Suchergebnisse

Introduction to the global economy -- Understanding the global economy -- Comparative advantage : how nations can gain from international trade -- International trade : enduring issues -- Sources of comparative advantage -- Regulating international trade : trade policies and their effects -- Regionalism and multilateralism -- International finance : enduring issues -- Balance of payments and foreign exchange markets -- Exchange-rate systems, past to present -- The power of arbitrage : purchasing power and interest rate parities -- Global money and banking : where central banks fit into the world economy -- Contemporary global economic issues and policies -- Can globalization lift all boats? -- Economic development -- Industrial structure and trade in the global economy : businesses without borders -- The public sector in the global economy -- Dealing with financial crises : does the world need a new international financial architecture? -- Glossary -- Index

This paper applies a two-country framework that allows for currency substitution in an environment in which policymakers optimally vary interest rates in light of utility-based objectives, one country pegs the value of its currency to the other nation's currency, and government revenue is generated via explicit taxes and seigniorage. The analysis illustrates the roles that currency substitution, currency preferences, and efficiency of tax systems play in contributing to the likelihood of a "run" on one nation's currency. We explore how these factors interact to influence the probability of a currency crisis in the country that fixes its exchange rate.

This title was first published in 2001. John Kirton, Joseph Daniels and Andreas Freytag present an indispensable and authoritative collection of papers which examine both the professional economic merits and the underlying politics, of the hotly contested competing initiatives for strengthening the international financial system. Containing the first treatment of China's relationship with the G7/G8 and comprehensive analysis of the new G20 forum, this volume in the G8 and Global Governance series also looks at the possibilities for the G8 system. It places the work of the G7 within a broader context of global governance and the new challenges facing the international community in the new century. A balanced selection of distinguished experts from the G7 countries and from emerging markets outside, provide an essential addition to the bookshelves of academics, government officials and business and media communities interested in keeping abreast of the ongoing and rapidly expanding work of the G7/G8 system.