scholarly journals Managing Currency Pegs

2012 ◽  
Author(s):  
Stephanie Schmitt-Grohé ◽  
Martín Uribe
Keyword(s):  
Currency Pegs

Optimum Currency Pegs for Latin America

1983 ◽  
Vol 15 (1) ◽  
pp. 56 ◽  
Author(s):  
Michael B. Connolly
Keyword(s):  
Latin America ◽  
Optimum Currency ◽  
Currency Pegs

scholarly journals Sustaining Fixed Rates: The Political Economy of Currency Pegs in Latin America

2005 ◽  
Vol 8 (2) ◽  
pp. 203-225 ◽  
Author(s):  
S. Brock Blomberg ◽  
Jeffry Frieden ◽  
Ernesto Stein
Keyword(s):  
Political Economy ◽  
Latin America ◽  
The Political ◽  
Currency Pegs

Argentina Currency Peg and Fiscal Reforms (A)

2017 ◽  
pp. 1-4
Author(s):  
Nabil Al-Najjar ◽  
Simone Galperti
Keyword(s):  
World War Ii ◽  
Currency Crises ◽  
Market Regulation ◽  
Government Control ◽  
Monetary Policies ◽  
Inflation Rates ◽  
Fiscal Reforms ◽  
Base Management ◽  
Currency Pegs

Case (A) starts by reviewing several attempts made by three consecutive Argentine governments between 1973 and 1989 to fight the three-digit inflation rates that had troubled the country since the end of World War II. Next, the implementation of the currency peg under the broad umbrella called the “convertibility plan” is discussed and its rationale is explained in connection with the Central Bank's role in controlling inflation and market expectations. The case then outlines the fiscal reforms introduced in the early 1990s concerning public finance, market regulation, and social security. Finally, the outcomes of these policies are briefly summarized.Argentina's currency collapse provides a vivid illustration of the perils of government control on exchange rates in an export-dependent economy. Students will learn and understand (1) the role of herding and expectations in currency collapse; (2) the interdependence of fiscal and monetary policies; (3) monetary base management and its effects on inflation; (4) the advantages and drawbacks of currency pegs; (5) the story of the late 1990s financial and currency crises.

Hong Kong and Denmark will keep currency pegs

2015 ◽  
Keyword(s):  
Hong Kong ◽  
Exchange Rate ◽  
Foreign Exchange ◽  
Medium Term ◽  
Content Type ◽  
The Us ◽  
Exchange Rate Arrangements ◽  
Exchange Markets ◽  
Us Dollar ◽  
Currency Pegs

Subject The longevity and outlook for currency pegs. Significance The abandonment of the Swiss franc's three-year-old peg to the euro on January 15 put into question the longevity of pegged exchange rate arrangements. It also highlights how unusual such arrangements are today. Impacts The SNB will still have to continue to intervene in foreign-exchange markets to stabilise the Swiss franc. The SNB move will not cause Danish authorities to stop pegging the Danish krone to the euro. The near- and medium-term longevity of the Hong Kong dollar peg to the US dollar will not be questioned.

On the identification of de facto currency pegs

2006 ◽  
Vol 20 (1) ◽  
pp. 112-127 ◽  
Author(s):  
Agnès Bénassy-Quéré ◽  
Benoît Cœuré ◽  
Valérie Mignon
Keyword(s):  
Currency Pegs

Managing Currency Pegs

2012 ◽  
Vol 102 (3) ◽  
pp. 192-197 ◽  
Author(s):  
Stephanie Schmitt-Grohé ◽  
Martín Uribe
Keyword(s):  
Exchange Rate ◽  
Graphical Analysis ◽  
Wage Rigidity ◽  
Nominal Wage ◽  
Involuntary Unemployment ◽  
Second Best ◽  
Alternative Policy ◽  
Nominal Wage Rigidity ◽  
Currency Pegs ◽  
Real Rigidity

The combination of a fixed exchange rate and downward nominal wage rigidity creates a real rigidity. In turn, this real rigidity makes the economy prone to involuntary unemployment during external crises. This paper presents a graphical analysis of alternative policy strategies aimed at mitigating this source of inefficiency. First- and second-best monetary and fiscal solutions are analyzed. Second-best solutions are prudential, whereas first-best solutions are not.

Sign in / Sign up

Export Citation Format

Share Document