Pegs and a fixed exchange rate regime

Please begin by visiting the International Monetary Fund's (IMF) then on Periodicals, and then on Finance & Development. After you review the contents of Finance & Development, you find an interesting article in the June 2001 Volume with the title "Exchange Rate Regimes: Is the Bipolar View Correct?" written by Stanley Fischer, the First Deputy Managing Director of the IMF.
Using a Microsoft Word document, answer the following questions that you have identified for your presentation:

1. What is a hard peg? What is a soft peg?

2. What is the difference between pegs and a fixed exchange rate regime?

3. What is dollarization? What is the difference between dollarization, a currency board, and a fixed exchange rate regime? Do you know of any countries that have recently adopted dollarization?

4. What happened to the proportion of IMF members with hard pegs in the 1990s? To the proportion with soft pegs? To the proportion with flexible exchange rate arrangements?

5. What happened to the proportion of developed and emerging market countries with hard pegs in the 1990s? To the proportion with soft pegs? To the proportion with flexible exchange rate arrangements?

6. In the 1990s, a number of countries experienced major international capital market-related crises. At the same time, other countries managed to avoid similar crises. What are the lessons to be drawn from the different experiences of these countries?

7. What does the future hold for foreign exchange brokers?