Kicking the Habit: Moving from Pegged Rates to Greater Exchange Rate Flexibility

摘要: Why do governments find it so difficult to move from pegged exchange rates greater rate flexibility? I first establish that there is a problem be solved: are powerful incentives for flexibility deriving changes in the international economic and financial environment but policymakers engineer smooth transition. offer practical suggestions framework under which probability of transition can maximised. Drawing examples recent history, then attempt understand experience selected countries have undertaken this