The U.S. and many other major economies remain stuck in sluggish ... enormous currency appreciation was a chronically overvalued exchange rate and two decades of deflation in Japan.

This brief considers the choice of an appropriate exchange rate regime—floating, managed or fixed ... areas do not conform to the usual criteria for an optimum currency area. The past decade has ...

In recent years, fixed or pegged exchange rates ... Foreign and domestic economic shocks may move the nominal exchange rate away from the official rate. Defending an overvalued exchange rate peg then ...