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In recent years, the theory of rules and discretion in monetary policy has fascinated scores of academic economists and policymakers alike. This paper asks whether it can be applied to understand the history of the world monetary system, by focusing on the setup and the experience of the Bretton...
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This paper defines two competing hypotheses on the working of fixed exchange rates. The "symmetry" hypothesis states that every country is concerned with the good functioning of the system, and cannot afford to deviate from world averages. Every country is just left to follow the rules of the...
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