Floating Exchange Rates and the State of World Trade Payments by David Bigman and Teizo Taya

Those interested in and concerned about international finance and world trade will find this book absorbing and intriguing.

This informative book is a reprint of a 1984 edition and includes contributions of leading international monetary economists who analyze the developments in the international monetary system since the collapse of the Bretton Woods system in 1973. The subjects covered include the implications of the floating and market-determined exchange rate system for world trade and payments, the effects on the stability of the national economies and on the international monetary system, the contribution of the international organizations, and the policy options of individual countries. The use and value of this treatise are enhanced by the addition of a current epilogue that analyzes lessons of the past two decades.

Teizo Taya is currently a member of the Policy Board of the Bank of Japan. Born on March 5, 1945, he received his BA in Industrial Relation (1967) and MA in Applied Sociology (1969) from Rikkyo University. He then obtained his MA in Economics in 1973 and Ph.D. in Economics in 1977 from the University of California, Los Angeles.

He then became an economist for the International Monetary Fund, then moved on to become a Senior Economist and International Economic Manager of the Daiwa Securities Research Institute Ltd. Research Department (1983) and was promoted to Managing Director by 1998, rising within the Institute through different ranks.

David Bigman is currently professor of development economics at the Netherlands University of Wageningen and holds the Chair for Global Food Security and International Trade, served until recently as Senior Research Officer at the International Service for National Agricultural Research, ISNAR, a Future Harvest center of the Consultative Group on International Agricultural Research (CGIAR).

Chapter 1	3
Monetary Policy Under Exchange Rate Flexibility
-- Rudiger Dornbusch, Massachusetts Institute of Technology

Chapter 2	33
Floating as Seen from the Central Bank
-- Henry C. Wallich, Member, Board of Governors of the Federal Reserve System

Chapter 3	43
Analysis of Short-Run Exchange Rate Behavior: March 1973 to November 1981
-- Michael P. Dooley, International Monetary Fund
-- Jeffrey Shafer, Federal Reserve Bank of New York

Chapter 4	71
Exchange Rate Determination: Some Old Myths and New Paradigms
-- David Bigman, The Hebrew University of Jerusalem

Chapter 5	101
The J-Curve, Stabilizing Speculation, and Capital Constraints on Foreign Exchange Dealers
-- Ronald I. McKinnon, Stanford University

Chapter 6	127
Monetary Policy, the Balance of Payments, and the Exchange Rate
-- Pentti J.K. Kouri, New York University and Yale University

Chapter 7	161
The Demand for International Reserves under Pegged and Flexible Exchange Rate Regimes and Aspects of the Economics of Managed Float
-- Jacob A. Frenkel, University of Chicago and National Bureau of Economic Research

Chapter 8	189
Exchange Rate -- Price Causality in the Recent Floating Period
-- Masahiro Kawai, The Johns Hopkins University

Chapter 9	213
Exchange Rate Instability and Capital Controls: The Japanese Experience, 1978-1981
-- Ichiro Otani, International Monetary Fund

Chapter 10	241
The Causes of Export Instability: Comparing the Experience of Two Decades
-- Odin Knudsen, World Bank
-- Lloyd Harbert, U.S. Department of Agriculture

Chapter 11	259
Exchange Rates and the Adjustment Process
-- J. de Larosiere, Managing Director of the International Monetary Fund

Chapter 12	267
The Exchange Rate as an Instrument of Policy
-- Otmar Emminger, President, Deutsche Bundesbank

Chapter 13	285
On the Efficiency of the Generalized Floating System
-- Hideo Suzuki, Advisor to the President, the Nomura Securities, Co., Ltd. and former Special Advisor to the Minister of Finance, Japan

Chapter 14	291
Floating Exchange Rates: A Practical Lesson on the Automaticity of Adjustment Mechanisms
-- Guido Carli, President, Confederazione Generale dell'Industria Italiana and former Governor of the Bank of Italy

Name Index	301
Subject Index	305
Epilogue	311

Any views and/or opinions expressed by the Editors in this books are purely their own and do not necessarily represent the views and/or opinions held by any institution that they are presently associated with or have been associated with in the past.