Managed Floating PlusIn this analysis Morris Goldstein examines currency regime choices for emerging economies that are heavily involved with private capital markets. The author argues that the best regime choice for such economies would be managed floating plus, where "plus" is shorthand for a framework that includes inflation targeting and aggressive measures to discourage currency mismatching. Goldstein argues that if managed floating were enhanced in this way, it would retain the desirable features of a flexible rate regime while addressing the nominal anchor and balance-sheet problems that have historically underpinned a "fear of floating" and handicapped the performance of managed floating in emerging economies. The author also shows why managed floating plus is superior to four alternative currency-regime options--an adjustable peg system, a "BBC (basket, band, crawl) regime," a currency board, and dollarization. |
Contents
Introduction What Is the Best Currency Regime? | 1 |
Methodological Pitfalls in Choosing among Currency Regimes | 7 |
Adjustable Peg Regimes | 13 |
The BBC Regime | 17 |
Currency Boards | 21 |
Dollarization | 33 |
Managed Floating Plus | 43 |
Other editions - View all
Common terms and phrases
adjustable peg regimes Argentina argue Asian crisis BBC regime borrowing Bureau of Economic Calvo and Reinhart central bank Chile Cline cost countercyclical crises currency boards currency risk devaluation developing countries domestic currency editor emerging economies Emerging Markets emerging-market economies Exchange Rate Regimes exports external debt facto fear of floating fiscal policy fixed rate flexible rates floating rate foreign currency foreign exchange Frankel Fred Bergsten Gary Clyde Hufbauer Ghosh gimes Global growth Gulde hard pegs hedging Hong Kong industrial countries inflation targeting International Monetary Fund involved with private ISBN Jeffrey John Williamson Kimberly Ann Elliott Latin America low inflation managed floating Mishkin monetary policy monetary policy independence Morris Goldstein National Bureau NBER Working Paper nominal anchor nominal exchange rate percent private capital markets real exchange rate reduce relatively rency reserve currency Schott sector seigniorage shocks target zone Trade Velasco volatility vulnerability Washington World Economic Outlook World Economy
References to this book
Controlling Currency Mismatches in Emerging Markets Morris Goldstein,Philip Turner No preview available - 2004 |
Evolution and Performance of Exchange Rate Regimes, Issues 2003-2243 Kenneth S. Rogoff No preview available - 2004 |