9.3 Emerging markets and regime choices
The 1997-2005 period saw increasing pressures on emerging market countries to choose among more extreme types of exchange rate regimes.The increased capital mobility pressures noted in the previous section have driven a number of countries to choose between either a free-floating exchange rate (as in Turkey in 2002)or the opposite extreme, a fixed-rate regime—such as a currency board (as in Argentina throughout the 1990s and detailed in the following section)or even dollarization (as in Ecuador in 2000).