Pegging to the Dollar and the Euro

Patrick Honohan and Philip Lane

International Finance, 1999, vol. 2, issue 3, 379-410

Abstract: The newly launched euro has already accumulated some ‘trackers’– that is, countries that attempt to maintain exchange rate stability with it. In this paper, we ask whether the existence of trackers should be a matter of concern for the European Union. To gain some perspective, we review the historical experience of the US with respect to dollar trackers. We identify and analyse the countries most likely to track the euro. Although the aggregate size of the group of potential euro trackers is small relative to the euro zone, we argue that this does not justify an attitude of benign neglect. Rather, we make recommendations for EU policy towards euro trackers, arguing in favour of some limited and conditional support for stable bilateral exchange rates.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
https://doi.org/10.1111/1468-2362.00035

Related works:
Working Paper: Pegging To The Dollar And The Euro (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:intfin:v:2:y:1999:i:3:p:379-410

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1367-0271

Access Statistics for this article

International Finance is currently edited by Benn Steil

More articles in International Finance from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().