Wechselkursbindung in Entwicklungsländern: Eine optimale Anpassungsstrategie an flexible Wechselkurse?
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Wechselkursbindung in Entwicklungsländern: Eine optimale Anpassungsstrategie an flexible Wechselkurse?
Credit and Capital Markets – Kredit und Kapital, Vol. 18 (1985), Iss. 3 : pp. 320–346
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Dieter Bender, Bochum
Cited By
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Die Bindung des Wechselkurses an das Sonderziehungsrecht — Ein Rückblick
Duijm, Bernhard
Credit and Capital Markets – Kredit und Kapital, Vol. 26 (1993), Iss. 3 P.451
https://doi.org/10.3790/ccm.26.3.451 [Citations: 0] -
Exchange-rate strategies in developing countries
Ohr, Renate
Intereconomics, Vol. 26 (1991), Iss. 3 P.115
https://doi.org/10.1007/BF02926121 [Citations: 0]
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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.