TY  - BOOK
AU  - Imam,Patrick A.
TI  - Exchange Rate Choices of Microstates
T2  - IMF Working Papers; Working Paper
SN  - 1451962002 :
SN  - 1018-5941
PY  - 2010///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Central Bank
KW  - imf
KW  - Currency Board
KW  - Exchange Rate
KW  - Fixed Exchange Rate
KW  - Geweke-Hajivassiliou-Keane Multivariate Simulator
KW  - Inflation
KW  - Bahrain
KW  - Bhutan
KW  - Botswana
KW  - France
KW  - United Kingdom
N2  - In this paper we first explain why most microstates (countries with less than 2 million inhabitants) have gained independence only in the last 30 years. Despite the higher costs and risks microstates face, their ability to better accommodate local preferences combined with a more integrated world economy probably explains why the benefits of independence have risen. We explain why microstates at independence have chosen either dollarization, currency board arrangements, or fixed exchange rates rather than more flexible forms of exchange rate systems. We then, using the Geweke-Hajvassiliou-Keane multivariate normal simulator, model empirically the determinants of each of the different fixed exchange rate regimes in microstates and analyze the policy implications
UR  - http://elibrary.imf.org/view/IMF001/10671-9781451962000/10671-9781451962000/10671-9781451962000.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451962000
ER  -