All exchange rate regimes must deal with the trade-off between rules and discretion as well as between cooperation and independence.

Question

Quizplus · Accepted Answer

All exchange rate regimes face the challenge of balancing the need for explicit rules and predictable outcomes with the flexibility of discretion and the ability to respond to changing economic conditions. Additionally, there is a tension between cooperation among international actors in setting and enforcing exchange rate policies and the desire for independent decision-making by national governments.

All Exchange Rate Regimes Must Deal with the Trade-Off Between