The inflation benefit from pegged regimes may seem at odds with the ... Compared with pegged regimes, floating exchange rates are at less risk for overvaluation, but they also fail to deliver low ...

The main decision is whether exchange rates are to be fixed or floating. A floating rate allows the price of a currency to move based on market conditions. If many people from other countries want ...

Many recent converts to floating have opted for an inflation-targeting approach ... They argue that, with respect to asset markets, a country obtains essentially no benefit from exchange rate ...