Fixed or Flexible? Getting the Exchange Rate Right in the 1990s
Economic Issues, April 17, 1998
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- Fixed or Flexible? Getting the Exchange Rate Right in the 1990s
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Bibliographic details
- Authors: Jahangir Aziz, Francesco Caramazza
- Published: April 17, 1998
- Series: Economic Issues
- DOI: https://doi.org/10.5089/9781455220038.051
Overview
- Authors: Jahangir Aziz, Francesco Caramazza
- Publication date: April 17, 1998
- Core focus: Examination of the recent evolution of exchange rate policies in the developing world, including transitions from fixed/"pegged" exchange rates to "managed floating" currencies.
- Scope: How economies perform under different exchange rate arrangements; issues in the choice of regime; challenges posed by increasing capital mobility, especially when banking sectors are inadequately regulated or supervised.
Key findings and analytical themes
- Transition dynamics:
- Many countries have moved from fixed or "pegged" exchange rates to "managed floating" currencies.
- Performance under arrangements:
- The paper discusses how economies perform under different exchange rate arrangements.
- Choice of regime:
- The work analyzes issues involved in selecting an exchange rate regime.
- Challenges highlighted:
- Increasing capital mobility in a world context.
- Particular vulnerability when banking sectors are inadequately regulated or supervised.
Topics and keywords covered
- Subject headings: Conventional peg, Currencies, Exchange rate arrangements, Exchange rate flexibility, Exchange rates, Foreign exchange, Money
- Keywords (as listed): can exchange rate flexibility, Conventional peg, Currencies, currency market turmoil, EI, exchange rate, exchange rate appreciation, exchange rate arrangement, Exchange rate arrangements, Exchange rate flexibility, exchange rate need, exchange rate volatility, Exchange rates, rate, single currency, turmoil in Southeast Asia, Western Hemisphere