If the exchange rate is not allowed to move, then the *  Another arrangement that would involve greater commitment to exchange rate stability than just a fixed exchange rate is a currency board. With a currency board, there is a legislated commitment to convert local currency into the currency used as an anchor, say the US dollar, at a fixed exchange rate.
For release on delivery 8:30 a.m. EST November 27, 2018  Data Dependence and U.S. Monetary Policy  Remarks by Richard H. Clarida Vice Chairman Board of Governors of the Federal Reserve System at The Clearing House and The Bank Policy Institute Annual Conference New York, New York  November 27, 2018  I am delighted to be speaking at this annual conference of the Clearing House and the Bank Policy Institute.