Series: IMF Working Papers
Author(s): Pablo Guidotti , and Carlos Végh Gramont
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 September 1992
Keywords: exchange rate, balance of payments, balance of payments crisis, nominal interest rate, real exchange rate
In exchange rate-based stabilization programs, credibility often follows a distinct time pattern. At first it rises as the highly visible nominal anchor provides a sense of stability and hopes run high for a perman...