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Topic: Pegged rate

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	Exchange rate regime - Wikipedia, the free encyclopedia
		The exchange rate regime is the way a country manages its currency in respect to foreign currencies and the foreign exchange market.
		Crawling bands: the rate is allowed to fluctuate in a band around a central value, which is adjusted periodically.
		Pegged with horizontal bands: The currency is allowed to fluctuate in a fixed band (bigger than 1%) around a central rate.
	en.wikipedia.org /wiki/Exchange_rate_regime (237 words)

	Benjamin J. Cohen, Bretton Woods System
		Underlying their choice of exchange rate system, for example, seemed a clear expectation that beyond the postwar transitional period (itself expected to be brief) payments imbalances would not be excessive or require sacrifice of domestic stability for the sake of external equilibrium.
		The pegged rate regime was manifestly biased against frequent changes of currency values, since states had to demonstrate the existence of a fundamental disequilibrium before they could alter their par values; yet governments were left with few other instruments, other than capital controls, to deal with payments disturbances.
		The pegged rate system was incapable of coping with widening payments imbalances, and the confidence problem was worsening as speculators were encouraged to bet on devaluation of the dollar or revaluations of the currencies of Europe or Japan.
	www.polsci.ucsb.edu /faculty/cohen/inpress/bretton.html (4372 words)

	Economic Issues 2--Does the Exchange Rate Regime Matter for Inflation and Growth?
		Since there was a preponderance of pegged exchange rate regimes in the 1960s--when inflation rates were low--the association between low inflation and pegged rates might be more an artifact of the general macroeconomic climate than a property of the regime itself.
		Over the sample period, nominal interest rates have tended to rise, but the rate of increase for countries with floating rates was almost 6 percent, as against 2 percent for countries with pegged rates.
		Pegged exchange rates are associated with significantly better inflation performance (lower inflation and less variability), and there is at least some evidence of a causal relationship.
	www.imf.org /external/pubs/ft/issues2 (3348 words)

	Some Reflections on Monetary Institutions and Exchange-Rate Regimes
		In consequence, by January 1998, the rupiah currency in circulation was growing by over 35% per month and the rupiah's exchange rate was collapsing at a rate unprecedented for a currency in a country not subject to a war, a fiscal crisis or a hyperinflation.
		Pegged rates, such as those that were employed throughout most of Asia and in Russia and Brazil before the recent currency crises, require a monetary authority to manage both the exchange rate and monetary policy.
		Alternatively, if pegged rates are employed, they must be coupled with exchange and capital controls, if crises are to be avoided.
	www.geocities.com /Eureka/Concourse/8751/edisi04/hanke100.htm (4864 words)

	Howstuffworks "How Exchange Rates Work"
		A pegged, or fixed system, is one in which the exchange rate is set and artificially maintained by the government.
		If a sudden demand for a currency were to drive up the exchange rate, the national bank would have to release enough of that currency into the market to meet the demand.
		When people realize that their currency isn't worth as much as the pegged rate indicates, they may rush to exchange their money for other, more stable currencies.
	money.howstuffworks.com /exchange-rate4.htm (274 words)

	Economic Issues No. 13 -- Fixed or Flexible?--Getting the Exchange Rate Right in the 1990s
		A country trying to maintain a peg may not, for example, be able to increase its borrowing through the bond market because this may affect interest rates and, hence, put pressure on the exchange rate peg.
		When the peg is to a single currency, fluctuations in the anchor currency against other currencies imply fluctuations in the exchange rate of the economy in question against those currencies.
		In each case, the exchange rate is maintained within a margin of ±15 percent around the bilateral central rates against other participating currencies, with the exception of Germany and the Netherlands, in which case the exchange rate is maintained within a margin of ±2.25 percent.
	www.imf.org /external/pubs/ft/issues13/index.htm (4503 words)

	Currency Areas, Exchange Rate Systems and International Monetary Reform - Robert Mundell
		By contrast, a pegged rate is an arrangement whereby the central bank intervenes in the exchange market to peg the exchange rate but still keeps an independent monetary policy.
		A pegged exchange rate may be defended as a temporary expedient in certain situations, but as a general rule, because it matches an international system with a domestic monetary policy, it involves conflicts that lead to crises and breakdowns.
		At the same time Canada's unemployment rate and growth rate were in general significantly lower than those in the United States and Canada, contrary to the long-term pattern, did not participate in the magnificent boom that got its start in the early 1980s.
	www.columbia.edu /~ram15/cema2000.html (12903 words)

	[No title]
		Pegging the exchange rate at an artificial level, and in the presence of an inconsistent fiscal policy is, perhaps, the most common example of this type of practice.
		In a country with fixed exchange rates the authorities should react to a negative shock -- a worsening of the terms of trade or a decline in capital inflows—by tightening monetary and fiscal policies, until external balance is re-established.
		The authors compute unconditional and conditional means for the rates of inflation and output growth in the countries in the sample grouped and classified according to the degree of flexibility of their nominal exchange rate, as well as by their level of income.
	www.geocities.com /Eureka/Concourse/8751/edisi04/draft3.htm (18064 words)

	Floating And Fixed Exchange Rates
		An exchange rate is the rate at which one currency can be exchanged for another.
		A fixed, or pegged, rate is a rate the government (central bank) sets and maintains as the official exchange rate.
		The peg was maintained until 1971, when the U.S. dollar could no longer hold the value of the pegged rate of USD 35/ounce of gold.
	www.investopedia.com /articles/03/020603.asp (1453 words)

	Lessons from the Brazilian Devaluation (Site not responding. Last check: 2007-11-05)
		Another lesson is that pegged exchange rates, especially in countries that are liberalizing their economies, are recipes for disaster.
		This has been clear since at least the outbreak of the Mexican peso crisis, when that country tried to maintain both a pegged rate and an expansionary monetary policy, and the Asian crisis, when the accumulation of malinvestments and government liabilities became a problem too large to ignore.
		Those mechanisms include fully floating exchange rates, under which the market sets the price of the currency; and fully fixed exchange rates, as with a currency board, under which governments essentially abdicate the authority of their central banks.
	www.cato.org /cgi-bin/scripts/printtech.cgi/dailys/02-18-99.html (815 words)

	JEC Press Release
		Turkey's crawling pegged exchange rate, supported by the International Monetary Fund, collapsed in February 2001.
		A floating exchange rate can work well when supported by an appropriate framework, including a commitment to low inflation, protection from short-term political pressures, and accountability for achieving monetary stability.
		Another way of establishing fixed exchange rates is to establish a common multinational currency, like the twelve European countries that have replaced their separate national currencies with the euro.
	www.house.gov /jec/press/2002/01-25-02.htm (457 words)

	Economic Issues No. 13 -- Fixed or Flexible?--Getting the Exchange Rate Right in the 1990s
		As a practical matter, however, most developing countries are still not well-placed to allow their exchange rates to float totally freely.
		Indeed, in 116 separate cases between 1975 and 1996–where an exchange rate fell at least 25 percent within a year–nearly half were under flexible regimes.
		When capital inflows accelerate, if the exchange rate is prevented from rising, inflationary pressures build up and the real exchange rate will appreciate through higher domestic inflation.
	www.imf.org /external/pubs/ft/issues13 (4503 words)

	Pegged - Wikipedia, the free encyclopedia
		a pegged currency, more formally called a fixed currency
		a pegged exchange rate, more formally called a fixed exchange rate
		This is a disambiguation page — a list of pages that otherwise might share the same title.
	en.wikipedia.org /wiki/Pegged (86 words)

	JEC Press Release (Site not responding. Last check: 2007-11-05)
		"A pegged exchange rate is one that is neither solidly fixed nor freely floating.
		However, pegged rates have proved to be an invitation to currency speculators to make money at the expense of taxpayers in countries that have pegged rates.
		Turkey's pegged rate, which collapsed in February, is a recent case of an IMF-approved pegged rate that brought severe economic problems in its wake.
	www.house.gov /jec/press/2001/11-01-01.htm (389 words)

	An analysis of pegged exchange rate regime between Bhutan and India
		This paper investigates whether the pegged exchange rate between the Bhutanese and Indian currencies is the best system for Bhutan’s economy.
		Since the introduction of the Bhutanese Ngultrum in 1974 it has been pegged at par with the Indian Rupee; it does not have independent exchange rates with other currencies, and both Rupees and Ngultrums are accepted as legal tender in Bhutan.
		However the government can withdraw from the peg at any time, and opt either for an independent flexible exchange rate, or a peg to some other currency.
	www.eldis.org /static/DOC15570.htm (385 words)

	Made Event Message Board - Argentina Update
		Duhalde’s actions as president did nothing but stoke the recessionary fires by devaluing the Peso from its then-pegged rate, and the economy was left in shambles until early 2003 when it started showing some life after the election of current president, Kirchner.
		For the time being, however, the large gap in between spot and future rates indicates that there is still a residual lack of confidence, regardless of the short-term appreciation.
		They pegged themselves to the dollar in 1970, but while their economy didn't grow, the US's did, and as the Dollar strengthened for a period of 20 years Argentina's did not.
	www.madeevent.com /bbs/archive/index.php/t-4578 (3541 words)

	ROUNDUP Hong Kong says no change to its pegged rate system after China move - Forbes.com (Site not responding. Last check: 2007-11-05)
		The currency was fixed at 8.11 yuan to the dollar compared to the old rate of 8.2765 yuan, sparking an immediate and sharp fall in the US unit against several Asian currencies.
		We in Hong Kong have made sufficient preparations,' Yam said, referring to a move in May when the de facto central bank modified the local peg slightly in an effort to curb speculative fund inflows linked to expectations the Chinese yuan would be revalued.
		Hong Kong's own pegged system dates back to 1983 when the local currency was fixed at 7.80 to the US dollar as the then British authorities sought to maintain confidence in the territory in the face of massive uncertainty during talks with Beijing for the return of the colony to Chinese rule in 1997.
	www.forbes.com /home_asia/feeds/afx/2005/07/21/afx2151334.html (680 words)

	pegged exchange rate system (English to Turkish translation glossary) Finance,Bus/Financial
		pegged exchange rate system (English to Turkish translation glossary) Finance,Bus/Financial
		To learn more about these changes and to share your feedback, please visit this forum topic.
		pegged exchange rate arkadaslarin soyledigi gibi ne anchored (capalý) ne de fixed (sabit) tir...
	www.proz.com /?sp=h&id=37790 (252 words)

	CIA - The World Factbook -- Field Listing - Exchange rates (Site not responding. Last check: 2007-11-05)
		note: the Comoran franc is pegged to the euro at a rate of 491.9677 Comoran francs per euro
		note: effective October 2000, the exchange rate is determined as the weighted average of buying and selling exchange rates of all transactions of commercial banks and stock exchanges with the public
		note: during 1998, the exchange rate splintered into four distinct rates; in January 1999 the government floated the guilder, but subsequently fixed it when the fl-market rate plunged; in January 2004, the government introduced the Surinamese dollar as replacement for the guilder, tied to a US dollar-dominated currency basket
	www.phatnav.com /factbook/fields/2076.html (4125 words)

	Hong Kong says no change to its pegged exchange rate system after China move - Forbes.com (Site not responding. Last check: 2007-11-05)
		HONG KONG (AFX) - The government has no plans to change the Hong Kong dollar's pegged exchange rate system to the US dollar following China's revaluation of the yuan, acting Financial Secretary Stephen Ip said.
		'The government has no intention at all to change the Linked Exchange rate system which has served Hong Kong well for more than 21 years and has been the anchor of our economic stability,' Ip said in a statement.
		Ip said however that the reform of the yuan's exchange rate will likely benefit the Hong Kong economy.
	www.forbes.com /afxnewslimited/feeds/afx/2005/07/21/afx2151082.html (452 words)

	Dual exchange rates under pegged interest rate and balance-of-payments crisis
		Dual exchange rates under pegged interest rate and balance-of-payments crisis
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	ideas.repec.org /a/eee/jimfin/v12y1993i2p170-181.html (126 words)

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