Increasing Stability in the Mix of Exchange Rate Policies

This paper is an examination of the experience of exchange rate policy systems since 1996 and a comparison with the experience of 1978 to 1995. Exchange rate policy has become more stable than it was in the earlier period. In addition, it has become polarized, with almost all countries choosing either a fixed exchange rate régime (especially in low GDP countries) or a floating exchange rate régime (especially in high GDP countries). Limited flexibility exchange rate systems are now unimportant