Revue d'ECONOMIE et de MANAGEMENT
Volume 15, Numéro 1, Pages 187-200
2016-06-01

Dilemma Of Exchange Rate Regime Choice: A Survey Of The Literature And The Practice



Authors : Rechache Abbassia .

Abstract

This paper reviews the theoretical and empirical literature on the optimal choice of exchange rate regime. It includes three sections: The First, Taxonomy of Exchange Rate Regimes and the discrepancy between declared and actual regime (de jure and de facto); The Second, the different approaches of the exchange regime choice; And the third, analysis of the evolution exchange rate regimes in recent years, paying particularly attention to two new proposals exchange rate regimes: the Managed Floating Plus (MFP) and the Basket, Band and Crawling Peg (BBC). To conclude there is no consensus on how to select an appropriate exchange rate regime and there will be continuous revisions of theories and empirical results.

Keywords

Exchange rate , regime, De jure, de facto, appropriate

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