The Exact Timing of the Collapse of an Exchange Rate Regime and Its Impact on the Relative Price of Traded Goods.

This article examines the timing of the collapse of an exchange rate regime and the impact this has on the relative price of traded goods. The authors examine the relationship between a fixed exchange rate, a fixed rate of crawl and a monetary growth rule. They examine several counties that operate on crawling peg rule systems and discuss some of problems associated with these exchange rate systems. They examine how these systems respond to financial crises and the nature of the exchange rules that govern these systems.