The Revived Bretton Woods System: The Effects of Periphery Intervention and Reserve Management on Interest Rates & Exchange Rates in Center Countries Export

@article{citeulike:4097253, abstract = {Author contact info: Michael P. Dooley Department of Economics Engineering II University of California, Santa Cruz Santa Cruz, CA 95064 Tel: 347/408-5582 Fax: 831/459-5077 E-Mail: mdooley@cabezoncapital.com Peter M. Garber Deutsche Bank 60 Wall Street New York, NY 10005 Tel: 212/250-5466 Fax: 212/250-2628 E-Mail: peter.garber@db.com In this paper we explore some implications of the revived' Bretton Woods system for exchange market intervention and reserve management in periphery countries. Financial policies in these countries are seen as a component of a more general portfolio management policy in which the formation of an efficient domestic capital stock is a key objective. Because intervention in financial markets is an important part of their development strategy, intervention in exchange and financial markets has, and we argue will continue to be, large and persistent enough to generate predictable deviations of exchange rates and relative yields in industrial country financial markets from normal cyclical patterns. We argue that management of the currency composition of international reserves by emerging market governments and central banks is unlikely to alter these conclusions.}, author = {Dooley, Michael P. and Folkerts-Landau, David and Garber, Peter}, citeulike-article-id = {4097253}, citeulike-linkout-0 = {http://www.nber.org/papers/w10332}, citeulike-linkout-1 = {http://www.nber.org/papers/w10332.pdf}, journal = {National Bureau of Economic Research Working Paper Series}, keywords = {bop, flow, fx}, month = {March}, pages = {10332+}, posted-at = {2009-02-25 10:41:39}, priority = {2}, title = {The Revived Bretton Woods System: The Effects of Periphery Intervention and Reserve Management on Interest Rates \& Exchange Rates in Center Countries}, url = {http://www.nber.org/papers/w10332}, year = {2004} }

TY - JOUR ID - citeulike:4097253 L3 - citeulike-article-id:4097253 N2 - Author contact info: Michael P. Dooley Department of Economics Engineering II University of California, Santa Cruz Santa Cruz, CA 95064 Tel: 347/408-5582 Fax: 831/459-5077 E-Mail: mdooley@cabezoncapital.com Peter M. Garber Deutsche Bank 60 Wall Street New York, NY 10005 Tel: 212/250-5466 Fax: 212/250-2628 E-Mail: peter.garber@db.com In this paper we explore some implications of the revived' Bretton Woods system for exchange market intervention and reserve management in periphery countries. Financial policies in these countries are seen as a component of a more general portfolio management policy in which the formation of an efficient domestic capital stock is a key objective. Because intervention in financial markets is an important part of their development strategy, intervention in exchange and financial markets has, and we argue will continue to be, large and persistent enough to generate predictable deviations of exchange rates and relative yields in industrial country financial markets from normal cyclical patterns. We argue that management of the currency composition of international reserves by emerging market governments and central banks is unlikely to alter these conclusions. JF - National Bureau of Economic Research Working Paper Series TI - The Revived Bretton Woods System: The Effects of Periphery Intervention and Reserve Management on Interest Rates & Exchange Rates in Center Countries SP - 10332 KW - bop KW - flow KW - fx AU - Dooley, Michael AU - Folkerts-Landau, David AU - Garber, Peter PY - 2004/March// UR - http://www.nber.org/papers/w10332 ER -