JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Wechselkursbindung in Entwicklungsländern: Eine optimale Anpassungsstrategie an flexible Wechselkurse?
Credit and Capital Markets – Kredit und Kapital, Vol. 18 (1985), Iss. 3 : pp. 320–346
1 Citations (CrossRef)
Additional Information
Article Details
Author Details
Dieter Bender, Bochum
Cited By
-
Exchange-rate strategies in developing countries
Ohr, Renate
Intereconomics, Vol. 26 (1991), Iss. 3 P.115
https://doi.org/10.1007/BF02926121 [Citations: 0]
References
-
J. R. Artus; R. Rhomberg: A Multilateral Exchange Rate Model, IMF Staff Papers, 20, 1973.
Google Scholar -
R. M. Bautista: Exchange Rate Adjustments under Generalized Floating: Comparative Analysis among Developing Countries, World Bank Staff Working Paper, No. 436, 1980.
Google Scholar -
G. Belanger: An Indicator to Effective Exchange Rates for Primary Producing Countries, IMF Staff Papers, 23, 1976.
Google Scholar -
S. W. Black: Exchange Policies for Less Developed Countries in a World of Floating Rates, Princeton Essays in International Finance, No. 119, 1976.
Google Scholar -
W. H. Branson; L. T. Katseli-Papaefstratiou: Income Stability, Terms of Trade, and the Choice of an Exchange Rate Regime, Journal of Development Economics, 7, 1980.
Google Scholar -
W. H. Branson; L. T. Katseli-Papaefstratiou: Exchange Rate Policy for Developing Countries, Working Paper, Princeton University International Finance Section, 1981.
Google Scholar -
M. B. Connolly: The Choice of an Optimum Currency Peg for a Small, Open Country, Journal of International Money and Finance, 1, 1982.
Google Scholar -
M. B. Connolly: Optimum Currency Pegs for Latin America, Journal of Money, Credit, and Banking, 15, 1983.
Google Scholar -
M. B. Connolly; A. Yousef: Optimum Currency Pegs for Arab Countries, in: M. B. Connolly (Ed.), The International Monetary System: Choices for the Future, New York, 1982.
Google Scholar -
A. D. Crockett; S. M. Nsouli: Exchange Rate Policies for Developing Countries, Journal of Development Studies, 13, 1977.
Google Scholar -
M. Feldsieper; M. D. Yaar: Wechselkurssysteme für Entwicklungsländer: Optionen und Probleme, in: A. Woll, K. Glaubitt, H.-B. Schäfer (Hrsg.), Nationale Entwicklung und internationale Zusammenarbeit, Berlin 1983.
Google Scholar -
A. Feltenstein; M. Goldstein; S. Schadler: A Multilateral Exchange Rate Model for Primary Producing Countries, IMF Staff Papers, 26, 1979.
Google Scholar -
M. J. Flanders; E. Helpman: An Optimal Exchange Rate Peg in a World of General Floating, Review of Economic Studies, 46, 1979.
Google Scholar -
F. Hirsch; I. Higgins: An Indicator of Effective Exchange Rates, IMF Staff Papers, 17, 1970.
Google Scholar -
L. Lipschitz: Exchange Rate Policy for a Small Developing Country, and the Selection of an Appropriate Standard, IMF Staff Papers, 26, 1979.
Google Scholar -
L. Lipschitz; V. Sundararajan: The Optimal Basket in a World of Generalized Floating, IMF Staff Papers, 27, 1980.
Google Scholar -
L. Lipschitz; V. Sundararajan: The Optimal Currency Basket in a World of Generalized Floating with Price Uncertainty, in: M. B. Connolly (Ed.), The International Monetary System: Choices for the Future, New York 1982.
Google Scholar -
P. B. Rana: Asean Exchange Rates. Policies and Trade Effects, Institute of South-East Asian Studies, 1981.
Google Scholar -
R. Rhomberg: Indices of Effective Exchange Rates, IMF Staff Papers, 17, 1976.
Google Scholar -
J. Williamson: A Survey of the Literature on the Optimal Peg, Journal of Development Economics, 11, 1982.
Google Scholar
Abstract
Basket Pegging in Developing Countries
Most underdeveloped countries adapted to floating exchange rates by pegging to a single currency or to a basket of currencies. Basket pegging is a relatively new form of exchange rate policy used by an increasing number of LDCs. This essay analyzes the effects of pegging to currency baskets on the economy of an LDC producing primary goods and whose main trading partners are industrialized countries with freely floating exchange rates. Exchange rate movements following purchasing power parity (constant real exchange rates among industrialized countries) and exchange rates moving away from PPP (real exchange rate changes) have to be distinguished when the question is raised if basket pegging offers an optimal exchange rate regime. An optimal exchange rate regime is defined as an arrangement protecting LDCs most efficiently against detrimental impacts of floating currencies. It is shown that single currency pegging is superior to basket pegging only if real exchange rates of the industrialized trading partners remain constant and if the least inflationary currency is chosen as a standard. In the normal case of fluctuating real exchange rates basket pegging is superior to single currency pegs in stabilizing selected target variables. But conflicts with other targets arise and there exists no currency basket construction which could be able to dissolve these conflicts.