chapter6 Government policies toward the foreign exchang market.pptVIP免费

HuangzhiyongHuangzhiyongNanjingUniversityofFinance&Economicshzy196896@sina.comTel：84028241ChapterSIXChapterSIX：：GovernmentPoliciesGovernmentPoliciestowardtheForeignExchangeMarkettowardtheForeignExchangeMarketThisChapterfirstpresentstheFloatingThisChapterfirstpresentstheFloatingexchangerateandFixedexchangerate.exchangerateandFixedexchangerate.ThendiscusstheDefensethroughofficialThendiscusstheDefensethroughofficialintervention.Thelastsectionexplainsintervention.ThelastsectionexplainsExchangecontrolandInternationalExchangecontrolandInternationalCurrencyExperience.CurrencyExperience.GovernmentPoliciesTowardtheForeignExchangeMarketTwoAspects:•thechoicebetweenafloatingexchangerateandafixedexchangerate.•Restrictionsorexchangecontrols.一、Floatingexchangerate•Acleanfloat:Ifgovernmentpolicyletsthemarketdeterminetheexchangerate,therateisfreetogowhereverthemarketequilibriumisatthattime.•Amanagedfloatoradirtyfloat:thegovernmentoftentriestohaveadirectimpactontheratethroughofficialintervention.二、FixedexchangerateWhattofixto?•Gold•U.S.dollaroranyothersinglecurrency•ABasketofforeigncurrencies–Thespecialdrawingright(SDR)–OrcreateitsownbasketWhentochangethefixedrate?•Never(notcredible)：apolarcase•Seldom(adjustablepeg)•Often(crawlingpeg)Howtodefendthefixedrate?•InterventionintheFXmarket•Exchangecontrol•Alterdomesticinterestrates•Macroeconomicadjustment•Orsurrenderratherthandefend三、Defensethroughofficialintervention1.DefendingagainstdepreciationForinstance,aLatinAmericancountryisattemptingtomaintainafixedrateof25pesosperdollar,withaBandofplusorminus4percent.NonofficialsupplyanddemandareattemptingtopushTheexchangerateto28pesosperdollar,theintersectionWherethemarketwouldclearonitsown.Figure6.1InterventiontoPreventDepreciation•Thisresultsinanofficialsettlementsbalancedeficit.•Throughinterventionthemonetaryauthorityisfinancingthecountry’sdeficitinitsofficialsettlementbalance.•Theauthorityeitherusesitsownofficialinternationalreserveassetstoobtaindollars...