Exchange Rate Regime Considerations for Jordan and Lebanon

June 1, 2003

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Format: Chicago

Rina Bhattacharya. Exchange Rate Regime Considerations for Jordan and Lebanon, (USA: International Monetary Fund, 2003) accessed September 20, 2024

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.

Subject: Conventional peg, Exchange rate arrangements, Exchange rate flexibility, Exchange rates, Exports, Foreign exchange, International trade

Keywords: Case of Jordan, Conventional peg, Exchange rate, Exchange rate arrangements, Exchange rate depreciation, Exchange rate flexibility, Exchange rate instrument, Exchange rate peg, Exchange rate regime, Exchange rates, Exports, Jordan, Jordanian dinar, Lebanese pound, Lebanon, Middle East, Money demand demand shock, Money demand disturbance, Nominal anchor, Optimum currency area, Rate of return, Trading partner country, WP

Publication Details

Pages:

42
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2003/137
Stock No:

WPIEA1372003
ISBN:

9781451855937
ISSN:

1018-5941

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