The exchange rate regimes of the Asian countries and their subsequent collapse played key roles in the financial crisis. This prompted a renewed debate over the best choice of exchange rate arrangements, particularly for emerging markets. How should emerging markets, at present, structure their exchange rate system in order to provide stability and to prevent new crises from occurring? It is argued in the literature that only polar extremes (floating or fixed) are viable. This paper outlines the core ideas of the emerging debate and examines the reason for this shift identified as the "hollowing of the middle".