Exchange Rate Choices.

After a quarter of a century of floating among the major currencies, exchange rate policy is still source of vexation, and the appropriate choice is by no means clear. Should a country allow its currency to float, subject perhaps to exchange market interventionl from time to time? Or should it fis its currency to some other currency or currencies, and if so to which one(s)? This paper will suggest that the responses that have been given by many economists over the past few decades are ineadequate and possibly quite poor advice to decision-makers.