July 15, 2013
Pseudo-flexible Exchange-rate Regimes
According to the IMF, last decade saw a number of countries actively managing their exchange rates. Is this a good way for emerging economies to protect themselves from the large swings of international markets? This column presents a new "pseudo-flexible" exchange rate policy for emerging economies that is both sustainable and allows for accumulating reserves in conjunction with domestic debt, resulting in low exchange-rate volatility.
managing exchange rates;
Currency Exchange Rate;