## 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](https://www.imf.org/en/publications/wp/issues/2016/12/31/to-peg-or-not-to-peg-a-template-for-assessing-the-nobler-18893)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/to-peg-or-not-to-peg-a-template-for-assessing-the-nobler-18893/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/to-peg-or-not-to-peg-a-template-for-assessing-the-nobler-18893/index.json)
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## Bibliographic details
- Authors: Aasim M. Husain
- Published: February 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451863147.001

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### 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

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## Content in this bundle

- **7. Fear-of-Floating Effects**
  - [7. Fear-of-Floating Effects (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2006/_wp0654.pdf.md){rel="alternate" type="text/markdown"}
  - [7. Fear-of-Floating Effects (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2006/_wp0654.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/to-peg-or-not-to-peg-a-template-for-assessing-the-nobler-18893_