The importance of exchange rate regimes Essay Example | Topics and Well Written Essays - 2500 words

The importance of exchange rate regimes - Essay Example In terms of monetary policy (management of money and interest rates), the exchange rate is managed by a country through its exchange rate regime, an organized set of rules through which a nation’s exchange rate is established, especially the way the monetary or other government authorities are or are not involved in the foreign exchange market. These regimes include floating exchange rates, pegged exchange rates, managed float, crawling peg, currency board and exchange controls. It is the manner in which a country manages its currency in vis-à  -vis foreign countries and the foreign exchange market.  Dornbusch et al. (1999) differentiates the fixed and floating exchange rate regimes through the following: in a fixed exchange rate system, foreign central banks stand ready to buy and sell their currencies at a fixed price in terms of another currency, for example, dollars. From the end of the second world war up to 1973, major countries had fixed exchange rates against one an other. Presently, there are still those that use the system while others prefer to use the floating exchange rate. Recent developments include the revaluation of the Chinese yuan in July 2005 in which Chinese monetary authorities decided to allow the currency to gradually â€Å"float† against the dollar. By contrast, the central banks allow the exchange rate to adjust to equate the supply and demand for foreign currency in a floating exchange rate system.   Dornbusch et al. (2003) divides such exchange rate regime into three more subsystems.... Mishkin (2003) defines the exchange rate as the price of one currency in terms of another (say euros per dollar) and it is in the foreign exchange market that they are determined. In terms of monetary policy (management of money and interest rates), the exchange rate is managed by a country through its exchange rate regime, an organized set of rules through which a nation's exchange rate is established, especially the way the monetary or other government authorities are or are not involved in the foreign exchange market. These regimes include floating exchange rates, pegged exchange rates, managed float, crawling peg, currency board and exchange controls. It is the manner in which a country manages its currency in vis--vis foreign countries and the foreign exchange market. Dornbusch et al. (1999) differentiates the fixed and floating exchange rate regimes through the following: in a fixed exchange rate system, foreign central banks stand ready to buy and sell their currencies at a fixed price in terms of another currency, for example, dollars. From the end of the second world war up to 1973, major countries had fixed exchange rates against one another. Presently, there are still those that use the system while others prefer to use the floating exchange rate. Recent developments include the revaluation of the Chinese yuan in July 2005 in which Chinese monetary authorities decided to allow the currency to gradually "float" against the dollar. By contrast, the central banks allow the exchange rate to adjust to equate the supply and demand for foreign currency in a floating exchange rate system.1 Dornbusch et al. (2003) divides such exchange rate regime into

The importance of exchange rate regimes Essay Example | Topics and Well Written Essays - 2500 words

The importance of exchange rate regimes - Essay Example In terms of monetary policy (management of money and interest rates), the exchange rate is managed by a country through its exchange rate regime, an organized set of rules through which a nation’s exchange rate is established, especially the way the monetary or other government authorities are or are not involved in the foreign exchange market. These regimes include floating exchange rates, pegged exchange rates, managed float, crawling peg, currency board and exchange controls. It is the manner in which a country manages its currency in vis-à  -vis foreign countries and the foreign exchange market.  Dornbusch et al. (1999) differentiates the fixed and floating exchange rate regimes through the following: in a fixed exchange rate system, foreign central banks stand ready to buy and sell their currencies at a fixed price in terms of another currency, for example, dollars. From the end of the second world war up to 1973, major countries had fixed exchange rates against one an other. Presently, there are still those that use the system while others prefer to use the floating exchange rate. Recent developments include the revaluation of the Chinese yuan in July 2005 in which Chinese monetary authorities decided to allow the currency to gradually â€Å"float† against the dollar. By contrast, the central banks allow the exchange rate to adjust to equate the supply and demand for foreign currency in a floating exchange rate system.   Dornbusch et al. (2003) divides such exchange rate regime into three more subsystems.... Mishkin (2003) defines the exchange rate as the price of one currency in terms of another (say euros per dollar) and it is in the foreign exchange market that they are determined. In terms of monetary policy (management of money and interest rates), the exchange rate is managed by a country through its exchange rate regime, an organized set of rules through which a nation's exchange rate is established, especially the way the monetary or other government authorities are or are not involved in the foreign exchange market. These regimes include floating exchange rates, pegged exchange rates, managed float, crawling peg, currency board and exchange controls. It is the manner in which a country manages its currency in vis--vis foreign countries and the foreign exchange market. Dornbusch et al. (1999) differentiates the fixed and floating exchange rate regimes through the following: in a fixed exchange rate system, foreign central banks stand ready to buy and sell their currencies at a fixed price in terms of another currency, for example, dollars. From the end of the second world war up to 1973, major countries had fixed exchange rates against one another. Presently, there are still those that use the system while others prefer to use the floating exchange rate. Recent developments include the revaluation of the Chinese yuan in July 2005 in which Chinese monetary authorities decided to allow the currency to gradually "float" against the dollar. By contrast, the central banks allow the exchange rate to adjust to equate the supply and demand for foreign currency in a floating exchange rate system.1 Dornbusch et al. (2003) divides such exchange rate regime into

The importance of exchange rate regimes Essay Example | Topics and Well Written Essays - 2500 words

The importance of exchange rate regimes - Essay Example In terms of monetary policy (management of money and interest rates), the exchange rate is managed by a country through its exchange rate regime, an organized set of rules through which a nation’s exchange rate is established, especially the way the monetary or other government authorities are or are not involved in the foreign exchange market. These regimes include floating exchange rates, pegged exchange rates, managed float, crawling peg, currency board and exchange controls. It is the manner in which a country manages its currency in vis-à  -vis foreign countries and the foreign exchange market.  Dornbusch et al. (1999) differentiates the fixed and floating exchange rate regimes through the following: in a fixed exchange rate system, foreign central banks stand ready to buy and sell their currencies at a fixed price in terms of another currency, for example, dollars. From the end of the second world war up to 1973, major countries had fixed exchange rates against one an other. Presently, there are still those that use the system while others prefer to use the floating exchange rate. Recent developments include the revaluation of the Chinese yuan in July 2005 in which Chinese monetary authorities decided to allow the currency to gradually â€Å"float† against the dollar. By contrast, the central banks allow the exchange rate to adjust to equate the supply and demand for foreign currency in a floating exchange rate system.   Dornbusch et al. (2003) divides such exchange rate regime into three more subsystems.... Mishkin (2003) defines the exchange rate as the price of one currency in terms of another (say euros per dollar) and it is in the foreign exchange market that they are determined. In terms of monetary policy (management of money and interest rates), the exchange rate is managed by a country through its exchange rate regime, an organized set of rules through which a nation's exchange rate is established, especially the way the monetary or other government authorities are or are not involved in the foreign exchange market. These regimes include floating exchange rates, pegged exchange rates, managed float, crawling peg, currency board and exchange controls. It is the manner in which a country manages its currency in vis--vis foreign countries and the foreign exchange market. Dornbusch et al. (1999) differentiates the fixed and floating exchange rate regimes through the following: in a fixed exchange rate system, foreign central banks stand ready to buy and sell their currencies at a fixed price in terms of another currency, for example, dollars. From the end of the second world war up to 1973, major countries had fixed exchange rates against one another. Presently, there are still those that use the system while others prefer to use the floating exchange rate. Recent developments include the revaluation of the Chinese yuan in July 2005 in which Chinese monetary authorities decided to allow the currency to gradually "float" against the dollar. By contrast, the central banks allow the exchange rate to adjust to equate the supply and demand for foreign currency in a floating exchange rate system.1 Dornbusch et al. (2003) divides such exchange rate regime into

Should national energy policy in the US focus on building more nuclear Research Paper

Should national energy policy in the US focus on building more nuclear power plants - Research Paper Example Due to the growing issue of safety and security globally, many terrorist organizations are trying to access nuclear facilities for endangering the security of the United States. Internally, the existing nuclear reactors in U.S. will experience change in their design as they have received 20 year operating license extensions (Blatt 228). Nuclear disposal management poses a severe challenge for the authorities as well. The problem of highly radioactive waste disposal and storage has adopted a controversial aspect. Consequently, it is more feasible to use alternative energy resources such as biomass, wind energy, ethanol, and other resources. In the subsequent part of this research paper, first the Energy Policy is accounted for, which is followed by cost, safety and security side, and waste management of nuclear plants. Before summary, alternative sources to nuclear plants are elaborated. Energy Policy The Energy Policy Act (EPA) accounts for energy production in the United States (Env ironmental Protection Agency). The Policy includes the issues such as energy efficiency, oil and gas , coal, renewable energy, nuclear matters and security, tribal energy, vehicles and motor fuels including ethanol, energy tax incentives, hydrogen, hydropower and geothermal energy and climate change technology. ... On the other hand, the secondary energy source is provided by electricity that is produced from the primary sources. According to the statistics provided by the EIA, the breakout of total energy production in 2010 was: Coal- 30 % Natural gal -30% Petroleum (crude oil and natural gas plant liquids)- 19% Nuclear electric power- 10% Renewable energy- 10%. Cost Side of Nuclear Energy Development Nuclear energy requires higher cost for development and maintenance as well. In this regard, Holt (2) contends that the reasons for the 30-year halt in U.S. nuclear plant orders include higher capital costs. Holt further elaborates the construction costs for reactors completed since the mid-1980s remained within $2 to $7 billion, averaging more than $ 3,700 per kilowatt of electric generating capacity- in 2007 dollars. Without any doubt, the higher cost of development would put more pressure over the U.S. economy which is already squeezed by the current waves of financial crisis. Additionally, th e 30-year halt in nuclear plant development clearly highlights the existing concerns over developing or going nuclear for fulfilling energy needs. Safety Side of Nuclear Plants Safety of Nuclear plants has become a burning issue. On the external side, many terrorist organizations such as Al- Qaeda and its associates are putting everything they could to destabilize American economy and people. For their dirty aims, they can go to any extent. Under such conditions and threats, the nuclear safety has become more significant than ever before. On the internal side, Blatt argues that over the next two to three decades, the existing nuclear reactors in U.S. will observe change with improved designs as most existing reactors are receiving twenty-year operating