An Institutional Framework for Comparing Emerging Market Currency Boards
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This paper offers an in-depth review of the institutional arrangements underlying existing currency boards (CBAs) in Argentina (until 2001), Eastern Europe, and Asia. An index of precommitment is derived from an analysis of legislative frameworks and monetary policy operations. The index covers features associated with monetary and exchange rate credibility such as: (i) clarity of legal basis, (ii) quality of reserve coverage, (iii) coverage of monetary aggregates, (iv) claims on reserves, (v) operational autonomy, (vi) transparency and accountability, and (vii) escape clauses. The paper concludes with a discussion of flexibility and credibility trade-offs and exit issues.
Series:
Working Paper No. 2004/180
Subject:
Conventional peg Currencies Exchange rate arrangements Exchange rates Foreign exchange Inflation Money Prices
English
Publication Date:
September 1, 2004
ISBN/ISSN:
9781451859140/1018-5941
Stock No:
WPIEA1802004
Pages:
42
Please address any questions about this title to publications@imf.org