Don't Fix, Don't Float [electronic resource] /
OECD Development Centre.
Organisation for Economic Co-operation and Development.Development Department
Organisation for Economic Co operation and DevelopmentContent Provider
Braga de Macedo, Jorge.
Cohen, Daniel.
Reisen, Helmut.
Paris : OECD Publishing,
2001.
Don´t Fix, Don´t Float is a book about credibility, or lack thereof. It deals with questions pertaining to international financial architecture from the perspective of developing countries, emerging markets and transition economies. Should the monetary authority fix the exchange rate of the national currency? Should it instead let the currency float in foreign exchange markets? What about bands, baskets and crawls between the fix and the float corners? Answering these questions is of significance to the national economy involved and, with regard to global finance, often beyond. In the same way that there may never be a pure float, even among key currencies, an instant fix does not provide a fast lane to credibility. Credibility is earned abroad as the development process reinforces institution building in monetary, financial and budgetary matters. Indeed, rules for budgetary adjustment (such as the zero deficit in Argentina or the EU Stability and Growth Pact) are necessary for any exchange-rate regime to deliver economic growth and development. In Don´t Fix, Don´t Float, the case for intermediate regimes is made for five country groups in Africa, Asia and Latin America. Developing countries, emerging markets and transition economies, together with the OECD area, are facing the consequences of a worsening global economic outlook. In this environment, the development perspective underlying Don't Fix, Don't Float is clearly essential.
Description based upon print version of record.
CONTENTS; Preface; Chapter 1. Monetary Integration for Sustained Convergence: Earning Rather than Importing Credibility; Chapter 2. Intermediate Exchange-Rate Regimes for Groups of Developing Countries; Chapter 3. The Case for Hard Pegs in the Brave New World of Global Finance; Chapter 4. Exchange Rates in Transition
Don´t Fix, Don´t Float is a book about credibility, or lack thereof. It deals with questions pertaining to international financial architecture from the perspective of developing countries, emerging markets and transition economies. Should the monetary authority fix the exchange rate of the national currency? Should it instead let the currency float in foreign exchange markets? What about bands, baskets and crawls between the fix and the float corners? Answering these questions is of significance to the national economy involved and, with regard to global finance, often beyond. In the same way that there may never be a pure float, even among key currencies, an instant fix does not provide a fast lane to credibility. Credibility is earned abroad as the development process reinforces institution building in monetary, financial and budgetary matters. Indeed, rules for budgetary adjustment (such as the zero deficit in Argentina or the EU Stability and Growth Pact) are necessary for any exchange-rate regime to deliver economic growth and development. In Don´t Fix, Don´t Float, the case for intermediate regimes is made for five country groups in Africa, Asia and Latin America. Developing countries, emerging markets and transition economies, together with the OECD area, are facing the consequences of a worsening global economic outlook. In this environment, the development perspective underlying Don't Fix, Don't Float is clearly essential.
Currency question -- Developing countries -- Congresses.
Foreign exchange administration -- Developing countries.
Foreign exchange rates -- Developing countries -- Congresses.
Foreign exchange rates -- Developing countries.
Foreign exchange rates -- Europe, Eastern -- Congresses.
Foreign exchange rates.
Foreign exchange rates
Foreign exchange rates
Currency question
Currency question
International finance
Finance
Business & Economics
Development Centre Studies