Anzeige
Erschienen in:
2006 | OriginalPaper | Buchkapitel
Monetary Coordination Involving Developing Countries: The Need for a New Conceptual Framework
verfasst von : Barbara Fritz, Martina Metzger
Erschienen in: New Issues in Regional Monetary Coordination
Verlag: Palgrave Macmillan UK
Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.
Wählen Sie Textabschnitte aus um mit Künstlicher Intelligenz passenden Patente zu finden. powered by
Markieren Sie Textabschnitte, um KI-gestützt weitere passende Inhalte zu finden. powered by
As the East Asian crisis has impressively shown, sudden U-turns in capital flows and volatile exchange rates must today be identified as major sources of instability, even in a favourable world economic climate. Countries not engaged in a regional monetary coordination arrangement and therefore unilaterally exposed to these instabilities fall back on a combination of monetary and fiscal policies to avert depreciation, and if — as is regrettably too often the case — the struggle is lost, on competitive devaluations. The balance-sheet effects of devaluations and increased domestic interest rates depress domestic income generation and result in a deterioration of public budgets. Moreover, this policy mix has an extremely deleterious impact on regional integration, as the case of Mercosur compellingly indicates.