Maintaining fixed exchange rates became increasingly difficult, leading to the collapse of the system when the U.S. suspended the dollar’s convertibility into gold in 1971.

With an exchange rate near 89,000 LBP per 1 USD, the Lebanese pound remains the weakest in the world. Lebanon’s financial collapse, political dysfunction, and runaway inflation have destroyed ...

A drawback of fixed rates is that governments and central banks often have to work against market forces to maintain a currency peg (the policy a country uses to set a fixed exchange rate).

Fixed exchange rates are regulated and maintained by a country's central bank. These rates remain stable and are often tied to a strong currency like the US dollar.

This Economic Letter summarizes the papers presented at the conference “Asset Prices, Exchange Rates, and Monetary Policy” held at Stanford University on March 2-3, 2001, under the joint sponsorship ...

We study alternative approaches to the withdrawal of prolonged unconventional monetary stimulus (“exit strategies”) by central banks in large, advanced economies. We first show empirically that ...