Citation
Discussion Paper Details
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Full Details
Title: The International Monetary System: An Analysis of Alternative Regimes
Author(s): Marcus Miller and John Williamson
Publication Date: July 1988
Keyword(s): Exchange Rates Systems, International Monetary Reform, International Monetary Regimes and Speculation
Programme Area(s): International Macroeconomics
Abstract: This is an exercise in the positive economics of alternative monetary regimes. The behaviour of output and prices is compared using a stochastic specification which allows asymptotic variances to be obtained without difficulty. Free floating of exchange rates together with national money supply targets is analysed first, with and without the presence of `fads' in the exchange rate. Two alternatives for monetary coordination are then considered. First, McKinnon's proposal to fix nominal exchange rates and stabilize aggregate monetary growth (or average inflation); second, Williamson's system of Target Zones for stable real exchange rates, complemented by nominal income targets for fiscal policy.
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Bibliographic Reference
Miller, M and Williamson, J. 1988. 'The International Monetary System: An Analysis of Alternative Regimes'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=266