External Stability Under Alternative Nominal Exchange Rate Anchors : An Application to the GCC Countries /

Import and export stability is examined under two alternative nominal exchange rate anchors, the U.S. dollar and the SDR. Stability under the two pegs depends critically on import and export elasticity with respect to exchange rates. The implications of import and export elasticity for an optimal cu...

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Autor principal: Iqbal, Zubair
Altres autors: Erbas, S.
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 1997.
Col·lecció:IMF Working Papers; Working Paper ; No. 1997/008
Accés en línia:Full text available on IMF
Descripció
Sumari:Import and export stability is examined under two alternative nominal exchange rate anchors, the U.S. dollar and the SDR. Stability under the two pegs depends critically on import and export elasticity with respect to exchange rates. The implications of import and export elasticity for an optimal currency basket are also explored. The elasticity estimates for the GCC countries suggest that the SDR peg may not outperform the dollar peg in improving external stability. Nevertheless, switching to some other nominal exchange rate anchor may improve external stability, a possibility that remains to be explored.
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Descripció física:1 online resource (36 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students