IDEAS home Printed from https://ideas.repec.org/a/kap/atlecj/v45y2017i4d10.1007_s11293-017-9559-1.html
   My bibliography  Save this article

International Monetary Instability All Over Again

Author

Listed:
  • Robert Z. Aliber

    (University of Chicago)

Abstract

One of the signature developments of 2016 was the move from globalization and market integration toward nationalism and protection. A headline in the Financial Times (April 13, 2017) read, “‘Sword of protectionism hangs over trade’, says IMF.” The headline demonstrates “Silo-ism”. The Fund does not recognize that the demand for import barriers in countries with large trade deficits and high unemployment have resulted from massive imbalances in international payments. Monetary instability in the 1920s and the 1930s was reflected in the overvaluation of the British pound, the undervaluation of the French franc and subsequent overvaluation of the U.S. dollar. Britain voted to leave the European Union in June 2016, in part because the high price of the British pound depressed exports and wages in manufacturing. U.S. gross domestic product (GDP) has doubled since 1980, yet manufacturing employment has declined by eight million. The demand for protection in the U.S. has increased because the more rapid growth of imports than exports has led to the decline of three to four million U.S. manufacturing jobs.

Suggested Citation

  • Robert Z. Aliber, 2017. "International Monetary Instability All Over Again," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(4), pages 399-409, December.
  • Handle: RePEc:kap:atlecj:v:45:y:2017:i:4:d:10.1007_s11293-017-9559-1
    DOI: 10.1007/s11293-017-9559-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11293-017-9559-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11293-017-9559-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dornbusch, Rudiger, 1976. "Exchange rate expectations and monetary policy," Journal of International Economics, Elsevier, vol. 6(3), pages 231-244, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tanya Molodtsova & Alex Nikolsko-Rzhevskyy & David H. Papell, 2011. "Taylor Rules and the Euro," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43, pages 535-552, March.
    2. Svitlana Galeshchuk, 2017. "Technological bias at the exchange rate market," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 24(2-3), pages 80-86, April.
    3. Narayan, Seema, 2013. "A structural VAR model of the Fiji Islands," Economic Modelling, Elsevier, vol. 31(C), pages 238-244.
    4. Pierdzioch, Christian, 2005. "Noise trading and delayed exchange rate overshooting," Journal of Economic Behavior & Organization, Elsevier, vol. 58(1), pages 133-156, September.
    5. Michael P. Dooley & Peter Isard, 1979. "The portfolio-balance model of exchange rates," International Finance Discussion Papers 141, Board of Governors of the Federal Reserve System (U.S.).
    6. Svitlana Galeshchuk & Sumitra Mukherjee, 2017. "Deep networks for predicting direction of change in foreign exchange rates," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 24(4), pages 100-110, October.
    7. William Marois, 1981. "Les interactions entre les mouvements de capitaux et la politique monétaire en système de changes quasi fixes," Revue Économique, Programme National Persée, vol. 32(2), pages 374-404.
    8. Betty C. Daniel, 1977. "Inflation and unemployment in open economies," International Finance Discussion Papers 114, Board of Governors of the Federal Reserve System (U.S.).
    9. Voraprapa Nakavachara & Kanis Saengchote, 2022. "Is Metaverse LAND a good investment? It depends on your unit of account!," Papers 2202.03081, arXiv.org.
    10. Martínez-García, Enrique & Søndergaard, Jens, 2013. "Investment And Real Exchange Rates In Sticky Price Models," Macroeconomic Dynamics, Cambridge University Press, vol. 17(2), pages 195-234, March.
    11. Nusrate Aziz & Arusha Cooray & Wing Leong Teo, 2021. "Do immigrants’ funds affect the exchange rate?," The World Economy, Wiley Blackwell, vol. 44(2), pages 560-585, February.
    12. Wei Sun, 2006. "Why Do Floating Exchange Rates Float? Evidence From Capital Flows in a Structural VAR Model," EcoMod2006 272100092, EcoMod.
    13. Thomas Plümper & Vera E. Troeger, 2006. "Fear of Floating and the External Effects of Currency Unions," The Institute for International Integration Studies Discussion Paper Series iiisdp181, IIIS.
    14. Éric Girardin & Velayoudom Marimoutou, 1997. "Les fondamentaux permettent-ils d'améliorer la prévision du taux de change franc-dollar ?," Revue Économique, Programme National Persée, vol. 48(3), pages 661-672.
    15. Bhatta, Guna Raj & Nepal, Rabindra & Harvie, Charles & Jayanthakumaran, Kankesu, 2022. "Testing for the uncovered interest parity condition in a small open economy: A state space modelling approach," Journal of Asian Economics, Elsevier, vol. 82(C).
    16. Klose, Jens, 2023. "European exchange rate adjustments in response to COVID-19, containment measures and stabilization policies," Economic Modelling, Elsevier, vol. 128(C).
    17. Pierre Lesuisse, 2019. "External Monetary Shocks to Central and Eastern European Countries," Working Papers halshs-01467330, HAL.
    18. Yijian He & Subhash Sharma, 1997. "Currency substitution and exchange rate determination," Applied Financial Economics, Taylor & Francis Journals, vol. 7(4), pages 327-336.
    19. Pierre LESUISSE, 2017. "External Monetary Shocks to Central and Eastern European Countries," Working Papers 201705, CERDI.
    20. Reinhold Heinlein & Hans-Martin Krolzig, 2013. "Monetary Policy and Exchange Rates: A Balanced Two-Country Cointegrated VAR Model Approach," Studies in Economics 1321, School of Economics, University of Kent.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:atlecj:v:45:y:2017:i:4:d:10.1007_s11293-017-9559-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.