Facoltà di scienze economiche

What future for the international and the European monetary systems?

Cencini, Alvaro

The process of globalization affecting goods and financial markets together with the increase in capital mobility have led economists to reconsider the problem of exchange rates. The aim of this paper is to consider the ‘soft’ peg and the ‘hard’ peg exchange rates solutions in order to show: 1. that each of them entails serious drawbacks for the countries implementing it; and 2. that... Plus

Ajouter à la liste personnelle
    Summary
    The process of globalization affecting goods and financial markets together with the increase in capital mobility have led economists to reconsider the problem of exchange rates. The aim of this paper is to consider the ‘soft’ peg and the ‘hard’ peg exchange rates solutions in order to show: 1. that each of them entails serious drawbacks for the countries implementing it; and 2. that the same desired result – exchange rate stability – may be reached by means of an alternative solution that preserves monetary sovereignty and does not require any intervention on the foreign exchange market. Countries should not be forced to choose between fixed or flexible exchange rates, but between the present structure of international payments and a reformed system ensuring exchange rate stability.