Exchange rate arrangements from extreme to normal

The paper studies theoretical and empirical location dispersion of exchange rate arrangements - rigid-intermediate-flexible regimes, in the context of extreme arrangements of a currency board, dollarization and monetary union, moderate characteristics of intermediate arrangements (adjustable pegs, crawling pegs and target zones) and imperative-process normalization in the form of a managed or clean floating system. It is established that de iure and de facto classifications generate fear of floating and fear of pegging. The impossible trinity under the conditions of capital liberalization and globalization creates a bipolar view or hypothesis of vanishing intermediate exchange rate regimes.