Does a floating currency buy flexibility?
"The Euro bloc, the Dollar bloc and the Yen bloc: how much monetary policy independence can exchange rate flexibility buy in an interdependent world?"(ECB Working Paper No. 154), (pdf 416 kB).
Fratzscher examines whether moving from a fixed to a floating exchange rate gives a central bank more room to manoeuvre. The data, he argues, says no. He concludes:" What this may indicate is that in an increasingly interdependent world we are
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