{
  "title": "To Peg or Not to Peg: A Template for Assessing the Nobler",
  "publication": "IMF Working Papers, February 1, 2006",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/to-peg-or-not-to-peg-a-template-for-assessing-the-nobler-18893",
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  "summary": "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.",
  "sections": [
    {
      "heading": "Template and methodology",
      "content": "- Proposes a template for assessing whether a country's economic and financial characteristics make it an appropriate candidate for a pegged exchange rate regime.\n- Employs quantifiable measures of the following attributes identified in the literature as key potential determinants of regime choice:\n  - trade orientation\n  - financial integration\n  - economic diversification\n  - macroeconomic stabilization\n  - credibility\n  - \"fear-offloating\" type effects"
    },
    {
      "heading": "Application and case studies",
      "content": "- The template is applied to two country cases:\n  - Kazakhstan\n  - Pakistan"
    },
    {
      "heading": "Main findings",
      "content": "- Pakistan:\n  - Results indicate a fairly strong case against a pegged regime in Pakistan.\n- Kazakhstan:\n  - Implications are mixed.\n  - Changes in that economy in recent years strengthen the case against a peg."
    },
    {
      "heading": "Subject matter and keywords",
      "content": "- Subject: Currencies, Exchange rate adjustments, Exchange rate flexibility, Exchange rates, Inflation\n- Keywords: demand shock, economic cycle, regime choice, trade orientation, WP\n\n---\n\n Content in this bundle\n\n- 7. Fear-of-Floating Effects\n  - 7. Fear-of-Floating Effects (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 7. Fear-of-Floating Effects (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/to-peg-or-not-to-peg-a-template-for-assessing-the-nobler-18893"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/to-peg-or-not-to-peg-a-template-for-assessing-the-nobler-18893/index.md)",
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    "Authors: Aasim M. Husain",
    "Published: February 1, 2006",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451863147.001",
    "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:",
    "The template is applied to two country cases:",
    "Pakistan:",
    "Kazakhstan:",
    "Subject: Currencies, Exchange rate adjustments, Exchange rate flexibility, Exchange rates, Inflation",
    "Keywords: demand shock, economic cycle, regime choice, trade orientation, WP",
    "**7. Fear-of-Floating Effects**"
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