Exchange Rate Mechanism Quotes

The euro is a hybrid of a fixed exchange-rate regime, like the 1980s ERM or the 1930s gold standard, and a state currency.

I am sure the euro will oblige us to introduce a new set of economic policy instruments. It is politically impossible to propose that now. But some day there will be a crisis and new instruments will be created.

Since we don't use any type of currency manipulation schemes - we have a floating exchange market - we are very glad to consider any type of process that would stabilize the Mexican peso.

Most economists use 'fixed' and 'pegged' as interchangeable or nearly interchangeable terms for exchange rates.

What we're trying to look for is a process that is not responding to political pressures, but one that is responding to economic reality, because I do believe ... that it's in the best interest of the Chinese people to allow a market-based currency.

The problem is that, in a world of floating exchange rates, as Italy was before the euro, if one country is subjected to a shock which requires it to cut wages, it cannot do so with a modern kind of control and regulation system. It is much easier to do it by letting the exchange rate change. Only one price has to change, instead of many.

Liberal economists conceive of societies as black boxes connected by exchange rates; as long as exchange rates are correct, what goes on inside the black box is regarded as not very important.

We are now preparing for the reform of the yuan's exchange rate system. For such reforms to take place, we need good economic conditions... and we need to do it under tight control.

To the best of my knowledge, there has never been a monetary union, putting out a fiat currency, composed of independent states.

Germany's problem, in part, is that it went into the euro at the wrong exchange rate that overvalued the deutsche mark.