publication . Doctoral thesis . Article . 2003

A theory of managed floating

Timo Wollmershaeuser;
Open Access English
  • Published: 01 Jan 2003
  • Country: Germany
Abstract
After the experience with the currency crises of the 1990s, a broad consensus has emerged among economists that such shocks can only be avoided if countries that decided to maintain unrestricted capital mobility adopt either independently floating exchange rates or very hard pegs (currency boards, dollarisation). As a consequence of this view which has been enshrined in the so-called impossible trinity all intermediate currency regimes are regarded as inherently unstable. As far as the economic theory is concerned, this view has the attractive feature that it not only fits with the logic of traditional open economy macro models, but also that for both corner sol...
Subjects
free text keywords: ddc:330, Foreign exchange market, Monetary policy, Fear of floating, Sterilization (economics), Economics, Monetary conditions index, International economics, Monetary economics, Interest rate parity, Exchange rate, Foreign exchange risk
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publication . Doctoral thesis . Article . 2003

A theory of managed floating

Timo Wollmershaeuser;