To peg or not to peg
Subtitle: a template for assessing the nobler
By: prepared by Aasim M. Husain.
Contributors: International Monetary Fund. Middle East and Central Asia Dept.
Series: IMF working paper -- WP/06/54
Publisher: International Monetary Fund, Middle East and Central Asia Dept.
Published: 2006
Place of publication: Washington, D.C
Language: eng
Number of pages: 27
Subjects: Foreign exchange rates -- Econometric models.; Foreign exchange rates -- Kazakhstan -- Econometric models.; Foreign exchange rates -- Pakistan -- Econometric models.
Description: This paper proposes a template for assessing whether or not a country's economic and financial characteristics make it an appropriate candidate for a pegged exchange rate regime. The template employs quantifiable measures of attributes-trade orientation, financial integration, economic diversification, macroeconomic stabilization, credibility, and "fear-of-floating" type effects-that have been identified in the literature as key potential determinants of regime choice. To illustrate, the template is applied to Kazakhstan and Pakistan. The results indicate a fairly strong case against a pegged regime in Pakistan. The implications for Kazakhstan are mixed, although changes in that economy in recent years strengthen the case against a peg.
Notes: "February 2006."

Includes bibliographical references (p. 26-27).

Also available on the World Wide Web.