All exchange rate regimes create difficulties. But, painful experience has now reinforced the theoretical presumption against adjustable pegs in a world of capital account convertibility. Liberalization of the capital account has forced countries away from the middle ground toward the polar option of free-floating exchange rates, with monetary autonomy, or hard pegs, without it.
Get full access to this article
View all access options for this article.
References
1.
European Union. 1999. Title VII, economic and monetary policy, article 111.2. Selected instruments taken from the treaties. Retrieved from http: //europa.eu.int/eur-lex/en/treaties/ dat/treaties_en.pdf.
2.
Fischer, Stanley.2001. Exchange rage regimes: Is the bipolar view correct ? Available from www.imf.org. January.
3.
Greenspan, Alan.1998. Implications of recent Asian developments for community banking. Statement by Federal Reserve Board chairman before the Annual Convention of the Independent Bankers Association of America. Retrieved from http://www.federalreserve.gov/boarddocs/speeches/1998/19980303.htm . 3 March.
4.
How to target exchange rates. 1998. Financial Times, 20 November.
5.
International Monetary Fund (IMF).1999. Chronic unemployment in the euro area: Causes and cures. In World economic outlook. Washington, DC: International Monetary Fund. May.
6.
Krugman, Paul.1998. Will Asia bounce back? Retrieved from http://web.mit.edu/krugman. March.
7.
McKinnon, Ronald, and Kenichi Ohno.1997. Dollar and yen: Resolving conflict between the United States and Japan. Cambridge, MA: MIT Press.
8.
McKinnon, Ronald, and Kenichi Ohno.1998. The real yen worry. Financial Times, 26 June.
9.
Radelet, Steven, and Jeffrey Sachs.1998. The East Asian financial crisis: Diagnosis, remedies, prospects. In Brookings papers on economic activity , vol. 1, edited by William C. Brainard and George L. Perry , 1-90. Washington, DC: Brookings Institution.
10.
Rubin, Robert.1999a. Remarks by Treasury Secretary Robert Rubin before the World Economic Conference, Davos. Retrieved from http://www.treas.gov/press/releases/pr2920.htm. 30 January.
11.
Rubin, Robert.1999b. Statement by treasury secretary Robert Rubin to the IMF Interim Committee. Retrieved from http://www.treas.gov/press/releases/pr3109.htm . 27 April.
12.
Summers, Larry.1998. Remarks by deputy treasury secretary before the International Monetary Fund. Retrieved from http://www.treas.gov/press/releases/pr2286.htm. 9 March.
13.
Summers, Lawrence H.1999. Roots of the Asian crises and the road to a stronger global financial system. Remarks by deputy secretary of the treasury to the Institute of International Finance. Retrieved from http://www.treas.gov/press/releases/pr3102.htm. 25 April.
14.
Wolf, Martin.1998. Capital punishment. Financial Times , 17 March.
15.
—. 1999a. Capital punishment. Financial Times, 5 May.
16.
—. 1999b. Off target. Financial Times, 3 February.
