Estimating Equilibrium Exchange Rates

by John Williamson (Editor)

Overview

The problems of exchange rate misalignments and the resulting payments imbalances have plagued the world economy for decades. At the Louvre Accord of 1987, the Group of Five industrial countries adopted a system of reference ranges for exchange rate management, influenced by proposals of C. Fred Bergstan and John Williamson for a target zone system. The reference range approach has, however, been operated only intermittently and half-heartedly, and questions continue to be raised in policy and scholarly circles about the design and operation of a full-fledged target zone regime. This volume, with chapters by leading international economists, explores one crucial issue in the design of a target zone system: the problem of calculating Williamson's concept of the fundamental equilibrium exchange rate (FEER). Williamson contributes an overview of the policy and analytic issues and a second chapter on his own calculations.

Product Details

ISBN-13:	9780881320763
Publisher:	Peterson Institute for International Economics
Publication date:	09/01/1994
Pages:	300
Product dimensions:	6.00(w) x 9.00(h) x (d)
Age Range:	18 Years

About the Author

John Williamson, senior fellow (retired), was associated with the Institute from 1981 to 2012. He was project director for the UN High-Level Panel on Financing for Development (the Zedillo Report) in 2001; on leave as chief economist for South Asia at the World Bank during 1996–99; economics professor at Pontifica Universidade Católica do Rio de Janeiro (1978–81), University of Warwick (1970–77), Massachusetts Institute of Technology (1967, 1980), University of York (1963–68), and Princeton University (1962–63); adviser to the International Monetary Fund (1972–74); and economic consultant to the UK Treasury (1968–70).

Editorial Reviews

Leading international economists explore one crucial issue in the design of a target zone system: the problem of calculating Williamson's concept of the fundamental equilibrium exchange rate (FEER). Williamson, a fellow at the Institute for International Economics, contributes an overview of the policy and analytic issues and a chapter on his own calculations. Other contributors discuss the conceptual and empirical issues involved in their approaches to the problem. Annotation c. Book News, Inc., Portland, OR (booknews.com)

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