However, since the banking crisis, we have been in a low interest rate regime.
FORBES: Outmoded IT Could "Evaporate" Big Retail Banks - Temenos
She also introduced a floating exchange rate regime and lifted controls on currency trading.
No wonder, then, that emerging-market economies are confused about the right exchange-rate regime to pursue.
To some extent, these troubles can be ascribed to faults in the design of the exchange-rate regime.
But this week Pedro Malan, the finance minister, insisted there would be no change in Brazil's exchange-rate regime.
As with an external deficit, adjustment to a related internal deficit is ultimately the same under any exchange rate regime.
It is desirable to proceed further with reform of the RMB exchange rate regime and increase the RMB exchange rate flexibility.
Yet there were few voices advising Argentina to move to a different exchange-rate regime when a switch might have been less painful.
However, in 1971 under President Richard Nixon, the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime.
But this is not to say that either version of the fix-at-all-costs approach resolves the dilemmas inherent in the choice of exchange-rate regime.
As a result, the consistently high interest rate regime has impacted the growth of companies operating in China, particularly in the construction industry.
FORBES: Caterpillar Feels The Pinch Of High Interest Rates In China
China's monetary policy is also constrained by its rigid exchange-rate regime.
ECONOMIST: Economics focus: A stitch in time saves nine | The
Federal Reserve Chairman Ben Bernanke, who thinks his main job is to create full employment in America, believes that a zero interest rate regime will stimulate investment.
FORBES: Job-Killing Politicians, Modern Military Hawks, And Hapless Central Banks
He proposed, sensibly, that getting China to help combat the global recession--by doing more to stimulate domestic demand--was a more urgent concern to the U.S. than its exchange rate regime.
"We have had a tough year, but through stringent fiscal policy, the new floating exchange rate regime, and extensive structural reforms, we have come out of intensive care unit, " Mr Dervis said.
So far, the effect of the new interest-rate regime has not been great, but it will bite when old loans come due and are rolled over at terms more favorable to borrowers.
Milton Friedman and others reminded us decades ago that such internal adjustments necessary to reverse an external deficit were ultimately the same under a gold standard, flexible exchange rates, or some hybrid exchange rate regime.
The country has made a first move towards changing its exchange-rate regime, which might eventually imply fewer reserves overall as well as some diversification away from dollar reserves, but nothing suggests that it is in any hurry.
But, in the longer run, the breakdown of an exchange-rate regime that did so much to foster growth may force the region's exporters to do things they have long talked about, such as improving education so as to increase productivity and foster domestic technologies.
The Chinese authorities have substantially reduced the level of official intervention in exchange markets since the third quarter of 2011, and China has taken a series of steps to liberalize controls on capital movements, as part of a broader plan to move to a more flexible exchange rate regime.
The paradox is that part of the euro's purpose is to re-empower the European electorate by equipping the EU with a currency strong enough to challenge the rule of the tiny group of foreign-exchange dealers who, in a floating exchange-rate regime, can settle the fate of national economic policies.
Supporters of the new government also say that it will try to make economic reform more palatable to Congress: whereas Mr Mahuad proposed the new exchange-rate regime as part of a package including telecoms and energy privatisation and changes in the labour laws, the new team may try to do things in stages.
At any rate, when the Ceausescu regime was toppled in December 1989 Mr Cioaba was judged to be on the right side and served on the Provisional National Council, the country's frail start towards the democracy it achieved only in 1996.
Today's Scottish government discussion paper on a separate Scottish corporation tax regime reminds us the UK rate was at 52% of profits in the 1970s, before a downward trend to the current rate of 26%, and further cuts to 23% planned by 2014.
"We have too high a domestic rate and we have a thoroughly uncompetitive international tax regime, " Mr. Cutler said on CNBC in January.
This action targets those people that have been using credit cards as a way to purchase at the official rate rather than the black market rate, in effect creating a dual credit card exchange regime.
Stabilizing the dollar-euro exchange rate can only be achieved within a rule-based monetary regime, not by relying on "independent" central banks and finance ministers to coordinate monetary policy to do it.
What's more there are rumours of Polish burglars on the prowl in an area that used to have a crime rate of near zero (ignoring the criminal antics of the East German regime that is).
He told MPs the plans would lead to a "more predictable and transparent regime" that would "ensure a long-term, predictable rate of return".
应用推荐