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In a famous paper entitled Fear of Floating (Calvo and Reinhart, 2002, Quarterly Journal of Economics, vol.67, pp. 379-408), the authors found that most governments
In a famous paper entitled "Fear of Floating" (Calvo and Reinhart, 2002, Quarterly
Journal of Economics, vol.67, pp. 379-408), the authors found that most governments
which claimed to have floating currencies did not actually have them. That is
particularly the case with developing countries, most of which have managed their
currencies to follow a major world currency.
Discuss why that may be the case.
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