I. Main contents of the Jamaica Accord
1, reform of floating exchange rate system. Jamaica Accord formally confirmed the legalization of floating exchange rate system, and admitted that fixed exchange rate system and floating exchange rate system coexist, and member countries can freely choose exchange rate system. At the same time, the IMF continues to strictly supervise the currency exchange rate policies of various countries, coordinate the economic policies of member countries, promote financial stability, and narrow the range of exchange rate fluctuations.
2. Promote the non-monetization of gold.
The agreement made a decision to gradually withdraw gold from international loans. It also stipulates that: the gold clause and the official price of gold are abolished, and the central banks of member countries can freely trade gold at market prices; Cancel the requirement of using gold to settle claims and debts among member countries and between member countries and the IMF, and the IMF will gradually deal with the gold it holds.
3. Enhance the role of SDR.
It is mainly to improve the international reserve status of SDR, expand its scope of use in the IMF's general business, and revise the relevant provisions of SDR in a timely manner.
4. Increase the fund share of member countries.
The fund share of member countries increased from the original SDR 29.2 billion to SDR 39 billion, an increase of 33.6%.
5. Expand credit lines and increase financing for developing countries.
II. Operation of the Jamaican System
1. Diversification of reserve currencies.
Compared with the situation that the international reserve structure is single and the dollar position is very prominent under the Bretton Woods system, the international reserve is diversified under the Jamaican system. Although the dollar is still the dominant international currency, its position has been obviously weakened, and its monopoly on foreign exchange reserves no longer exists. With the economic recovery and development of the two countries, the Deutsche Mark (now Deutsche Mark) and the Japanese yen have become important international reserve currencies. At present, the international reserve currency has become increasingly diversified, and Ecuador has also been replaced by the euro, which is likely to become a new international reserve currency to compete with the US dollar.
2. Diversification of exchange rate arrangements.
Under the Jamaican system, floating exchange rate system and fixed exchange rate system coexist. Generally speaking, most developed industrial countries float independently or jointly, but some countries peg their own currency baskets. For developing countries, most of them are pegged to an international currency or a basket of currencies, and few float independently. Different exchange rate systems have their own advantages and disadvantages. Floating exchange rate system can provide greater activity space and independence for domestic economic policies, while fixed exchange rate system can reduce the exchange rate risks that domestic enterprises may face and facilitate production and accounting. Countries can weigh the advantages and disadvantages according to their own economic strength, openness, economic structure and a series of related factors.
3. Adjust the balance of payments through various channels. Mainly includes:
(1) Apply domestic economic policies.
As an organic part of a country's macro-economy, the balance of payments is bound to be affected by other factors. A country often uses domestic economic policies to change domestic demand and supply, thus eliminating the imbalance of international payments. For example, in the case of capital account deficit, we can attract foreign capital inflows and make up for the gap by raising interest rates and reducing currency issuance. It should be noted that when fiscal or monetary policies are used to adjust the external balance, they are often limited by the "Meade conflict". While achieving the balance of payments, other policy objectives, such as economic growth and fiscal balance, have been sacrificed. Therefore, the internal policy should be coordinated with the exchange rate policy so as not to lose sight of one thing and lose sight of another.
(2) Using exchange rate policy.
Under the floating exchange rate system or adjustable pegged exchange rate system, exchange rate is an important tool to adjust the balance of payments. Its principle is that the current account deficit tends to decline, the local currency tends to fall, the competitiveness of foreign trade increases, exports increase, imports decrease, and the economic account deficit decreases or disappears. On the contrary, when there is a current account surplus, the appreciation of the local currency will weaken the competitiveness of import and export commodities, thus reducing the current account surplus. In the actual economic operation, the adjustment function of exchange rate is restricted by "Marshall-Lerner condition" and "J curve effect", and its function is often disappointing.
(3) International financing.
Under the Bretton Woods system, this function is mainly completed by the IMF. Under the Jamaican system, the lending capacity of the International Monetary Fund has been improved. More importantly, with the outbreak of the oil crisis and the rapid development of the European money market, countries have gradually turned to the European money market and used the more favorable loan conditions in this market to finance funds and adjust the balance of payments.
(4) Strengthen international coordination.
This is mainly reflected in the following aspects: ① With the IMF as a bridge, governments of all countries have reached a * * * understanding and understanding on international financial issues through consultation, and * * * will jointly safeguard the stability and prosperity of the international financial situation. ② The role of the emerging G-7 summit. The seven western countries reached a consensus through many meetings and jointly intervened in the international financial market many times, subjectively for their own interests, but objectively, it also promoted the stability and development of the international financial economy.
Third, the evaluation of the Jamaican system.
1, the positive role of Jamaica system:
(1) The diversified reserve structure has got rid of the rigid relationship between currencies of various countries under the Bretton Woods system, provided a variety of repayment currencies for the international economy, and largely solved the contradiction that the reserve currency is in short supply;
(2) Diversified exchange rate arrangements adapt to diversified economies at different levels of development, providing flexibility and independence for countries to maintain economic development and stability, and at the same time helping to maintain the continuity and stability of domestic economic policies;
(3) The parallel of multiple channels makes the adjustment of international solicitation more effective and timely.
2. Defects of Jamaican system:
(1) Under the diversified international reserve pattern, the issuing countries of reserve currencies still enjoy many benefits such as "seigniorage tax", and at the same time, under the diversified international reserve, there is a lack of unified and stable monetary standards, which in itself may cause international financial instability;
(2) The exchange rate fluctuates greatly and the exchange rate system is extremely unstable. One of its negative effects is to increase the foreign exchange risk, thus inhibiting international trade and investment activities to a certain extent, especially for developing countries;
(3) The balance of payments adjustment mechanism is not perfect, and the existing channels have their limitations. The Jamaican system has not eliminated global imbalances.