The Leading eBooks Store Online 4,353,660 members ⚫ 1,442,818 ebooks

New to eBooks.com?

Learn more

Why Do Countries Peg the Way They Peg?The Determinants of Anchor Currency Choice

Why Do Countries Peg the Way They Peg?The Determinants of Anchor Currency Choice by Nienke Oomes
Buy this eBook
US$ 9.00
(If any tax is payable it will be calculated and shown at checkout.)
What determines the currency to which countries peg or "anchor" their exchange rate? Data for over 100 countries between 1980 and 1998 reveal that trade network externalities are a key determinant. This implies that anchor currency choice may well be suboptimal in that certain currencies, e.g., the U.S. dollar, could be oversubscribed. It also implies that changes in anchor choices by a small number of countries can have large and rapid effects on the international monetary system. Other factors found to be related to anchor choice include the symmetry of output shocks and the currency denomination of liabilities.
International Monetary Fund; May 2008
45 pages; ISBN 9781452775319
Read online, or download in secure EPUB or secure PDF format
Title: Why Do Countries Peg the Way They Peg?The Determinants of Anchor Currency Choice
Author: Nienke Oomes; Christopher M. Meissner