search query: @author Maticic, C. / total: 12
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| Author: | Maticic, C. |
| Title: | Fluctuations in exchange relations |
| Journal: | Bancni vestnik
1995 : VOL. 44:10, p. 18-27 |
| Index terms: | INTERNATIONAL MONETARY SYSTEM EXCHANGE RATES FLOATING RATES |
| Language: | slv |
| Abstract: | The author analyses the world monetary system for the period since the second world war in the light of fixed and floating exchange rates.First, the author analyses the fixed exchange rate, which is characterised ty the enormous exchange disequilibrium in the so called Third World. According to the author the situation brought about the distinction between soft and hard currencies.Data on nominal parity between the pound sterling and the French franc on the one side, and the German mark on the other, confirm that the British pound and the French franc often los value in relation to the German mark.The pound sterling was for longer periods of time unusually overvalued, whereas the German mark was undervalued.The author by the help of mathematical records and statistical methods proves that the nominal value of the majority of currencies has changed in relation to the German mark.Among the major culprits for the fall of the system of fixed exchange rates are listed the flirting of the economic policies with inflation and the maladjusted interest rate policy of the individual developed countries.The U.S. currency was the only one to profit from the system of the fixed exchange rate.Under the system of the floating exchange relationship a free exchange between the dollar, the yen and the Ecu was established.Nominal variances between the parities were permitted under the regime.Thus the changes in the nominal exchange relationship between the pound sterling and the French franc towards the German mark were established in favour of the latter.The permanently overvalued U.S. dollar in relation to the German mark and the Japanese yen gradually disappeared.At the end the author establishes that both exchange rate regimes have their own advantages and disadvantages, yet the personalIy tends to believe that the floating exchange rate is more flexible and thus more advantageous.In Slovenia too the system has played a positive role in recent years. |
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