Exchange Rate Regime Considerations for Jordan and Lebanon
42 Pages Posted: 31 Jan 2006
Date Written: June 2003
Abstract
This paper addresses the issue of the appropriate exchange rate regimes for Jordan and Lebanon in the context of the literature on optimum currency areas and the arguments concerning the use of the exchange rate as a nominal anchor for the economy. It presents some empirical results on the nature of output shocks in Jordan and Lebanon in the recent past, on the price sensitivity of exports from Jordan, and on currency and asset substitution in both countries. It does not directly address the issue of whether the current exchange rate in either country is overvalued or not, nor does it discuss the issue of an appropriate exit strategy from the current peg.
Keywords: exchange rate regime, optimum currency area, nominal anchor
JEL Classification: F36, F41
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Paper statistics
Recommended Papers
-
The Modern History of Exchange Rate Arrangements: A Reinterpretation
By Carmen Reinhart and Kenneth Rogoff
-
Fixing Exchange Rates: A Virtual Quest for Fundamentals
By Robert P. Flood and Andrew Kenan Rose
-
The Mirage of Fixed Exchange Rates
By Maurice Obstfeld and Kenneth Rogoff
-
Optimum Currency Areas and Key Currencies: Mundell I Versus Mundell Ii
-
No Single Currency Regime is Right for All Countries or at All Times