Introduction
This paper will examine independently floating exchange rate arrangements and other conventional fixed peg arrangements in separate sections. Each section contains four parts:
• An examination of the mechanics of the regime;
• A discussion of its advantages and disadvantages;
• An analysis of the experiences of selected nations and how these experiences highlight the strengths and weakness of the system; and
• My final thoughts on that particular exchange rate regime.
1. Conventional fixed peg arrangements
a. Mechanics of conventional fixed peg arrangements
Fixed peg arrangements are recognized by the IMF as a fairly inflexible exchange rate regime. Countries in this category peg their currency, either formally or on a se facto basis, to another currency or a basket of currencies at a fixed rate. Such a basket would contain the currencies of major trading or financial partners which are weighted to reflect distribution of sales, services and cash flows.......

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Title: Critical Comparison Of Fixed And Floating Exchange Rate Mechanisms
Approximate Word Count: 2374
Approximate Pages: 10 (250 words per double-spaced page)

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