A description of the exchange-rate mechanism of the European Monetary System and a discussion of some problems with the mechanism that apply to the operation of any target-zone system for maintaining exchange rates.

U.S. firms are facing tough international competition, and the U.S. trade deficit has grown to a level that some find alarming. Why doesn't the United States respond by easing monetary policy to lower the dollar's exchange rate and reduce the price of U.S. goods in foreign markets? This...

China's recent devaluation and liberalization of its exchange-rate policies will, at best, have only a temporary impact on its trade competitiveness with the United States. The type of exchange-rate regime that a country adopts matters little for its long-term international competitiveness. In...

Since the early 1990s, international banks have been offering nondeliverable forward (NDF) contracts to clients who need to hedge exposures in currencies of emerging-market economies. Many also use the exchange rate on these contracts as a best guess of where the emerging-market currency is...

A nontechnical guide to exchange rates that discusses the role of inflation and monetary policy in determining exchange rate movements, uses balance-of-payments concepts to illustrate the economic role of the real exchange rate, and examines the crucial role of expectations.

An examination of proposals to improve the international monetary system by creating central exchange rates and a discussion of why such a policy might not be in the best interest of the United States.

An analysis of the wage, productivity, and competitive factors that might prevent Ohio manufacturers from getting full benefit from the sharp drop in the foreign-exchange value of the dollar.

The Japanese auto industry is used as a case in point to illustrate some of the ways in which firms operating in export markets cope with exchange-rate changes.

A discussion of factors that affect determination of the dollar's value in foreign-exchange markets, with an emphasis on various interpretations of the concept of equilibrium.

An analysis of possible effects on the U.S. economy of rapid depreciation of the foreign-exchange value of the dollar, that includes discussion on interest rates, prices, real GNP, and potential problems for the Federal Reserve System.