Sign up for our literacy platform for free for reading at home

Reform of the International Monetary System: Why and How?

Authors: Taylor, John B.
Publisher: MIT Press
BISAC/Subject: BUS045000
ISBN: 9780262352680, Related ISBNs: 0262352680, 0262536757, 9780262352680, 9780262536752
Classification: Non-Fiction
Number of pages: 152,
Audience: General/trade
Synopsis: An argument that a rules-based reform of the international monetary system, achieved by applying basic economic theory, would improve economic performance.

In this book, the economist John Taylor argues that the apparent correlation of monetary policy decisions among different countries—largely the result of countries' concerns about the exchange rate—causes monetary policy to deviate from effective policies that stabilize inflation and the economy. He argues that a rules-based reform of the international monetary system, achieved by applying basic economic theory, would improve economic performance.

Taylor shows that monetary polices in recent years have been deployed either defensively, as central banks counteract forces from abroad that affect the exchange rate, or offensively, as central banks attempt to move the exchange rate to gain a competitive advantage. Focusing on the years from 2005 to 2017, he develops an empirical framework to examine two monetary policy instruments: the policy interest rate (the more conventional of the two) and the size of the balance sheet. He finds that an international contagion in central bank decisions about the policy interest rate has accentuated the deviation from standard interest rate rules that have worked in the past. He finds a similar contagion in decisions about the size of the balance sheet. By considering a counterfactual policy in the estimated model, Taylor is able to estimate by how much the policy of recent years has increased exchange rate volatility. After several rounds of monetary actions and reactions aimed at exchange rates, Taylor finds, the international monetary system is left with roughly the same interest rate configuration, but much larger balance sheets to unwind.

Sign up for our literacy platform for reading at home

LightSail includes up to 6,000 high interest, Lexile aligned book titles with every student subscription. Other titles are available for individual purchase.

Watch the power of

Lightsail in action

×

SUPPORT GROWING READERS

Immediately Engage Students
Immediately Engage Students
Simple intuitive design has classrooms reading within minutes.
Exponentially Grow Reading Time
Exponentially Grow Reading Time
Students love the LightSail experience and naturally spend more time reading.
Accelerate Literacy Development
Accelerate Literacy Development
Students reading 25 minutes a day on LightSail are seeing 2+ years of Lexile growth in a single year.

LightSail Education is a comprehensive Lexile and standards-aligned, literacy platform and digital e-book library. Including multimodal learning functionality and featuring books from leading publishers, LightSail holistically assesses and nurtures each student on their reading and writing-to-learn journey, throughout elementary, middle, and high school.

*LightSail offers a 2,000 or a 6,000 title bundle with its student subscriptions. Other titles are available for individual purchase.