Adopting Currency Convertibility: Experiences and Monetary Policy Considerations for Advanced Developing Countries

Author/Editor:

Peter J. Quirk

Publication Date:

August 1, 1994

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 analyses issues for developing countries with structurally sound balance of payments that are considering a move to full currency convertibility. The main experiences of industrial countries in their decontrol of international capital transactions are reviewed, with an emphasis on the implications for monetary policy. The paper deals both with stabilization, and the prudential issues, which are especially important in view of the potential for speculative bubbles. Respective roles of the international organizations, IMF, OECD, and the GATT, in assisting the capital liberalization process are discussed.

Series:

Working Paper No. 1994/096

Subject:

Balance of payments Capital controls Capital inflows Currencies Currency convertibility Domestic credit Exchange rates Foreign exchange Money

Notes:

Discusses respective roles of the international organizations, IMF, OECD, and the GATT, in assisting the capital liberalization process.

English

Publication Date:

August 1, 1994

ISBN/ISSN:

9781451950052/1018-5941

Stock No:

WPIEA0961994

Pages:

28

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