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:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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300 |a 36 pages 
651 4 |a Kuwait 
653 |a Government and the Monetary System 
653 |a Payment Systems 
653 |a Balance of trade 
653 |a Short-term Capital Movements 
653 |a Regimes 
653 |a Monetary economics 
653 |a Current Account Adjustment 
653 |a Trade balance 
653 |a Open Economy Macroeconomics 
653 |a Currency 
653 |a Trade: General 
653 |a Exports and Imports 
653 |a International economics 
653 |a Money 
653 |a Foreign Exchange 
653 |a Standards 
653 |a International trade 
653 |a Exports 
653 |a Currencies 
653 |a Monetary Systems 
653 |a Empirical Studies of Trade 
653 |a Exchange rates 
653 |a Money and Monetary Policy 
653 |a Imports 
653 |a Foreign exchange 
700 1 |a Erbas, S. 
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520 |a 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