COMMENTARY ON CHAPTER 5
Alec Chrystal’s chapter provides a thoughtful evaluation of the literature on various international exchange rate regimes which have existed since the gold standard. The functioning of a globally optimal exchange rate regime should be one of the fundamentally important areas in international monetary economics. However, the complexity of the area under examination does not lend itself to simple conclusions and, at best, one ends up trying to evaluate past and present international monetary regimes in an attempt to specify a future regime which would be superior. Chrystal’s chapter has carried out this task, by examining the various literature themes on exchange rates. The arguments are delivered in a concise way with a degree of simplicity which aids the clarity of the discussion.