Exchange Rate Arrangements In 1944, The International Monetary Fund (IMF) was created to encourage exchange stability (Radebaugh, Gray, & Black, 2006, p.351). ... Fixed Exchange Rate Policy According to the United States Agency of International Development (2011), "A fixed exchange rate regime might better be called, the fix the exchange rate (foreign currency price of the national currency) and, if necessary, devalue (lower the foreign currency price of the national currency) when it becomes too difficult to maintain the rate regime". ... The International Monetary Fund can tighten ...

• Word Count: 1468
• Approx Pages: 6
• Has Bibliography
• Grade Level: Undergraduate