July 2nd, 2009 () Crisis › admin › Comments Off
The type of exchange rate regime is important for normal market trading conditions, but it is especially important for abnormal periods of market stress that may lead ultimately to a “currency crisis”. In the wake of the emerging market crises in Mexico (1994–1995), Asia (1997–1998), Russia (1998), Brazil (1999) and Turkey (2001), considerable effort has [...]
July 1st, 2009 () Exchange rates › admin › Comments Off
Up to now, this blog has largely focused on exchange rate regime theory. This post deals with how the choice of exchange rate regime actually affects currency market practitioners in practice. As the exchange rate regimes of both developed and emerging markets are still evolving, it is difficult to find definitive answers. That said, based [...]