Moving to a Flexible Exchange Rate

By Rupa Duttagupta, Cem Karacadag, . Gilda C Fernandez

January 9, 2006

Preview Citation

Format: Chicago

Rupa Duttagupta, Cem Karacadag, and . Gilda C Fernandez Moving to a Flexible Exchange Rate, (USA: International Monetary Fund, 2006) accessed November 21, 2024

Also available in: العربية, español, русский, 中文

Summary

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 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.

Subject: Financial markets, Foreign exchange, Money

Keywords: Africa, Basket of currencies, Central bank intervention, Currencies, Currency markets, EI, Equilibrium exchange rate, Exchange rate arrangements, Exchange rate flexibility, Exchange rate misalignment, Exchange rate regime, Exchange rate volatility, Exchange rates, Foreign exchange, Inflation targeting, Market, Market participant, Twoway exchange rate movement, Undervalued exchange rate

Publication Details

Pages:

25
Volume:

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DOI:

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Issue:

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Series:

Economic Issues No 2006/001
Stock No:

EIIEA038
ISBN:

9781589064768
ISSN:

1020-5098

Notes

Also available online in Arabic; Chinese; Russian; Spanish

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