Free financial advice

Aside from the complete adoption of another and more credible currency, such as the US dollar, the hardest form of currency peg is the currency board. Here, the central bank relinquishes theoretically all discretion over monetary policy. Capital inflows lead automatically to a proportional reduction in money supply by the “monetary authority”, which replaces the [...]

These four periods have been characterized by a general — although not universal — move from fixed exchange rate systems to convertible pegs and finally to freely floating exchange rates. In the mid-1970s, almost 90% of emerging market countries had some form of fixed/pegged exchange rate. As of the end of 2001, this had fallen [...]