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External Stability Under Alternative Nominal Exchange Rate Anchors An Application to the GCC Countries

Import and export stability is examined under two alternative nominal exchange rate anchors, the U.S. dollar and the SDR. Stability under the two pegs depends critically on import and export elasticity with respect to exchange rates. The implications of import and export elasticity for an optimal cu...

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Bibliographic Details
Main Author: Iqbal, Zubair
Other Authors: Erbas, S.
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1997
Series:IMF Working Papers
Subjects:
Government And The Monetary System
Payment Systems
Balance Of Trade
Short-term Capital Movements
Currency; Foreign Exchange
Monetary Economics
Regimes
Current Account Adjustment
Trade Balance
Open Economy Macroeconomics
Trade: General
Exports And Imports
International Economics
Money
Foreign Exchange
Standards
International Trade
Exports
Currencies
Monetary Systems
Exchange Rates
Empirical Studies Of Trade
Money And Monetary Policy
Imports
Kuwait
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:Import and export stability is examined under two alternative nominal exchange rate anchors, the U.S. dollar and the SDR. Stability under the two pegs depends critically on import and export elasticity with respect to exchange rates. The implications of import and export elasticity for an optimal currency basket are also explored. The elasticity estimates for the GCC countries suggest that the SDR peg may not outperform the dollar peg in improving external stability. Nevertheless, switching to some other nominal exchange rate anchor may improve external stability, a possibility that remains to be explored
Physical Description:36 pages
ISBN:9781451927900

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