Bretton-Woods Systems, Old and New, and the Rotation of Exchange-Rate Regimes

25 Pages Posted: 1 Mar 2011

See all articles by George Hondroyiannis

George Hondroyiannis

Bank of Greece

P. A. V. B. Swamy

affiliation not provided to SSRN

G. S. Tavlas

Bank of Greece

Abstract

A recent contribution to the literature argues that the present international monetary system operates like the Bretton-Woods system. Asia is the new periphery of the system and pursues an export-led development strategy based on undervalued exchange rates and accumulated foreign reserves. The USA remains the centre country, pursuing a monetary-policy strategy that does not take external factors into account in conducting monetary policy. We test this hypothesis and also present a new method for decomposition of a time series using a time-varying business coefficient technique that allows us to test the relationship between the cycle and macroeconomic policies under both regimes.

Suggested Citation

Hondroyiannis, George and Swamy, P. A. V. B. and Tavlas, George, Bretton-Woods Systems, Old and New, and the Rotation of Exchange-Rate Regimes. The Manchester School, Vol. 79, No. 2, pp. 293-317, 2011, Available at SSRN: https://ssrn.com/abstract=1773236 or http://dx.doi.org/10.1111/j.1467-9957.2010.02194.x

George Hondroyiannis

Bank of Greece ( email )

21 E. Venizelos Avenue
GR 102 50 Athens
Greece

P. A. V. B. Swamy

affiliation not provided to SSRN

No Address Available

George Tavlas

Bank of Greece ( email )

21 E. Venizelos Avenue
GR-10250 Athens
Greece
+30 10 323 7224 (Phone)
+30 10 323 3025 (Fax)

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