We develop a simple formal framework to clarify the trade-offs involved in the choice between a fixed and flexible exchange-rate system. We then apply the framework to the CFA Zone countries in Africa, which have maintained a fixed parity with the French Franc since independence. Thanks to the...

This paper estimates the impact of China''s exchange rate changes on exports of competitor countries in third markets, which we call the ""spillover effect"". We use recent theory to develop an identification strategy in which competition between China and its developing country competitors in...

Two aspects of global imbalances - undervalued exchange rates and sovereign wealth funds (SWFs - require a multilateral response. For reasons of inadequate leverage and eroding legitimacy, the International Monetary Fund (IMF) has not been effective in dealing with undervalued exchange rates. We...

This paper estimates the impact of China's exchange rate changes on exports of competitor countries in third markets, which we call the "spillover effect". We use recent theory to develop an identification strategy in which competition between China and its developing country competitors in...