Occasional Papers

Exit Strategies: Policy Options for Countries Seeking Exchange Rate Flexibility

Author/Editor:

Barry J. Eichengreen ; Inci Ötker ; A. J Hamann ; Esteban Jadresic ; R. B. Johnston ; Hugh Bredenkamp ; Paul R Masson

Publication Date:

August 12, 1998

Summary:

In a world of increasing capital mobility and broadening and more diversified trade, many (but not all) developing and transition economies are likely to find it desirable to move from relatively fixed exchange rate regimes to regimes of greater exchange rate flexibility. This paper suggests why, and considers strategies that countries may consider for such a move. It reinforces this discussion with a review of experience from teh past two decades with alternative exchange rate regimes. The paper also identifies policies that can facilitate the transition to greater exchange rate flexibility for countries that wish to pursue this option.

Series:

Occasional Paper No. 1998/014

Subject:

Conventional peg Currencies Exchange rate arrangements Exchange rate flexibility Exchange rates Foreign exchange Money