Is a G-3 Target Zone on Target for Emerging Markets?

Carmen Reinhart and Vincent Reinhart

MPRA Paper from University Library of Munich, Germany

Abstract: With many emerging market currencies tied to the U.S. dollar either implicitly or explicitly, movements in the exchange values of the currencies of major countries–in particular the prolonged appreciation of the U.S. dollar vis-a-vis the yen and the deutsche mark in advance of Asia’s troubles–is argued to have worsened the competitive position of many emerging market economies. One solution to reducing destabilizing shocks emanating from abroad, the argument runs, would be to reduce the variability of the G-3 currencies by establishing target bands.1 This paper examines the argument for such a target zone from an emerging market perspective but will be silent on the costs and benefits for industrial countries.

JEL-codes: E42 F30 (search for similar items in EconPapers)
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Finance and Development, 1.39(2002): pp. 17-19

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/7581/1/MPRA_paper_7581.pdf original version (application/pdf)

Related works:
Working Paper: Una banda cambiaria en el G–3 ¿Es lo mejor para los mercados emergentes? (2002)
Working Paper: What does a G-3 target zone mean for emerging-market economies? (2000)
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:pra:mprapa:7581

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().