National and Global Choices: Floating Rates and the Alternatives

# 第25章 National and Global Choices: Floating Rates and the Alternatives

## 章节概览
National and Global Choices: Floating Rates and the Alternatives This chapter provides a capstone to the discussion of international finance and international macroeconomics by examining the choice between fixed and floating exchange rates. Much of the discussion examines this choice from the point of view of a single country, but the discussion also examines some issues related to the functioning of the entire system.

## 知识点
### 1. Key Issues in the Choice of Exchange-Rate Policy
- 教学说明：The text examines five key issues that can influence a country's choice. Figure 25.1 presents a summary of implications of the key issues for the advantages of each policy choice.
- 支撑要点：Exchange-Rate Policy
- 支撑要点：The effects of macroeconomic shocks
- 支撑要点：The effectiveness of government policies
- 来源类型：manual

### 2. National Choices
- 教学说明：National and Global Choices: Floating Rates and the Alternatives
- 支撑要点：National and Global Choices: Floating Rates and the Alternatives
- 来源类型：manual

### 3. Extreme Fixes
- 教学说明：If the only relevant national goal is to defend the fixed rate, then the currency board is probably better. Because the currency board holds no domestic-currency assets, the currency board cannot sterilize its foreign exchange intervention. The domestic money supply must change with the intervention, and the adjustments to eliminate the payments imbalance takes place.
- 支撑要点：currency board
- 支撑要点：attempts to establish a fixed exchange rate that is long-lived by mandating that the board, acting as the country’s monetary authority, should focus almost exclusively on maintaining the fixed rate.
- 来源类型：manual

### 4. The International Fix – Monetary Union
- 教学说明：The members of the European Union (EU) are pursuing an international fix—a monetary union in which exchange rates are permanently fixed among the currencies of the countries in the union and a single monetary authority conducts a unionwide monetary policy. As mentioned previously in Chapter 20, in 1979 the EU countries established the European Monetary System, and most became members of its Exchange Rate Mechanism (ERM), an adjustable pegged rate system among its members' currencies.
- 支撑要点：monetary union,
- 支撑要点：exchange rates are permanently fixed and a single monetary authority conducts a single, unionwide monetary policy.
- 支撑要点：In 1999, a subset of countries in the European Union implemented a monetary union with a single currency, the euro, and the European Central Bank as the monetary authority.
- 来源类型：manual

### 5. Effects of Macroeconomic Shocks
- 教学说明：Key gains from European Monetary Union are the elimination of exchange rate risk and the elimination of the transaction costs of exchanging currencies. Key risks include the loss of national use of exchange rate changes and monetary policy to address shortcomings in national economic performance. The ECB’s monetary policy can address union-wide macroeconomic performance shortcomings, as it did starting in 2015 when the ECB began an aggressive quantitative easing to address very low euro area inflation rates, slow real GDP growth, and high unemployment rates.
- 支撑要点：Exchange-Rate Policy
- 支撑要点：The effects of macroeconomic shocks
- 支撑要点：The effectiveness of government policies
- 来源类型：manual

### 6. The Effectiveness of Government Policies
- 教学说明：Each country must make its own decision about its exchange rate policy. Several of these key issues seem to be important for most countries. Strong arguments in favor of a country's choosing a floating exchange rate are the use of changes in the floating exchange rate to achieve external balance, so that monetary policy can be used to pursue domestic objectives, the ability to set its own goals and policies, and the reduced need to hold official international reserves to defend against speculative attacks on the fixed rate.
- 支撑要点：Exchange-Rate Policy
- 支撑要点：The effects of macroeconomic shocks
- 支撑要点：The effectiveness of government policies
- 来源类型：manual

### 7. Differences in Macroeconomic Goals, Priorities, and Policies
- 教学说明：Third, countries that have their currencies linked through fixed exchange rates must achieve consistency in their macroeconomic policies, so that the fixed rate can be defended and maintained. If countries have different goals, priorities, and policies, then they will favor floating exchange rates.
- 支撑要点：Exchange-Rate Policy
- 支撑要点：The effects of macroeconomic shocks
- 支撑要点：The effectiveness of government policies
- 来源类型：manual

## 案例
### 案例 1: The members of the European Union (EU) are pursuing an international ...
The members of the European Union (EU) are pursuing an international fix—a monetary union in which exchange rates are permanently fixed among the currencies of the countries in the union and a single monetary authority conducts a unionwide monetary policy. As mentioned previously in Chapter 20, in 1979 the EU countries established the European Monetary System, and most became members of its Exchange Rate Mechanism (ERM), an adjustable pegged rate system among its members' currencies.

### 案例 2: Fiscal policy has become a flash point for the euro area. ...
Fiscal policy has become a flash point for the euro area. In the absence of national monetary policy and national exchange rate policy, national fiscal policy should be valuable as the key tool for national macroeconomic stabilization. But national governments may sometimes run excessive fiscal deficits and build up excessive government debt.

### 案例 3: Key gains from European Monetary Union are the elimination of exchange ...
Key gains from European Monetary Union are the elimination of exchange rate risk and the elimination of the transaction costs of exchanging currencies. Key risks include the loss of national use of exchange rate changes and monetary policy to address shortcomings in national economic performance. The ECB’s monetary policy can address union-wide macroeconomic performance shortcomings, as it did starting in 2015 when the ECB began an aggressive quantitative easing to address very low euro area inflation rates, slow real GDP growth, and high unemployment rates.

### 案例 4: Given the importance of having and maintaining similar inflation rates f ...
Given the importance of having and maintaining similar inflation rates for the success of fixed exchange rates, the most important criterion is probably that related to the country's inflation rate. The criteria related to government budget deficits and debt seem to be more debatable. A country that shifts to completely fixed exchange rates has given up the ability to use national monetary policy and exchange rate changes in seeking to address imbalances.

## 习题
### 题目 1
Which of the following is most likely to happen if the demand for money decreases in the domestic economy under floating exchange rates and free capital mobility?
- A) The domestic interest rate will increase.
- B) Domestic borrowing will decline.
- C) The financial account of the country's balance of payments will deteriorate.
- D) The average price level in the domestic economy will decrease.

### 题目 2
Monetary policy is most effective in influencing aggregate demand
- A) under a freely floating exchange-rate system.
- B) under a fixed exchange-rate system with sterilization.
- C) under a fixed exchange-rate system without sterilization.
- D) when there is low capital mobility.

### 题目 3
Fiscal policy is most effective in influencing aggregate demand
- A) under a floating exchange-rate system with a low degree of capital mobility.
- B) under a fixed exchange-rate system with sterilization.
- C) under a fixed exchange-rate system without sterilization.
- D) under a floating exchange-rate system with a high degree of capital mobility.

### 题目 4
Those who advocate a return to a real gold standard believe that doing so would
- A) force countries to pursue sustainable fiscal policies.
- B) allow countries to earn a higher rate of  interest on their holdings of international reserve assets.
- C) reduce unemployment rates by allowing countries to have independent monetary policies.
- D) reduce inflation rates by imposing strong discipline on national monetary authorities.

### 题目 5
Under a gold standard, a major discovery of a new gold deposit would
- A) decrease the volume of world trade.
- B) increase the inflation rate.
- C) decrease output growth.
- D) increase private demand for gold.

### 题目 6
A domestic monetary shock is least disruptive
- A) under a floating exchange-rate system.
- B) under a fixed exchange-rate system with sterilization.
- C) under a fixed exchange-rate system without sterilization.
- D) under both fixed and floating exchange rates.

### 题目 7
The process of "demonetization of gold" involves
- A) the purchase of gold and supply of money into the market by the central banks to defend the fixed gold prices.
- B) a sudden fall in private demand for gold in a country due to discovery of a minable gold deposit.
- C) gold sales into the private market in recent decades by central banks and the International Monetary Fund (IMF).
- D) a sudden increase in the private demand for gold in a country, forcing its central bank to sell off gold.

### 题目 8
A domestic spending shock is likely to be least disruptive under a
- A) floating exchange-rate system when there is high capital mobility.
- B) fixed exchange-rate system when there is high capital mobility.
- C) fixed exchange-rate system without sterilization.
- D) floating exchange-rate system when there is low capital mobility.

## 参考答案
- 题目 1: 答案：C | 选项内容：The financial account of the country's balance of payments will deteriorate. | Topic：Key Issues in the Choice of Exchange-Rate Policy | Difficulty：2 Medium
- 题目 2: 答案：A | 选项内容：under a freely floating exchange-rate system. | Topic：Key Issues in the Choice of Exchange-Rate Policy | Difficulty：1 Easy
- 题目 3: 答案：A | 选项内容：under a floating exchange-rate system with a low degree of capital mobility. | Topic：Key Issues in the Choice of Exchange-Rate Policy | Difficulty：1 Easy
- 题目 4: 答案：D | 选项内容：reduce inflation rates by imposing strong discipline on national monetary authorities. | Topic：Key Issues in the Choice of Exchange-Rate Policy | Difficulty：1 Easy
- 题目 5: 答案：B | 选项内容：increase the inflation rate. | Topic：Key Issues in the Choice of Exchange-Rate Policy | Difficulty：1 Easy
- 题目 6: 答案：C | 选项内容：under a fixed exchange-rate system without sterilization. | Topic：Key Issues in the Choice of Exchange-Rate Policy | Difficulty：2 Medium
- 题目 7: 答案：C | 选项内容：gold sales into the private market in recent decades by central banks and the International Monetary Fund (IMF). | Topic：Key Issues in the Choice of Exchange-Rate Policy | Difficulty：1 Easy
- 题目 8: 答案：A | 选项内容：floating exchange-rate system when there is high capital mobility. | Topic：Key Issues in the Choice of Exchange-Rate Policy | Difficulty：2 Medium

## AI / NextLab 使用建议
- Mundell Trilemma Lab：将《Key Issues in the Choice of Exchange-Rate Policy》对应的理论或政策机制放到贸易分析实验室中做交互式验证。 https://digitconnection.ai/nextlab/