普格尔《国际贸易（第17版）》 英文手册Pugel_17e_chap025_IM.docxVIP

PAGE PAGE 209 ? 2016 by McGraw-Hill Education. ?This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. ?This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.? Chapter 25 National and Global Choices: Floating Rates and the Alternatives Overview This chapter provides a capstone to the discussion of international finance and international macroeconomics by examining the choice between fixed and floating exchange rates. Much of the discussion examines this choice from the point of view of a single country, but the discussion also examines some issues related to the functioning of the entire system. The text examines five key issues that can influence a countrys choice. Figure 25.1 presents a summary of implications of the key issues for the advantages of each policy choice. First, different types of shocks have different effects, depending on which exchange rate policy is chosen. Internal shocks, especially domestic monetary shocks, are less disruptive to the domestic economy with a fixed exchange rate. External shocks, especially international trade shocks, are less disruptive with a floating exchange rate. If a country believes that it is mainly hit with internal shocks, it would favor a fixed rate; if it believes that it is mainly hit by external shocks, it would favor a floating rate. Second, monetary policy is less effective as an independent policy influence on the domestic economy with a fixed exchange rate (compared to its effectiveness with a floating rate). One expression of this limitation is the trilemma—a country can have any two of a fixed exchange rate, free international capital flows, and an independent monetary policy, but a country cannot have all three. Differences in the effectiveness of fiscal policy depend on the responsiveness of capital flows to interest rate changes. The key conclusion is that a country tha