Bottomline.(IMF Deputy Managing Director Stanley Fischer believes it is still unclear which foreign exchange mechanism is the best)

Banker, The, February, 1999

IMF Deputy Managing Dir Stanley Fischer said it right when he declared that there is no clear answer to the question of which exchange rate system or monetary regime is the best. A country's economic history, particularly its history of inflation, is crucial in determining the choice of the exchange rate mechanism. However, it is worth considering that recent economic crises have happened in countries with fixed exchange rates such as in Thailand, Korea, Indonesia and Russia. Fischer added that the assumption of exchange rate greatly influenced the economic behavior in these countries.

The foundations of the global economy's financial architecture continue to look shaky. The demise of Brazil's crawling peg exchange rate last month appears to have put paid to the...

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