ABSTRACT
Foreign exchange rate policy in the so-called emerging markets, i.e. in more advanced and integrated transition and developing economies, and its place within the overall framework for monetary policy have been the subject of increasing interest and scrutiny during recent years, prompted by repeated and serious economic problems in many of these countries that were in some way related to currency issues (Flood and Marion 1998; Goldfajn and Valdes 1996; Liargovas 1999; Mishkin 1999; Obstfeld and Rogoff 1995; Mussa et al. 2000).
