Hostname: page-component-78c5997874-94fs2 Total loading time: 0 Render date: 2024-11-06T11:15:02.861Z Has data issue: false hasContentIssue false
  • English
  • Français

Exchange Rate Changes in the OECD-Area 1948-71 a Comparative Time Path Approach*

Published online by Cambridge University Press:  17 August 2016

E.S. Madsen  and
E. Paldam
E.S. Madsen
Affiliation:
Aarhus Business School
E. Paldam
Affiliation:
Aarhus University
Get access

Extract

During the period from 1949 to 1974 exchange rates were almost fixed in the OECD area. Since then some major rates have been moving, but even now most rates remain fixed relatively to each other and it is possible that we are returning to more fixed rates. Therefore it is of some relevance to try to summarize the experience of the few exchange rate changes that took place during the fixed rate period. Section II goes through the currency history of 20 main OECD-countries and identifies the 12 devaluations and 3 revaluations which occured in that period.

We have for each of these 15 cases tried to make a comparable story following the time-path of the same 16 main economic indicators - listed in Table 1 - in the last 3 years before the exchange rate change and in the first 3 years after the change. The changes have different sizes (and signs), happened in 9 different countries and are parts of rather different economic policies, but we shall show below that there are, nevertheless, a few main features that appear to generalize.

Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 49 , Issue 1 , March 1983 , pp. 25 - 45
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1983 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

The articles has benefitted from many discussions at our two institutes of several previous versions (in Danish, one of which is published in Nationaløkonomisk Tidsskrift 82/1). The article is an offshot of a larger project camparing price-wage formation etc. in 20 OECD-countries, and has received several grants from the Danish Social Science Research Council. We shall have to rely a great deal on our findings in other pans of the project.

References

REFERENCES

Bond, Marian E., (1980) Exchange Rates, Inflation, and Vicious Circles. IMF Staff Papers, Vol. 27, No. 4, Dec.Google Scholar
Boute, S., Carrin, G., Ginsburgh, V. & Pestieau, , (1981) Les économistes belges! tour d’ivoire ou tour de Babel. Cahiers Economiques de Bruxelles, No 92 — 4e trimestre.Google Scholar
Carre, J.-J., Dubois, P. & Malinvaud, E., (1975) French Economie Growth. Stanford.Google Scholar
Hansen, J.-O., & HundebøLL, V., (1982) Pengemaengdeog Renteserier for 20 OECD-Lande, 1948–1980. Inst, of Econ. Århus Univ., Notat 1982–8.Google Scholar
IMF, (1969) The International Monetary Fund 1945–1965. Vol. 1 & II. Washington.Google Scholar
Madsen, E. Strøjer, (1978) En sammenligning af nogle aggregerede eksportmodeller for 20 OECD-Lande (Cand oecon thesis) Århus.Google Scholar
MadsenE, Strøjer E, Strøjer & Paldam, M., (1978) Economic and Political Data for the Main OECD-Countries 1948–75. Memo 78–9. Økonomisk Institut, Århus Universitet.Google Scholar
Madsen, E. Strøjer, (1981) Devalueringer of Revalueringer i 20 OECD-Lande – En Beskrivelse. Nationaløkonomisk Institut, Handelshøjskolen, Århus.Google Scholar
Matthiessen, L. & Strom, S., (1981) (red.) Unemployment – Macro and Microeconomic Explanations, MacMillan, London.Google Scholar
Paldam, M., (1980) The International Element in the Phillips Curve. The Scandinavian Journal of Economics Vol. 82–2, Oct. Also reprinted in Matthiessen & Strøm (1981).Google Scholar
Paldam, M. (1983a) Industrial Conflicts and Economic Conditions – A Comparative Empirical Investigation. The European Economic Review.Google Scholar
Paldam, M., (1983b) The International Element in Economic Fluctuations of 20 OECD- Countries 1948–75. Regional Science & Urban Economics.Google Scholar
Stern, R.M., Francis, & Schumacher, B., (1976) Price Elasticities in International Trade; annotated Bibliopraghy MacMillan, London.Google Scholar
Wilson, H., (1981) The Labor Government 1964–1979: a personal record. Weidenfeld and Michel Joseph, London.Google Scholar