To Peg or Not to Peg: A Template for Assessing the Nobler

This paper proposes a template for assessing whether or not a country''s economic and financial characteristics make it an appropriate candidate for a pegged exchange rate regime. The template employs quantifiable measures of attributes-trade orientation, financial integration, economic di...

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1. Verfasser: Husain, Aasim M. (VerfasserIn)
Format: Elektronisch E-Book
Sprache:English
Veröffentlicht: Washington, D.C International Monetary Fund 2006
Schriftenreihe:IMF Working Papers Working Paper No. 06/54
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Zusammenfassung:This paper proposes a template for assessing whether or not a country''s economic and financial characteristics make it an appropriate candidate for a pegged exchange rate regime. The template employs quantifiable measures of attributes-trade orientation, financial integration, economic diversification, macroeconomic stabilization, credibility, and ""fear-offloating"" type effects-that have been identified in the literature as key potential determinants of regime choice. To illustrate, the template is applied to Kazakhstan and Pakistan. The results indicate a fairly strong case against a pegged regime in Pakistan. The implications for Kazakhstan are mixed, although changes in that economy in recent years strengthen the case against a peg
Beschreibung:1 Online-Ressource (29 p)
ISBN:1451863144
9781451863147

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