{"product_id":"how-do-alternative-exchange-rate-regimes-operate-and-how-can-they-be-identified-von-malte-vieth","title":"How do alternative exchange rate regimes operate and how can they be identified?","description":"\u003cp\u003eSeminar paper from the year 2013 in the subject Economics - Foreign Trade Theory, Trade Policy, grade: 1,7, Johannes Gutenberg University Mainz, course: Seminar International Economic Policy, language: English, abstract: The choice of the exchange rate regime is essentially for a country. According to the\u003c\/p\u003e\u003cp\u003eimpossible trinity principle a country desires a fixed exchange rate, an autonomous\u003c\/p\u003e\u003cp\u003emonetary policy and full capital mobility simultaneously. Unfortunately only two\u003c\/p\u003e\u003cp\u003efeatures at the same time can be realized. A fixed exchange rate has two major\u003c\/p\u003e\u003cp\u003ebenefits compared to a floating exchange rate. If stable it makes the trade of goods\u003c\/p\u003e\u003cp\u003eand assets between countries easier and less costly. Additionally a fixed exchange\u003c\/p\u003e\u003cp\u003erate may improve monetary policy discipline as expansionary monetary policy is\u003c\/p\u003e\u003cp\u003eless available to maintain a fixed exchange rate. This may lead to a lower inflation\u003c\/p\u003e\u003cp\u003erate in the long run. But the major disadvantage is that a fixed exchange rate regime\u003c\/p\u003e\u003cp\u003eremoves the possibility to use monetary policy in a flexible way to deal with\u003c\/p\u003e\u003cp\u003erecessions (Abel, Bernanke and Croushore, 2011). Therefore many countries\u003c\/p\u003e\u003cp\u003echoose an exchange rate regime between both extreme cases (fixed or flexible\u003c\/p\u003e\u003cp\u003eexchange rate regime). In the second chapter I will give some important theoretical\u003c\/p\u003e\u003cp\u003ebackground concerning exchange rate regimes. In particular I will explain different\u003c\/p\u003e\u003cp\u003etypes of exchange rate regimes and show the difference between ¿de jure¿ and ¿de\u003c\/p\u003e\u003cp\u003efactö exchange rate regimes. In the last part of the second chapter I will illustrate\u003c\/p\u003e\u003cp\u003ethe complex exchange rate regime of the European Union. In the third chapter I will\u003c\/p\u003e\u003cp\u003eshow the toolbox of a central bank to influence its exchange rate. In the last part of\u003c\/p\u003e\u003cp\u003ethe third chapter I will show briefly the different instruments using the example of\u003c\/p\u003e\u003cp\u003eSwitzerland in the recent past. In my conclusion I will try to answer the question\u003c\/p\u003e\u003cp\u003e¿how can different exchange rate regimes being identified¿.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783656632504\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783656632504","offer_id":39430605242461,"sku":"9783656632504","price":18.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/8a255a9b-6515-4f6f-b220-09fee39cc788.jpg?v=1778130572","url":"https:\/\/shop.autorenwelt.de\/products\/how-do-alternative-exchange-rate-regimes-operate-and-how-can-they-be-identified-von-malte-vieth","provider":"Autorenwelt Shop","version":"1.0","type":"link"}