This discussion is based on the theory of optimal currency areas, which stipulates that real shocks (for example, terms of trade shocks) are better accommodated through flexible exchange rates, and ...

The exchange rate of a floating currency is determined by supply and demand on the international currency exchange market known as the forex. Fixed exchange rates are pegged to another currency or ...

This brief considers the choice of an appropriate exchange rate regime—floating, managed or fixed arrangements—for individual countries in light of important changes that have taken place in the world ...

There is no greater turmoil in the “Seely household” than when it comes to converting funds and trying to determine the ...

Interest rate swaps are financial contracts that allow two parties to trade future cash flows from interest-bearing financial ...