Other Article | Vox | July 15, 2013

Pseudo-flexible Exchange-rate Regimes

by Laura Alfaro and Fabio Kanczuk


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.

Keywords: Flexibility; International Markets; managing exchange rates; Currency Exchange Rate;


Alfaro, Laura, and Fabio Kanczuk. "Pseudo-flexible Exchange-rate Regimes." Vox (July 15, 2013).