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P/F/63. Dissertation: Analysis of exchange rate regimes: fixed or flexible?

WORDS:

9500

DATE:

2002

PRICE:

99.99 GBP

This project adopts a descriptive approach and concentrates on the main issues related with fixed and flexible exchange rate regimes, pros and cons of each regime, and some emerging market experiences. By comparing fixed and flexible exchange rate regimes, we seek to uncover the conditions under which one regime is superior or inferior to other and based on this, we will draw some practical implications. Our analysis uncovers that the choice of intermediate exchange rate arrangements has decreased significantly in the last decade and countries tend to adopt either more hard pegs or flexible exchange rates recently. Another important finding is that the choice of the optimal exchange rate regime depends on the circumstances surrounding a country and it can change with time. The project develops as follows: Section 1 introduces the subject, and summarises the main lessons derived from recent emerging market crises. Section 2 reviews the prior research findings about the use of exchange rate regimes. Section 3 examines the fixed and flexible exchange rate regimes in more detail by the help of selected country experiences. It also clarifies the advantages and disadvantages of each regime, and Section 4 provides some conclusions.

KEYWORDS: f, dissertation, exchange, rate, regimes, fixed, flexible,