Reserve Currency System - Fixed exchange rate systems like these are based on a reserve currency system in which N countries (1, 2, …, N) participate. The Nth country, called the center country, provides the reserve currency, which is the base or center currency to which all the other countries peg.
Cooperative Arrangements - One form of cooperation is based on mutual agreement and compromise between center and noncenter countries on the setting of interest rates. The other form of cooperation is based on mutual agreements about adjustments to the levels of the fixed exchange rates themselves.
Devaluation - an official lowering of the value of a country's currency within a fixed exchange rate system
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