Misalignment of exchange rates : effects on trade and industry / edited by Richard C. Marston.

Format:

Book

Contributor:

Marston, Richard C.

National Bureau of Economic Research.

Series:

National Bureau of Economic Research project report.

National Bureau of Economic Research project report

Language:

English

Subjects (All):

Foreign exchange--Congresses.

Foreign exchange.

Physical Description:

1 online resource (332 pages) : illustrations

Edition:

1st ed.

Place of Publication:

Chicago : University of Chicago Press, 1988.

Language Note:

English

Summary:

Economists writing on flexible exchange rates in the 1960's foresaw neither the magnitude nor the persistence of the changes in real exchange rates that have occurred in the last fifteen years. Unexpectedly large movements in relative prices have lead to sharp changes in exports and imports, disrupting normal trading relations and causing shifts in employment and output. Many of the largest changes are not equilibrium adjustments to real disturbances but represent instead sustained departures from long-run equilibrium levels, with real exchange rates remaining "misaligned" for years at a time. Contributors to Misalignment of Exchange Rates address a series of questions about misalignment. Several papers investigate the causes of misalignment and the extent to which observed movements in real exchange rates can be attributed to misalignment. These studies are conducted both empirically, through the experiences of the United States, Great Britain, Japan, and the countries of the European Monetary System, and theoretically, through models of imperfect competition. Attention is then turned to the effects of misalignment, especially on employment and production, and to detailed estimates of the effects of changes in exchange rates on several industries, including the U.S. auto industry. In response to the contention that there is significant "hysteresis" in the adjustment of employment and production to changes in exchange rates, contributors also attempt to determine whether the effects of misalignment can be reversed once exchange rates return to earlier levels. Finally, the issue of how to avoid-or at least control-misalignment through macroeconomic policy is confronted.

Contents:

Front matter

Contents

Preface

Introduction

1. Sources of Misalignment in the 1980's

2. Sterling Misalignment and British Trade Performance

3. Exchange Rate Variability, Misalignment, and the European Monetary System

4. Realignment of the Yen-Dollar Exchange Rate: Aspects of the Adjustment Process in Japan

5. Roundtable on Exchange Rate Policy

6. Monopolistic Competition and Labor Market Adjustment in the Open Economy

7. On the Effectiveness of Discrete Devaluation in Balance of Payments Adjustment

8. Exchange Rates and U.S. Auto Competitiveness

9. U.S. Manufacturing and the Real Exchange Rate

10. Long-Run Effects of the Strong Dollar

11. New Directions for Research

Contributors

Name Index

Subject Index

Notes:

"Proceedings of a conference ... sponsored by the National Bureau of Economic Research and held in Cambridge, Massachusetts, on 7-8 May, 1987"--Pref.

Includes bibliographies and indexes.

ISBN:

9786611431037

9781281431035

1281431036

9780226507255

0226507254

OCLC:

476228734