Abstract
Exchange rates, interest rates and share prices are subject—at least occasionally—to great fluctuations. Diverse economists regard the volatility of international financial markets as a threat to the goods and labour markets. They blame the price turbulences on the speculative behaviour of a large section of market participants, and claim that the deregulation and liberalization of the international financial markets in the eighties has therefore already gone too far. Under discussion today are approaches to a re-regulation of the money, capital and foreign exchange markets. These proposals are evaluated in the following paper.
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References
Cf. Felix G. Rohatyn: A Financial House of Cards, in: Time. 17. 10. 1988; for an overview of the current state of discussion cf. Stuart E. Weiner: Financial Market Volatility: Summary of the Bank’s 1988 Symposium, in: Federal Reserve Bank of Kansas City, Economic Review, January 1989, pp. 9–19.
On this, cf. for example John Williamson, Marcus M. Miller: Targets and Indicators: A Blueprint for the International Coordination of Economic Policy, Washignton D.C. 1987; John Williamson: Zielzonen für Wechselkurse, in: Jean-Pierre Blancpain (ed.): Floating. Auf der Suche nach Alternativen, Zürich 1989, pp. 39–43.
A critical review of the cooperation approaches is to be found in Beate Reszat: Prospects of Macro-economic Policy: A German View, paper prepared for a joint project on trilateral policy cooperation with the Institute for International Economics, Washington D.C., and the Sasakawa Peace Foundation, Tokyo, Hamburg, December 1988.
Cf. Gerhrad Maier: Monetary Cooperation in Europe, in: INTERECONOMICS, Vol. 23 (1988), No. 1, pp. 3–7.
Cf. James Tobin: Sandins Räderwerk der Devisenspekulation, in: Jean-Pierre Blancpain, op. cit. Floating, Auf der Suche nach Alternativen, Zürich 1989, pp. 62–67.
Cf. Amit Bhaduri, Egon Matzner: Relaxing the International Constraints on Full Employment, Report to the 4th Session of the LME’s International Conference: No Way to Full Employment?, Proposals for Institutional Reform, Evidence from LME’s Research, Berlin, 5th to 7th July 1989, mimeo.
Cf. J. Marcus Fleming: Domestic Financial Policies under Fixed and under Floating Exchange Rates, in: IMF Staff Papers, 9, 1962, pp. 369–379; Robert A. Mundell: The Appropriate Use of Monetary and Fiscal Policy for International and External Stability, in: IMF Staff Papers, 9, 1962, pp. 70–79.
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Maier, G. International financial markets: Control or liberalization?. Intereconomics 25, 238–241 (1990). https://doi.org/10.1007/BF02933655
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DOI: https://doi.org/10.1007/BF02933655