Reform of the International Monetary System

Why and How?

Business & Finance, Economics, Money & Monetary Policy
Cover of the book Reform of the International Monetary System by John B. Taylor, The MIT Press
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: John B. Taylor ISBN: 9780262352680
Publisher: The MIT Press Publication: March 15, 2019
Imprint: The MIT Press Language: English
Author: John B. Taylor
ISBN: 9780262352680
Publisher: The MIT Press
Publication: March 15, 2019
Imprint: The MIT Press
Language: English

An argument that a rules-based reform of the international monetary system, achieved by applying basic economic theory, would improve economic performance.

In this book, the economist John Taylor argues that the apparent correlation of monetary policy decisions among different countries—largely the result of countries' concerns about the exchange rate—causes monetary policy to deviate from effective policies that stabilize inflation and the economy. He argues that a rules-based reform of the international monetary system, achieved by applying basic economic theory, would improve economic performance.

Taylor shows that monetary polices in recent years have been deployed either defensively, as central banks counteract forces from abroad that affect the exchange rate, or offensively, as central banks attempt to move the exchange rate to gain a competitive advantage. Focusing on the years from 2005 to 2017, he develops an empirical framework to examine two monetary policy instruments: the policy interest rate (the more conventional of the two) and the size of the balance sheet. He finds that an international contagion in central bank decisions about the policy interest rate has accentuated the deviation from standard interest rate rules that have worked in the past. He finds a similar contagion in decisions about the size of the balance sheet. By considering a counterfactual policy in the estimated model, Taylor is able to estimate by how much the policy of recent years has increased exchange rate volatility. After several rounds of monetary actions and reactions aimed at exchange rates, Taylor finds, the international monetary system is left with roughly the same interest rate configuration, but much larger balance sheets to unwind.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

An argument that a rules-based reform of the international monetary system, achieved by applying basic economic theory, would improve economic performance.

In this book, the economist John Taylor argues that the apparent correlation of monetary policy decisions among different countries—largely the result of countries' concerns about the exchange rate—causes monetary policy to deviate from effective policies that stabilize inflation and the economy. He argues that a rules-based reform of the international monetary system, achieved by applying basic economic theory, would improve economic performance.

Taylor shows that monetary polices in recent years have been deployed either defensively, as central banks counteract forces from abroad that affect the exchange rate, or offensively, as central banks attempt to move the exchange rate to gain a competitive advantage. Focusing on the years from 2005 to 2017, he develops an empirical framework to examine two monetary policy instruments: the policy interest rate (the more conventional of the two) and the size of the balance sheet. He finds that an international contagion in central bank decisions about the policy interest rate has accentuated the deviation from standard interest rate rules that have worked in the past. He finds a similar contagion in decisions about the size of the balance sheet. By considering a counterfactual policy in the estimated model, Taylor is able to estimate by how much the policy of recent years has increased exchange rate volatility. After several rounds of monetary actions and reactions aimed at exchange rates, Taylor finds, the international monetary system is left with roughly the same interest rate configuration, but much larger balance sheets to unwind.

More books from The MIT Press

Cover of the book The Vestigial Heart by John B. Taylor
Cover of the book Privacy on the Ground by John B. Taylor
Cover of the book The Myth of the Moral Brain by John B. Taylor
Cover of the book Machine Art in the Twentieth Century by John B. Taylor
Cover of the book Lessons from the Lobster by John B. Taylor
Cover of the book Robotics Through Science Fiction by John B. Taylor
Cover of the book A Play of Bodies by John B. Taylor
Cover of the book Climate Change by John B. Taylor
Cover of the book Out of the Shadows, Into the Streets! by John B. Taylor
Cover of the book Technology Matters by John B. Taylor
Cover of the book Environmental Governance Reconsidered by John B. Taylor
Cover of the book Fred Forest's Utopia by John B. Taylor
Cover of the book Broken Movement by John B. Taylor
Cover of the book The Hidden Sense by John B. Taylor
Cover of the book Power Lines by John B. Taylor
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy