Exchange Rate Misalignments and Adjustments: Implications for Floating and Fixed Parity Systems
Simon Parker ()
The Manchester School of Economic & Social Studies, 1998, vol. 66, issue 1, 44-58
The author presents a framework for discriminating between fixed and floating exchange rate systems and illustrates it with U.K. data over 1975-90. It is found that a fixed parity system would have been unambiguously preferred to a floating system over this period unless the parity were set sufficiently noncentrally or costs from persistent currency overvaluation were sufficiently high. Under no circumstances could a floating parity have been unambiguously preferred to a fixed parity system. Copyright 1998 by Blackwell Publishers Ltd and The Victoria University of Manchester
References: Add references at CitEc
Citations: Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:manch2:v:66:y:1998:i:1:p:44-58
Access Statistics for this article
More articles in The Manchester School of Economic & Social Studies from University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().