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Browsing Reports (SNF) by Subject "credibility versus flexibility"

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    • To peg or not to peg? : a simple model of exchange rate regime choice in small economies 

      Berger, Helge; Jensen, Henrik; Schjelderup, Guttorm (Report, Research report, 2001-05)
      The choice of an exchange rate peg often points to a trade-off between gaining credibility and losing flexibility. We show that the flexibility loss may be reduced if domestic and foreign shocks are correlated and more ...

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