Exchange Rate Regime Considerations for Jordan and Lebanon

Author/Editor: Bhattacharya, Rina
Publication Date: June 01, 2003
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper addresses the issue of the appropriate exchange rate regimes for Jordan and Lebanon in the context of the literature on optimum currency areas and the arguments concerning the use of the exchange rate as a nominal anchor for the economy. It presents some empirical results on the nature of output shocks in Jordan and Lebanon in the recent past, on the price sensitivity of exports from Jordan, and on currency and asset substitution in both countries. It does not directly address the issue of whether the current exchange rate in either country is overvalued or not, nor does it discuss the issue of an appropriate exit strategy from the current peg.
Series: Working Paper No. 03/137
Subject(s): Exchange rate regimes | Jordan | Lebanon | Currency pegs

Author's Keyword(s): exchange rate regime | optimum currency area | nominal anchor
Publication Date: June 01, 2003
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1372003 Pages: 41
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