This paper discusses the underlying objectives of the exchange rate regime are necessarily related to broader objectives of the international financial system and the international economy. The exchange rate regime should help to promote a satisfactory working of the adjustment process. The...

This paper incorporates the forward exchange market into a model of a small open economy under perfect capital mobility. It is shown that the degree to which the forward rate responds to movements in the spot exchange rate is important in determining the qualitative and quantitative impacts of...

This paper examines the effects of the emergence of the United Kingdom as a major oil producer, together with the pursuit of firm financial policies as part of an anti-inflation strategy, has had on the UK economy and, in particular, on the real exchange rate of the pound sterling, which...

This paper begins by describing the basic concepts of Islamic banking, focusing on the issue of elimination of the rate of interest from the system. Islam expressly prohibits a fixed or predetermined return on financial transactions but allows uncertain rates of return deriving from risk-taking...

This paper focuses on various aspects of the Euro-dollar market. The market in Euro-dollars is a wide and complicated one spread over six continents and bound together by a network of cable, telex, and telephone communication. The paperwork in the market tends to confirm rather than to initiate...

This paper reviews an attempt that is made to arrive at a rough quantification of the possible effects of various techniques of IMF reserve creation through the IMF on its own liquidity. For purposes of comparison, the additional needs for IMF resources arising, respectively, from the several...

This paper discusses that the governments of forty-nine countries have accepted the Articles of Agreement of the IMF. They have accepted the Agreement on their own behalf and in respect of all their colonies, overseas territories, all territories under their protection, suzerainty, or authority...

This paper surveys theoretical issues and empirical evidence on the effects of central bank intervention in foreign exchange markets on exchange rate movements. The focus is on the ability of fully sterilized intervention to influence exchange rates in a predictable manner. Theoretical...

This IMF Staff Paper highlights recent developments in monetary models of exchange rate determination. The seminal contributors to the monetary approach to the balance of payments suggested that the approach could be applied to a flexible exchange rate regime with only minor modifications....

This paper examines two questions: What basket of currencies should a small developing country use as the exchange rate standard for its currency? When are discretionary changes of the value of its currency against the standard warranted? The exchange rate policy of a small, price-taking country...