The Taxonomy of Exchange Rate Regimes: Theoretical and Practical Classification Schemes

Imad A. Moosa

Chapter 4 in Exchange Rate Regimes, 2005, pp 90-120 from Palgrave Macmillan

Abstract: Abstract This chapter deals with the theoretical and practical classification schemes of exchange rate arrangements. What we mean by ‘theoretical classification’ is the theoretical spectrum of exchange rate arrangements falling between the two extremes of perfectly fixed and perfectly flexible exchange rates. The classification is ‘theoretical’ in two senses, the first of which is that any of the classified arrangements may or may not have been tried in practice. In another sense, the classification is ‘theoretical’ because the underlying concepts are abstract and generic, unlike what we find in the ‘practical’ classification. For example, we find the abstract and generic concept of fixed exchange rates in the theoretical classification, but in the practical classification we find the concepts of hard pegs, soft pegs, single-currency pegs and multicurrency pegs, all of which being different kinds of fixed exchange rates that have been tried in practice.

Keywords: Exchange Rate; Monetary Policy; Foreign Exchange; Real Exchange Rate; Exchange Rate Regime (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-0-230-50442-4_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230504424

DOI: 10.1057/9780230504424_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().