However, it is very unclear that the series of reforms will truly address the fundamental disequilibrium
and lack of transparency in the country's domestic economy, or the scale of the governance challenges facing the country.
Safieddine's belief extends beyond the PE law into a trust of being able to remedy a more fundamental disequilibrium
: as general agreement goes, banking dwarves the financial markets, and he emphasizes that capital markets are so tiny in Lebanon that they are "negligible".
dollar and in the case of the United States the value of the dollar in terms of gold) pegged at rates that could be adjusted only to correct a "fundamental disequilibrium
" in the balance of payments and only with the IMF's agreement.
dollar, and in the case of the United States, the value of the dollar in terms of gold) pegged at rates that could be adjusted only to correct a "fundamental disequilibrium
" in the balance of payments, and only with the IMF's agreement.
If the US dollar needs to devalue because of fundamental disequilibrium
in the US economy, the problems cannot be fixed by lowering the dollar's value alone.
Policing the Crisis described the long moment of 'corporatism', in which 'consensual' and 'centrist' resolutions of this fundamental disequilibrium
of class relations were attempted, with increasing desperation, until public confidence in these approaches finally failed amidst the events of the 'Winter of Discontent' of 1978-79.
The other type of model is based on a self-fulfilling prophecy emphasizing that speculative attacks do not have to come with fundamental disequilibrium
[Flood and Marion, 1996].
Ghosh presented a theoretical framework to explain the persistent fall of the Mexican peso during 1976-82 and how that triggered a real and fundamental disequilibrium
. This paper also seems to serve as the general background for the section.
The Bretton Woods system also can be understood as a form of contingent rule (or rule with escape clauses).(15) For nonreserve currency countries, the rule was to maintain fixed parities, except in the contingency of a fundamental disequilibrium
in the balance of payments, and to use monetary and fiscal policy to smooth out short-run disturbances.
The Articles formally permitted adjustment of a currency's par value only if the country's balance of payments was in "fundamental disequilibrium
." This was an imprecise concept, but it came to mean that exchange rates would be adjusted only as a last resort and only in conjunction with other policies to redress the disequilibrium.