IMF Working Papers

Who Needs Bands? Exchange Rate Policy Before Emu

By Tamim Bayoumi

April 1, 1995

Preview Citation

Format: Chicago

Tamim Bayoumi. Who Needs Bands? Exchange Rate Policy Before Emu, (USA: International Monetary Fund, 1995) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Two issues are discussed. The first is which countries might benefit from entry into EMU before the millennium. Germany and her immediate neighbors appear the most likely to gain; however, our knowledge is too uncertain to say whether all, some, or no countries would reap net economic benefits. The second issue is how to avoid exchange rate instability in the transition to EMU. Experience from earlier exchange rate regimes suggests that an early announcement the parities at which different currencies would enter EMU could reduce such instability if governments were willing to accept the required limitations on domestic policies.

Subject: Conventional peg, Currencies, Exchange rate arrangements, Exchange rate policy, Exchange rates, Foreign exchange, Money

Keywords: Conventional peg, Country, Currencies, Currency, European monetary union, Exchange rate, Exchange rate arrangements, Exchange rate band, Exchange rate parity, Exchange rate peg, Exchange rate policy, Exchange rate tension, Exchange rates, Gold standard, Government, Government demand, Inadvisable government policy, Private exchange rate market, Western Europe, WP

Publication Details

  • Pages:

    20

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1995/043

  • Stock No:

    WPIEA0431995

  • ISBN:

    9781451846287

  • ISSN:

    1018-5941

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