I will first examine what I see as the common sense fundamentals of the exchange rate mechanism, noting as I go, the relationship with the current Russian crisis. In my examination, I will take the simplest approach, assuming free trade, unrestricted capital movements and negligible transaction costs. Concluding, I will delve into the quagmire of the Russian situation.
"The Exchange Rate Mechanism and the Ruble Devaluation of 1998,"
University Avenue Undergraduate Journal of Economics:
1, Article 9.
Available at: http://digitalcommons.iwu.edu/uauje/vol3/iss1/9