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

Author

Listed:
  • Mr. Jahangir Aziz
  • Mr. Francesco Caramazza
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.

Suggested Citation

  • Mr. Jahangir Aziz & Mr. Francesco Caramazza, 1998. "Fixed or Flexible? Getting the Exchange Rate Right in the 1990s," IMF Economic Issues 1998/002, International Monetary Fund.
    • Handle: RePEc:imf:imfeci:1998/002
    as

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