Most of the literature on exchange rate regimes has focused on the                  developed countries. Since the recent crises in emerging markets, however, attention                  has shifted to the choice of exchange rate regimes for developing countries,                  especially those that are more integrated into the world capital markets. In Too                  Sensational, W. Max Corden presents a systematic and accessible overview of the                  choice of exchange rate regimes. Reviewing many types of regimes, he shows how the                  choice of an exchange rate regime is related to both fiscal policy and trade                  policy.Building on the theory of optimum currency areas, Corden develops an analytic                  framework of three approaches (nominal anchor, real targets, and exchange rate                  stability) and three polar exchange rate regimes (absolutely fixed, pure floating,                  and fixed but adjustable). He considers all other regimes to be mixtures of two or                  three of the polar regimes.Beginning with theory and later turning to case studies                  of countries in Asia, Europe, and Latin America, Corden focuses on how economies                  react to negative and positive shocks under various exchange rate regimes. He                  examines in particular the Asian and Latin American currency crises of the 1990s. He                  concludes that although "too sensational" crises have discredited fixed but                  adjustable regimes, the extremes of absolutely fixed regimes or pure floating                  regimes need not be chosen.

Too Sensational: On the Choice of Exchange Rate Regimes (Ohlin Lectures) PDF

The list of books you might like