This chapter focuses on the impact of monetary and fiscal policy under the flexible exchange rates and alternative expectations structures. Several economists have argued that, to understand recent exchange rate movements, one must examine the process by which exchange rate expectations are...

This paper provides an analysis of attempts at international coordination of national policies leads to the conclusion that true international action that has a good chance to succeed for specific measures, such as changes in exchange rates, customs tariffs, and perhaps discount rates. There is,...

This paper explains contribution of the September 1949 devaluations to the solution of Europe's dollar problem. After the devaluations, the dollar value of exports to the United States from the devaluing countries in Europe recovered from the low levels of the second and third quarters of 1949,...

This paper discusses various foreign payments practices in the United States. Most foreign payments in the United States are, therefore, done along traditional lines in whatever manner. Several nontraditional practices, however, have developed in recent years as the result of trade and payments...

This paper focuses on current issues on the transmission process of monetary policy. The main process by which monetary forces influence the real economy in Keynesian income/expenditure models is through the cost-of-capital channel. In addition to the cost-of-capital channel, post-Keynesians...

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...