Optimal choice of an exchange rate regime: a critical literature review
AbstractThis paper set out to review the main theories and empirical methods employed in selecting an appropriate exchange rate regime.In order to achieve this, the paper is organized as follows : Section 2 introduces the distinct classifications of exchange regimes(de jure exchange rate regimes versus the facto exchange rate regimes), and the different theoretical approaches which illustrate how an optimal exchange rate regime is determined . Despite their initial popularity, the theoretical considerations have not escaped criticism.Section 3 reviews the criticism of these theories.A conclusion is provided in Section 4.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 43907.
Date of creation: 17 Jan 2013
Date of revision: 19 Jan 2013
Keywords : Exchange rate regime; the structural approach; credibility; flexibility; the bipolar view;
Find related papers by JEL classification:
- A30 - General Economics and Teaching - - Multisubject Collective Works - - - General
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