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How do alternative exchange rate regimes operate and how can they be identified?

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Seminar paper from the year 2013 in the subject Economics - Foreign Trade Theory, Trade Policy, grade: 1,7, Johannes Gutenberg University Mainz, course: Seminar International Economic Policy, language: English, abstract: The choice of the exchange rate regime is essentially for a country. According to theimpossible trinity principle a country desires a fixed exchange rate, an autonomousmonetary policy and full capital mobility simultaneously. Unfortunately only twofeatures at the same time can be realized. A fixed exchange rate has two majorbenefits compared to a floating exchange rate. If sta...