A review of exchange rate policies and their effect upon nations and firms

Abstract

Discusses the way countries can operate their exchange rate policies. Covers areas such as fixed exchange rates, floating rates and pegged rates, citing the advantages and disadvantages of each. Considers the example of the Euro‐zone countries and the problems they face. Looks at countries which use official dollar‐linked systems. Outlines the three primary types of risk exposure, transaction, economic and translation and presents some examples of how companies have mitigated risk. Briefly looks at rate forecasting. Concludes that a global market could lead to fewer currencies.

Citation

Beth Stanek, M. (2002), "A review of exchange rate policies and their effect upon nations and firms", Management Research News, Vol. 25 No. 4, pp. 19-34. https://doi.org/10.1108/01409170210783179