Sustaining Fixed Exchange Rates : A Model with Debt and Institutions /

Fixed exchange rate regimes have come into disrepute, as their defense has become all but impossible. Yet, while a determined attack on a currency cannot be prevented or, ultimately, withstood, policies can reduce the vulnerability of a country to such attacks. The paper develops an analytical frame...

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Автор: Pitt, Alexander
Формат: Журнал
Мова:English
Опубліковано: Washington, D.C. : International Monetary Fund, 2001.
Серія:IMF Working Papers; Working Paper ; No. 2001/027
Онлайн доступ:Full text available on IMF
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520 3 |a Fixed exchange rate regimes have come into disrepute, as their defense has become all but impossible. Yet, while a determined attack on a currency cannot be prevented or, ultimately, withstood, policies can reduce the vulnerability of a country to such attacks. The paper develops an analytical framework of costs and benefits of a fixed exchange rate, based on the ability of a developing country to meet its external obligations while achieving a maximum rate of long-term output growth. The focus is on how structural policies and institutions influence the degree of dependence of a country on a fixed exchange rate regime. 
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