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Exchange-rate policies for emerging market economies
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Exchange-rate policies for emerging market economies

Author: Richard J Sweeney; Clas Wihlborg; Thomas D Willett
Publisher: Boulder, Colo. : Westview Press, 1999.
Series: Political economy of global interdependence.
Edition/Format:   Book : EnglishView all editions and formats
Summary:
With the loss of Soviet control in Central and Eastern Europe, as well as the move toward economic liberalization in many developing countries, a huge increase in the number of convertible currencies in the world has occurred. A key aspect of the management of these currencies involves their relationships with the world economy, which is determined partly by the type of exchange rate regime. On the one hand, a fixed
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Additional Physical Format: Online version:
Exchange-rate policies for emerging market economies.
Boulder, Colo. : Westview Press, 1999
(OCoLC)654522594
Material Type: Internet resource
Document Type: Book, Internet Resource
All Authors / Contributors: Richard J Sweeney; Clas Wihlborg; Thomas D Willett
ISBN: 081333019X 9780813330198
OCLC Number: 39539535
Description: x, 391 p. : ill. ; 24 cm.
Contents: Introduction / Richard J. Sweeney, Clas Wihlborg and Thomas D. Willett --
1. The Case for Hard Currency Strategies for Emerging Market Economies / Eduard Hochreiter --
2. Is Optimum Currency Area Theory Irrelevant for Economies in Transition? / Linda S. Goldberg --
3. The Relevance of the Optimum Currency Area Approach for Exchange Rate Policies in Emerging Market Economies / Thomas D. Willett and Clas Wihlborg --
4. Exchange Rates as Nominal Anchors: An Overview of the Issues / Jilleen R. Westbrook and Thomas D. Willett --
5. Central European Exchange Rate Policy and Inflation / Richard C. K. Burdekin, Heidi Nelson and Thomas D. Willett
Series Title: Political economy of global interdependence.
Responsibility: edited by Richard J. Sweeney, Clas G. Wihlborg, and Thomas D. Willett.
More information:

Abstract:

With the loss of Soviet control in Central and Eastern Europe, as well as the move toward economic liberalization in many developing countries, a huge increase in the number of convertible currencies in the world has occurred. A key aspect of the management of these currencies involves their relationships with the world economy, which is determined partly by the type of exchange rate regime. On the one hand, a fixed exchange rate requires that a country be willing to give up its domestic macroeconomic independence. On the other, a flexible exchange rate may carry substantial costs in terms of inflation. Contributors to this volume argue that the costs and benefits of fixed versus flexible rates vary systematically across different types of economies.

Currency-board fixed exchange rate systems have definite attractions for relatively small open economies but make much less sense for large economies. They also conclude that attempts to avoid the basic choice between fixed and flexible rates by adopting temporarily pegged exchange rates have generally ended in failure.

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