Exchange Rate Regimes: Is the Bipolar View Correct?

Stanley Fischer

Journal of Economic Perspectives, 2001, vol. 15, issue 2, 3-24

Abstract: The bipolar or two-corner solution view of exchange rates is that intermediate policy regimes between hard pegs and floating are not sustainable. This paper argues that the proponents of the bipolar view have probably exaggerated their point. The right statement is that for countries open to international capital flows, softly pegged exchange rates are crisis-prone and not sustainable over long periods. However, a wide variety of flexible rate arrangements remains possible. Monetary and exchange rate policy in most countries should not and will not be indifferent to exchange rate movements.

JEL-codes: F31 F32 F33 O16 O19 (search for similar items in EconPapers)
Date: 2001
Note: DOI: 10.1257/jep.15.2.3
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (607)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/jep.15.2.3 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:jecper:v:15:y:2001:i:2:p:3-24

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

Journal of Economic Perspectives is currently edited by Enrico Moretti

More articles in Journal of Economic Perspectives from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().