Background Note | HBS Case Collection | May 2004 (Revised June 2005)

Exchange Rate Regimes

by Rafael M. Di Tella and Ingrid Vogel


There are many options for a country in the management of monetary policy. At the most basic level is the decision of whether to adopt a fixed or a floating exchange rate. Introduces the economics behind exchange rates and the debate between fixed vs. floating regimes.

Keywords: Currency Exchange Rate; Policy; Macroeconomics; Country;


Di Tella, Rafael M., and Ingrid Vogel. "Exchange Rate Regimes." Harvard Business School Background Note 704-038, May 2004. (Revised June 2005.)