Re: Fundamentals in Currency Markets

[Thad Williamson <thwilliamson@xxxxxxxxxxx>]

I'm no expert in this, but be sure to see Arjun Makhijani's From Global
Capitalism to Economic Justice which has a proposal for reinstituting system
of fixed exchange rates based on actual productivity of labor. Available
from Institute for Energy and Environmental Research, Takoma Park, MD.

Thad


At 09:07 AM 10/10/97 -0700, michael perelman wrote:
>I am working on a new project concerning economic instability.  I want to
>make the point that the foreign exchange markets, especially for currencies
>of advanced capitalist markets, should be relatively stable, according to
>Milton Friedman and his crew; yet they are terribly unstable in the sense
>that they move over extended periods of time with little relationship to
>what would seem to be the fundamentals of the currency values. Froot,
>Kenneth A. and Richard H. Thaler. 1990. "Foreign Exchange." Journal of
>Economic Perspectives, 4: 3 (Summer): pp. 179-92 had a piece along these
>lines.  Does anybody know of anything more solid on this subject.
>Thanks.
>------
>Michael Perelman
>Economics Department
>California State University
>Chico, CA 95929
>michael@xxxxxxxxxxxxxxxxx
>916-898-5321
>916-898-5901 fax
>
>
>
Thad Williamson
National Center for Economic and Security Alternatives (Washington)/
Union Theological Seminary (New York)
212-531-1935
http://www.northcarolina.com/thad