Fixed or Flexible? Getting the Exchange Rate Right in the 1990s

Jahangir Aziz and Francesco Caramazza

No 1998/002, IMF Economic Issues from International Monetary Fund

Abstract: This paper examines the recent evolution of exchange rate policies in the developing world. It looks at why so many countries have made a transition from fixed or "pegged" exchange rates to "managed floating" currencies. It discusses how economics perform under different exchange rate arrangements, issues in the choice of regime, and the challenges poised by a world or increasing capital mobility, especially when banking sectors are inadequately regulated or supervised.

Keywords: EI; exchange rate; can exchange rate flexibility; rate; currency market turmoil; single currency; exchange rate need; exchange rate appreciation; exchange rate volatility; turmoil in Southeast Asia; exchange rate arrangement; Exchange rates; Exchange rate arrangements; Exchange rate flexibility; Currencies; Conventional peg; Western Hemisphere (search for similar items in EconPapers)
Pages: 25
Date: 1998-04-17
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Citations: View citations in EconPapers (29)

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