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floating exchange rate
(redirected from "fear of floating")

    Also found in: Wikipedia 0.02 sec.
Floating exchange rate
A country's decision to allow its currency value to change freely. The currency is not constrained by central bank intervention and does not have to maintain its relationship with another currency in a narrow band. The currency value is determined by trading in the foreign exchange market.
floating exchange rate
An exchange rate between two currencies that is allowed to fluctuate with the market forces of supply and demand. Floating exchange rates tend to result in uncertainty as to the future rate at which currencies will exchange. This uncertainty is responsible for the increased popularity of forward, futures, and option contracts on foreign currencies. Also called flexible exchange rate. Compare fixed exchange rate.


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? Mentioned in ? References in periodicals archive
 
The combination of a view that pegs do not really peg with the "fear of floating" view that floats do not really float generates the conclusion that exchange rate regimes are, in practice, unimportant for the behavior of the exchange rate.
International Finance and Macroeconomics by NBER Reporter
are concerned about exchange rate volatility, the so called "fear of floating" (Calvo and Reinhart, 2002).
Do excess returns vary across de facto exchange rate regimes? A ... by Abdelbaky, Mahmoud; Sylwester, Kevin / Indian Journal of Economics and Business
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