This informative book provides an overview of monetary policy in open economies from a post-Keynesian perspective. Leading experts discuss how exchange rate dynamics interact with central banking practices, monetary policy strategies and how they influence growth and inflation.
Across a blend of theoretical and empirical chapters, the book examines transformations in the framework of central banking and monetary policymaking, including the recognition that the exchange rate should not be viewed merely as a passive shock absorber but as a strategic policy variable. The contributing authors address exchange rate determination in the context of high financial integration and investigate the macroeconomic implications of exchange rate volatility. Chapters explore key topics such as conflict inflation, interest-rate parity theorems, the Covid-19 shock and the global offshore-dollar system.
Students and academics focusing on post-Keynesian economics, financial economics and regulation, political economy and money and banking will greatly benefit from this book. It is also an interesting read for practitioners in central banking.
This informative book provides an overview of monetary policy in open economies from a post-Keynesian perspective. Leading experts discuss how exchange rate dynamics interact with central banking practices, monetary policy strategies and how they influence growth and inflation.
Arvustused
This book is a long-awaited compendium of financial and trade issues in peripheral countries. The book, based on the notion of currency hierarchy, deals with financialization, trade credit, carry trade, offshore transactions, interest parity, and the distributional and inflationary consequences of exchange rate depreciation. The authors all provide innovative analyses. -- Marc Lavoie, University of Ottawa, Canada This book brings together leading post-Keynesian and structuralist perspectives on how monetary policy, exchange rate regimes, and financial globalization interact in both advanced and developing economies. The volume offers an insightful and enriching analysis of how global financial hierarchies shape macroeconomic performance. A must-read for anyone interested in international financial issues. -- Matías Vernengo, Bucknell University, USA
Contents
About the editors vii
List of contributors viii
Introduction to Central Banking, Monetary Policy, and Exchange
Rates 1
Lilian Rolim, Nathalie Marins, and Sylvio Kappes
PART I THEORY AND ACCOUNTING
1 An accounting framework for understanding exchange rates 6
John T. Harvey
2 Exogenous interest rate and interest rate parity theorems: the
post-Keynesian debate and a proposed alternative 23
Ricardo Summa and Nathalie Marins
3 Financialization of the exchange rate: conceptual
delimitations and description of the Brazilian case 46
Pedro Rossi and Ana Carolina Nicacio
PART II INSTRUMENTS
4 A balance sheet approach to international trade and capital
flows 65
Sylvio Antonio Kappes
5 Repo market and primary dealers: derisking in the Brazilian
Central Banks liquidity management 80
Cyro Faccin, Daphnae Helena Picoli, and Bruno De Conti
6 Central banking in subordinate financialized capitalism 101
Annina Kaltenbrunner and Juan Pablo Painceira
PART III MACROECONOMIC IMPLICATIONS
7 Endogenous productivity regime and the impact of a
competitive real exchange rate on economic growth 122
Hugo Iasco-Pereira and Fabrício Missio
8 Exchange rates and conflict inflation theory 147
Guilherme Spinato Morlin
Edited by Lilian Rolim, Assistant Professor, Instituto de Economia, Universidade Estadual de Campinas (UNICAMP), Nathalie Marins, Assistant Professor, Federal University of Rio de Janeiro and Sylvio Antonio Kappes, Assistant Professor, Federal University of Alagoas, Brazil, Co-Editor, Review of Political Economy and Co-Director, Monetary Policy Institute
