Fixed Rates

There are many varieties of fixed rates, depending on the width of margins, the degree of permanence of the central parity, and the degree of automaticity of monetary adjustment.
It is not useful to consider an exchange rate “peg” without any commitment of monetary policy to maintain that peg, as a fixed exchange rate.

There are many varieties of fixed rates, depending on the width of margins, the degree of permanence of the central parity, and the degree of automaticity of monetary adjustment.