This paper examines Chairman Greenspan's recent claim that central bankers around the world have been operating quot;as ifquot; monetary policy were constrained by gold that backs up reserves. I argue, instead, that central banks in flexible exchange rate regimes operate with an overnight...

The European sovereign debt crisis revived the discussion concerning the pros and cons of exchange rate adjustment in the face of asymmetric shocks. Exit from the euro area is to regain rapidly international competitiveness. Exchange rate stability with structural reforms could be beneficial for...