Series: IMF Working Papers
Author(s): Behrouz Guerami , S. Erbas , and George Abed
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 April 2003
Keywords: exchange rate pegging, dollar peg, basket peg, exchange rate, competitiveness, exchange rate regime, currency basket, flexible exchange rate, International Policy Coordination and Transmission,
We compare the dollar peg to a dollar-euro basket peg as alternative exchange rate regimes for the incipient Gulf Cooperation Council (GCC) currency union. Quantitative evidence suggests basket peg does not dominat...