Moving to a Flexible Exchange Rate How, When, and How Fast? |
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| Author:
| Karacadag,
Fernandez, Gilda
Duttagupta, Rupa |
| Series title: | Economic Issues Ser. |
| ISBN: | 978-1-58906-542-0 |
| Publication Date: | Sep 2006 |
| Publisher: | International Monetary Fund
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| Book Format: | Paperback |
| List Price: | USD $5.00 |
Book Description:
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A growing number of countries are adopting flexible exchange rate regimes because flexibility offers more protection against external shocks and greater monetary independence. Other countries have made the transition under disorderly conditions, with the sharp depreciation of their currency during a crisis. Regardless of the reason for adopting a flexible exchange rate, a successful transition depends on the effective management of a number of institutional and operational issues. The...
More DescriptionA growing number of countries are adopting flexible exchange rate regimes because flexibility offers more protection against external shocks and greater monetary independence. Other countries have made the transition under disorderly conditions, with the sharp depreciation of their currency during a crisis. Regardless of the reason for adopting a flexible exchange rate, a successful transition depends on the effective management of a number of institutional and operational issues. The authors of this Economic Issue describe the necessary ingredients for moving to a flexible regime, as well as the optimal pace and sequencing under different conditions.