Author Type

Graduate Student

Date of Award

1989

Document Type

Thesis

Publication Status

Version of Record

Submission Date

October 2026

Thesis/Dissertation Advisor [Chair]

Redmon, Milton

Abstract

This thesis examines two alternative solutions for alleviating the exchange rate risk associated with increased exchange rate volatility following the adoption of a floating rate regime in 1973. Evidence concerning the potential deleterious effects of volatile exchange rates on trade and investment is examined. Studies which utilize models for predicting exchange rate movements in order to manage exchange rate risk are reviewed. Modeling is found to offer some explanatory but little predictive ability primarily because expectations enter the model as a key determinant of short-run fluctuations. Evaluation of the alternative solution, which would replace floating rates with a fixed or semi-fixed system, concludes that present theoretical and empirical knowledge does not permit a definitive judgment on the workability and on the potential costs relative to the expected benefits of decreased exchange rate volatility under fixed or semi-fixed system.

Extent

112 p.

Comments

College of Business|FAU Electronic Theses and Dissertations Collection|Thesis (M.A.)--Florida Atlantic University, 1989.|College of Business

Identifier

FADT14528

Format

pdf

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