English, Article edition: The 1971 Flotation of the Mark and the Hedging of Commercial Transactions Between the United States and Germany: Experiences of Selected U.S Non-Banking Enterprises Norman S Fielke

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/173675
Physical Description
  • article
Language
  • English

Edition details

Title
  • The 1971 Flotation of the Mark and the Hedging of Commercial Transactions Between the United States and Germany: Experiences of Selected U.S Non-Banking Enterprises
Author
  • Norman S Fielke
Physical Description
  • article
Notes
  • According to a questionnaire survey, the forward-exchange market easily accommodated the demand of U.S. firms for forward cover of transactions with German firms during the 1971 floatation of the mark.. The U.S. firms employed a variety of hedging techniques.The recent experiments with quasi-floating exchange rates have produced new evidence on some old questions about exchange-rate flexibility. One of these questions is whether substantial flexibility disrupts international trade by stimulating more demand for forward-exchange cover than the market can easily satisfy.1For affirmative answers to this question, see the following: H.S. Houthakker, “Exchange Rate Adjustment,” in U.S. Congress, Subcommittee of the Joint Economic Committee, Factors Affecting the United States Balance of Payments, 87th Cong., 2d. sess., Washington, 1962, pp. 292–93: Robert V. Rossa in The Balance of Payments: Free Versus Fixed Exchange Rates, by Milton Friedman and Robert V. Rossa (Washington, D.C.: American Enterprise Institute for Public Policy Research, 1967), pp. 39–41; and Giuliano Pelli, “Why I Am Not in Favor of Greater Flexibility of Exchange Rates,” in Approaches to Greater Flexibility of Exchange Rates, ed. by Geroge N. Halm (Princeton, N.J.: Princeton Univ. Press, 1970), pp. 203–08. Those who answer this question in the affirmative usually reason along the following lines. Substantial exchange-rate flexibility leads business management to expect greater exchange-rate variations. Therefore, management seeks to cover more of its foreign-exchange explosure (i.e., seeks to “insure” against the greater exchange rate risk by purchasing or selling foreign currency forward. © 1973 JIBS. Journal of International Business Studies (1973) 4, 43–59
  • RePEc:pal:jintbs:v:4:y:1973:i:1:p:43-59
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment