Accumulation-Oriented Exchange Regime: The Choice of LDC’s Who Issue Non-international Currencies
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| Title | Accumulation-Oriented Exchange Regime: The Choice of LDC’s Who Issue Non-international Currencies
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| Author | Gong Gang, Gao Jian and Li Bingnian |
| Organization | Nankai University; China Development Bank |
| Email | gongg@nankai.edu.cn；libingnian@mail.nankai.edu.cn |
| Key Words | Exchange Regime; International Currency; Developing Country |
| Abstract | In this paper, we provide an argument that the exchange regime adopted by LDC’s who issue non-international currencies might be regarded as an accumulation-oriented exchange regime (AOER). This is consistent with the observed distribution of exchange rates and exchange regimes across the world. It can also be demonstrated by a simply dynamic optimization model that re.ects the optimum behavior of a central bank from LDC’s. Although AOER might be in contrast to the provision with regard to "currency manipulator" set up by IMF, it is however an optimum choice by LDC.s under the current asymmetrical international .nancial order, which itself is unfair to LDC.s who issue non-international currencies. |
| Serial Number | WP210 |
| Time | 2012-02-15 |
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