlight some policies and approaches that might be helpful for the future.

Suggested Citation

  • H. Askari, 1999. "Twenty-five years of post-Bretton Woods experience: some lessons," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 52(208), pages 3-38.
    • Handle: RePEc:psl:bnlaqr:1999:11
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    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/10620/10504
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    References listed on IDEAS

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    1. Frankel, Jeffrey A., 1988. "Obstacles to International Macroeconomic Policy Coordination," Journal of Public Policy, Cambridge University Press, vol. 8(3-4), pages 353-374, July.
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    4. Rudiger Dornbusch & Jeffrey Frankel, 1988. "The Flexible Exchange Rate System: Experience and Alternatives," International Economic Association Series, in: Silvio Borner (ed.), International Finance and Trade in a Polycentric World, chapter 7, pages 151-208, Palgrave Macmillan.
    5. Edwards, Sebastian, 1996. "Exchange-Rate Anchors, Credibility, and Inertia: A Tale of Two Crises, Chile and Mexico," American Economic Review, American Economic Association, vol. 86(2), pages 176-180, May.
    6. Dornbusch, Rudiger, 1986. "Special Exchange Rates for Capital Account Transactions," The World Bank Economic Review, World Bank, vol. 1(1), pages 3-33, September.
    7. Robert Amano & Paul Fenton & David Tessier & Simon van Norden, 1996. "The credibility of monetary policy: a survey of the literature with some simple applications to Caanda," Meeting papers 9610001, University Library of Munich, Germany.
    8. Rudger Dornbusch & Ilan Goldfajn & Rodrigo O. Valdés, 1995. "Currency Crises and Collapses," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(2), pages 219-294.
    9. Sebastian Edwards, 1996. "A Tale of Two Crises: Chile and Mexico," NBER Working Papers 5794, National Bureau of Economic Research, Inc.
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    Cited by:

    1. E. Grilli, 1999. "Some considerations on the reform of the international monetary and financial system," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 52(209), pages 195-237.
    2. E. Grilli, 1999. "Some considerations on the reform of the international monetary and financial system," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 52(209), pages 195-237.
    3. Robert Aliber, 2000. "Capital Flows, Exchange Rates, and the New International Financial Architecture: Six Financial Crises in Search of a Generic Explanation," Open Economies Review, Springer, vol. 11(1), pages 43-61, August.

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    More about this item

    Keywords

    Foreign Currency Management; Analysis; Economic aspects; Foreign exchange; Foreign exchange market;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F00 - International Economics - - General - - - General

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