The advantages of such a system include the credibility of the economic policy regime. Such credibility results from the high political cost of altering the exchange rate. In the past, boards have ...

Central bank will keep intervening in the forex market through dollar buy-sell and a currency band will be maintained ...

Countries that have frequent parity changes--while notionally maintaining a peg--are unlikely to reap the full anti-inflationary benefits of a fixed exchange rate regime. The choice of exchange rate ...

The U.S. is unique in that people everywhere wish to hold greenbacks, so it collects seigniorage on the whole world. The Federal Reserve estimates that foreigners hold more than $1 trillion, or 45% of ...