To Peg or Not to Peg: A Template for Assessing the Nobler
IMF Working Papers, February 1, 2006
Source details
- Canonical URL
- To Peg or Not to Peg: A Template for Assessing the Nobler
Other formats
Bibliographic details
- Authors: Aasim M. Husain
- Published: February 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451863147.001
Template and methodology
- Proposes a template for assessing whether a country's economic and financial characteristics make it an appropriate candidate for a pegged exchange rate regime.
- Employs quantifiable measures of the following attributes identified in the literature as key potential determinants of regime choice:
- trade orientation
- financial integration
- economic diversification
- macroeconomic stabilization
- credibility
- "fear-offloating" type effects
Application and case studies
- The template is applied to two country cases:
- Kazakhstan
- Pakistan
Main findings
- Pakistan:
- Results indicate a fairly strong case against a pegged regime in Pakistan.
- Kazakhstan:
- Implications are mixed.
- Changes in that economy in recent years strengthen the case against a peg.
Subject matter and keywords
- Subject: Currencies, Exchange rate adjustments, Exchange rate flexibility, Exchange rates, Inflation
- Keywords: demand shock, economic cycle, regime choice, trade orientation, WP
Content in this bundle
- 7. Fear-of-Floating Effects