4.2 The case for fixed exchange rates
2025年09月26日
4.2 The case for fixed exchange rates
The case for fixed exchange rates usually has two sides; on the one hand, there are some positive arguments in favor of fixed exchange rates, and on the other, there are arguments against floating exchange rates.One needs to be careful with this approach because arguments against floating rates are not necessarily arguments in favor of fixed rates; they may well constitute arguments for some degree of exchange rate managements rather than for fixed parities.In this spirit, let us consider both the positive arguments in favor of fixed rates and the arguments against floating rates.