国际金融学exchangerateeconomics课件(编辑修改稿)

国际金融学exchangerateeconomics课件(编辑修改稿)内容摘要：

n the contract. Interest Arbitrage . Suppose the deposit interest rate in London is 8% annually, and 10% in New York. This simply means there is an interest spread of 2% and a potential profit when transferring funds from London to New York. Is it the case? Suppose again, a British has 163。 100 million, and he or she deposits the money in a bank running its businesses in London. Foreign Exchange Transactions 32 A year later, the British will receive an ine of about 163。 108 million (=100+1008%) . Assume the spot rate of the pound against the dollar is 163。 1=US$2. Then the British sells the pound for the . $ and deposits the US$200 million in a bank in New York. A year later, he or she will receive US$220 million. If the exchange rate of the pound to the US dollar does not change, surely, he or she will have an extra ine of 163。 2 million. But if the exchange rate changes, and he or she does not know exactly what it will be a year later, what can the British do? Foreign Exchange Transactions 33 Exchange Rate Regimes I. The International Moary System Definition The International Moary System refers to the framework of rules, regulations and conventions that govern the financial relations between countries (Moosa, 2020, pp. 142). Components Public ponent: including government agreements and the functions of international public institutions. Private ponent: including the banking system and finance industry. 34 Exchange Rate Regimes Classification of The International Moary System The exchange rate regime The nature of international reserves: a pure modity standard, a pure fiat standard, and a mixed standard. Evolution of International Moary System N ot e : T he i nt e r w a r pe r i od i s gr oup e d i nt o t hr e e s ub pe r i ods , na m e l y , f l oa t i ng ( 191 8 192 6) or t he d i s m a l p e r i od ( 191 9 1925) , g ol d e xc ha nge s t a nda r d ( 192 5/ 27 193 1/ 36) , a nd m one t a r y n a t i ona l i s m ( 193 6 1946) . 1870 t i m e G ol d S t a nda r d 191 4 1945 I nt e r w a r pe r i od 1973 B r e t t on W ood s s ys t e m P os t B r e t t on W ood s pe r i od For more detailed information on the topic, see Moosa (2020) and Krugman and Obstfeld (2020), etc,. 35 Exchange Rate Regimes II. Exchange Rate Regime What Is The Exchange Rate Regime? The Exchange Rate Regime is the way a country manages its currency in respect to foreign currencies and the foreign exchange market. The Classification Schedule of the IMF Since 1997, the IMF changed the classification schedules previous adopted by taking what countries say and what they do into account. The new scheme classifies the exchange rate regimes into 8 types. See Table 213. 36 Table 213 The IMF Classification Source: IMF. 1999.1 .1 0 0. 12. 31 01 .12. 31 03 .1 03 .6 .30 03 .12. 31 04 .6 .30 04 .12. 31 05 .6 .30 05 .12. 31 06. 7 .31 08 .4 .31 F i x e d E x c h a n g e R a t e R e g i m e 1st t y p e 37 38 40 41 41 41 41 41 41 41 41 10 2nd t y p e 8 8 8 7 7 7 7 7 7 7 7 13 T o t a l 45 46 48 48 48 48 48 48 48 48 48 23 In t e r m e d i a t e E x c h a n g e R a t e R e g i m e 3rd t y p e 39 44 40 42 43 41 42 41 44 45 52 68 4th t y p e 12 7 5 5 4 4 5 5 6 6 6 3 5th t y p e 6 5 4 5 5 5 8 6 5 8 5 8 6th t y p e 10 6 6 5 5 5 2 1 n . a . n . a . n . a . 2 7th t y p e 26 32 43 46 47 50 48 51 54 53 51 44 T o t a l 93 94 98 103 104 105 105 104 109 1 1 2 1 1 4 125 F l o a t i n g E x c h a n g e R a t e R e g i m e 8th t y p e 47 46 40 36 35 34 36 35 30 30 25 40 37 Exchange arrangements with no separate legal tender The currency of another country circulates as the sole tender (formal dollarization or Euroization), or the member belongs to currency union in which the same legal tender is shared by the members of the union (Moary Union). Adopting such regimes implies the plete surrender of the moary authorities’ independent control over domestic moary policy. This type of regimes include dollarization (or Euroization) and moary union. Exchange Rate Regimes 38 Currency board arrangements A moary regime based on an explicit legislative mitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate, bined with restrictions on the issuing authority to ensure the fulfillment of its legal obligation. This implies that domestic currency will be issued only against foreign exchange and that it remains fully backed by foreign assets, eliminating traditional central bank functions, such as moary control and lender of last resort, and leaving little scope for discretionary moary policy. Exchange Rate Regimes 39 Conventional fixed peg arrangements The country (formally or de facto) pegs its currency at a fixed rate to another currency or a basket of the currencies of major trading or financial partners, weighted to reflect the geographical distribution of trade, services, or capital flows. The exchange rate may fluctuate within narrow margins of less than 1 percent around a central rate, or the maximum and minimum values of the exchange rate may remain within a narrow margin of 2 percent for at least three months. The moary authority stands ready to maintain the fixed parity through direct intervention (sales or purchases of foreign exchange) or indirect intervention (such as aggressive use of interest rate policy). Exchange Rate Regimes 40 Pegged exchange rates within horizontal bands。