When faced with a sudden shock to its economy, a country can opt to implement a dual or multiple foreign exchange rate system. With this type of system, a country has more than one rate at which ...

A PERENNIAL question in international economics—whether in academia or in policy circles—concerns the optimal choice of exchange rate regime. After the breakdown of the Bretton Woods system in the ...

but the road to that system has been tumultuous, shaped by a series of mistrials In 1944, a mechanism for fixed exchange rates was established with the appointment of the US dollar as the ...

This brief considers the choice of an appropriate exchange rate regime—floating, managed or fixed arrangements—for individual countries in light of important changes that have taken place in the world ...