European Dual Exchange Rates

Nancy P. Marion

Chapter 10 in Parallel Exchange Rates in Developing Countries, 1997, pp 359-386 from Palgrave Macmillan

Abstract: Abstract In the early 1970s, many European countries faced a difficult predicament. Uniform fixed exchange rates allowed speculative capital movements to deliver large international reserve fluctuations, yet abandoning fixed exchange rates in favor of flexible rates could possibly deliver large exchange rate fluctuations that would disrupt trade. Between 1971 and 1974, several European countries, such as Belgium, France, and Italy, used a dual exchange market as a temporary middle-ground between the fixed and flexible rate extremes. Such an arrangement involved the formal establishment of separate exchange markets, with separate exchange rates, for current and capital account transactions.

Keywords: Exchange Rate; Interest Rate; Exchange Market; Trade Credit; Foreign Asset (search for similar items in EconPapers)
Date: 1997
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:978-1-349-25520-7_11

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349255207

DOI: 10.1007/978-1-349-25520-7_11

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 ().