To peg or not to peg? : a simple model of exchange rate regime choice in small economies
Research report
Åpne
Permanent lenke
http://hdl.handle.net/11250/165267Utgivelsesdato
2001-05Metadata
Vis full innførselSamlinger
- Reports (SNF) [542]
Sammendrag
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 volatile. Allowing for a plausible structural change after a peg, a flexibility gain may result.
Utgiver
SNFSerie
Report2001:14