Optimal Currency Basket Pegs for Developing and Emerging Economies

Abstract

Abstract• JEL Classifications: F3 P5•

Oil Exporters: In Search of an External Anchor

“…Second, there are models based on a complete macroeconomic description of the economy and the presence of multiple stochastic shocks, such as Turnovsky (1982) and Daniels et al (2001), its recent restatement in a context including internationally traded bonds. These models are appealing as they provide a general equilibrium framework that takes into account relationships left aside by simple partial equilibrium models.…”

China’s New Exchange Rate Regime, Optimal Basket Currency and Currency Diversification

“…In these models, the optimal composition and weightings of the currencies in the basket are determined by interaction with the macro economy and often in the presence of multiple stochastic shocks (Turnovsky, 1982;Horne and Martin, 1989;Han, 2000;Daniels et al, 2001;Habib and Strasky, 2008). …”