Skip to main content
Disciplines
Automotive Business IT + Informatics Construction + Real Estate Electrical Engineering + Electronics Energy + Sustainability Insurance + Risk Finance + Banking Management + Leadership Marketing + Sales Mechanical Engineering + Materials
Events
DE
EN
Books
Journals
Topic Page
Marketing
Start single access now
Access for companies
EXTENDED SEARCH
Log in
Top
Published in:
Introduction Read chapter Read first chapter

2024 | OriginalPaper | Chapter

7. Neoclassical and Keynesian Approaches to International Transactions

Authors : Andrea Carrera, Alvaro Cencini

Published in: National and International Monetary Payments

Publisher: Springer International Publishing

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

The neoclassical approach to international payments is based on the interchangeability of national currencies, as if they were perfect, homogeneous objects of trade. In this context, the relative price of currencies is thought to be the result of the adjustment between the demand for money and money’s supply. This chapter develops a critical survey of the traditional analysis of the sources that lead to exchange rate fluctuations, from trade balances to capital transactions, from economic “fundamentals”—inflation, deflation, and interest rates—to speculation in the euro-dollar or xeno-currency market. The chapter focuses on the role of speculation in exchange rate volatility and delves into the concept of monetary integration as the way to reduce such fluctuations. An assessment is made of Mundell’s Optimum Currency Areas (OCAs), leading to the new proposal for Clearing Integrated Monetary Areas (CIMAs), of which regional monetary payment clearing would be the layer.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

inform now
previous chapter The Classics’ View of International Transactions
next chapter Keynes’s Analysis of External Payments and the Plans for a World Monetary Reform
Literature
Cassel, G. (1918). Abnormal deviations in international exchanges. Economic Journal, 28(112), 413–415.CrossRef
De Grauwe, P. (1992). The economics of monetary integration. Oxford University Press.
Eichengreen, B. (1992, December). Should the Maastricht Treaty be saved? Princeton Studies in International Finance, No. 74. Princeton University Press.
Eichengreen, B. (1994). International monetary arrangements for the twenty-first century. Brookings Institution.
European Central Bank. (2007). Blue Book. European Central Bank.
Fleming, J. M. (1962). Domestic financial policies under fixed and under floating exchange rates. IMF Staff Papers, 9(3), 369–379.CrossRef
Frankel, J. A. (1999, August). No single currency regime is right for all countries or at all times. Princeton Studies in International Finance, No. 215. Princeton University Press.
Goodhart, C. A. E., & Payne, R. (2000). The foreign exchange market. Macmillan.
Isard, P. (1995). Exchange rate economics. Cambridge University Press.
Kenen, P. (1969). The theory of optimum currency areas: An eclectic view. In R. A. Mundell & A. K. Swoboda (Eds.), Monetary problems of the international economy (pp. 41–60). University of Chicago Press.
Krugman, P. (1993). Lessons of Massachusetts for EMU. In F. Torres & F. Giavazzi (Eds.), Adjustment and growth in the European Monetary Union (pp. 241–261). Cambridge University Press.CrossRef
McKinnon, R. I. (1963). Optimum currency areas. The American Economic Review, 53(4), 717–725.
McKinnon, R. I. (2005). Optimum currency areas and key currencies: Mundell I versus Mundell II. In R. I. McKinnon (Ed.), Exchange rates under the East Asian dollar standard (pp. 199–226). MIT Press.CrossRef
Mundell, R. A. (1961). A theory of optimum currency areas. The American Economic Review, 51(4), 657–665.
Mundell, R. A. (1963). Capital mobility and stabilization policy under fixed and flexible exchange rates. Canadian Journal of Economics and Political Science, 29(4), 475–485.CrossRef
Mundell, R. A. (1969). Problems of the international monetary system. In R. A. Mundell & A. K. Swoboda (Eds.), Monetary problems of the international economy (pp. 21–38). University of Chicago Press.
Obstfeld, M., & Rogoff, K. (1995). The mirage of fixed exchange rates. Journal of Economic Perspectives, 9(4), 73–96.CrossRef
Reinhart, C., & Calvo, G. (2002). Fear of floating. Quarterly Journal of Economics, 117(2), 379–408.CrossRef
Rueff, J. (1963). Gold exchange standard a danger to the West. In H. G. Grubel (Ed.), World monetary reform: Plans and issues (pp. 320–328). Stanford University Press and Oxford University Press. Reprinted from The Times (London), June 27–29, 1961.
Schmitt, B. (1960). La formation du pouvoir d’achat. Sirey.
Schmitt, B. (1966). Monnaie, salaires et profits. Presses Universitaires de France. Printed in 1975 at Albeuve: Castella.
Schmitt, B. (1975). Théorie unitaire de la monnaie, nationale et internationale. Castella.
Schmitt, B. (1984a). Inflation, chômage et malformations du capital. Castella.
Schmitt, B. (1984b) Les pays au régime du FMI. Castella.
Schmitt, B. (2021). Inflation, unemployment and capital malformations. Routledge. English translation by Xavier Bradley and Alvaro Cencini of B. Schmitt (1984a) Inflation, chômage et malformations du capital. Castella.
Metadata
Title
Neoclassical and Keynesian Approaches to International Transactions
Authors
Andrea Carrera
Alvaro Cencini
Copyright Year
2024
Book
National and International Monetary Payments

Print ISBN: 978-3-031-51736-5

Electronic ISBN: 978-3-031-51737-2

Copyright Year: 2024

DOI
https://doi.org/10.1007/978-3-031-51737-2_7