“Thus the new language of speculative attacks, multiple equilibria and moral hazard is in many ways simply a new overlay on an old debate. And yet, a genuinely new element has recently been thrown into the mix. This is the proposition that countries are - or should be - moving to the corner solutions.
They are said to be opting either, on the one hand, for full flexibility, or, on the other hand, for rigid institutional commitments to fixed exchanges, in the form of currency boards or full monetary union with the dollar or euro.