This paper introduces a theoretical framework for liquidity management under fixed exchange rate arrangement ... The theoretical framework is empirically tested based on the estimate of “offset” ...

This type of model is showm to generate a “devaluation bias” which undermines the credibility of a fixed exchange rate. The effect of reputational factors, signaling considerations, and joining a ...

After all, are we living in a world of floating rates or fixed rates ... failures due to the dual role of the exchange rate affecting financial asset markets and the tradable goods markets.

The US refused to exchange US dollars for gold, marking the end of the Bretton Woods system. After months of negotiations, the Smithsonian Agreement was ratified and had established a new set of fixed ...