International Finance For Dummies

Chapter 13

Exchange Rate Regimes in the Post–Bretton Woods Era

In This Chapter

Understanding floating exchange rates

Evaluating interventions into floating exchange rates

Examining different types of pegged currencies

Establishing a timeline in a currency crisis

Understanding the role of the IMF in the post–Bretton Woods era

This chapter is all about the exchange rate regimes observed during the post–Bretton Woods era. It uses some of the fundamental knowledge of the exchange rate regimes established in Chapter 11. In this chapter, you look at floating or flexible exchange rate regimes as well as pegged regimes which fall between the two extremes of fixed and flexible exchange rates. Because currency crises can occur under a pegged exchange rate regime, you learn both the reasons and consequences of a currency crisis. Additionally, following the end of the Bretton Woods era, the International Monetary Fund (IMF), a Bretton Woods institution, started providing funds to countries with ...