Exchange rate misalignment and the target zones proposal

Kunkel, John Henry. (1987). Exchange rate misalignment and the target zones proposal Honours Thesis, School of Economics, The University of Queensland.

       
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Author Kunkel, John Henry.
Thesis Title Exchange rate misalignment and the target zones proposal
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 1987
Thesis type Honours Thesis
Total pages 135
Language eng
Subjects 14 Economics
Formatted abstract Recent assessments of the post-1973 exchange rate experience have outlined various limitations with present arrangements. This thesis examines one such deficiency and a proposal designed to address it and other assumed failings. Misalignment describes where an exchange rate remains persistently out of line from its equilibrium level. The perception of sufficient evidence of misalignment and its associated costs has led some commentators to argue for systemic reform of international monetary arrangements. The idea of exchange rate target zones has been proposed as a way to limit misalignment and deliver wider supplementary benefits. The underlying theme of this dissertation is that this body of opinion does not warrant passive acceptance. Attempts at isolating both the evidence and costs of misalignment are more problematical than is supposed. Moreover, the case for target zones appears exaggerated in view of economic and political' constraints and its operational naivety. The seed of its ultimate downfall lies in the fact that target zones seek to address the symptom rather than the cause of present discontent with the exchange rate system.

 
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Created: Mon, 22 Nov 2010, 11:07:44 EST by Ning Jing on behalf of The University of Queensland Library