To put the point graphically, if exchange rate arrangements lie along a line connecting hard pegs like currency unions, currency boards, and dollarization on the left, with free floating on the right, the intent of the bipolar view is not to rule out everything but the two corners, but rather to pronounce as unsustainable a segment of that line representing a variety of soft pegging exchange rate arrangements.
[italics in the original] … For countries open to international capital flows, it [the bipolar view] includes as sustainable regimes both very hard pegs and a variety of floating rate arrangements, including managed floats. For countries not yet open to international capital flows, it includes the full gamut of exchange rate arrangements.