Mechanics of a Successful Exchange-Rate Peg [electronic resource] Lessons for Emerging Markets Michael J. Dueker, Andreas Fischer

2001-10-31

Ann Arbor, Mich. Inter-university Consortium for Political and Social Research [distributor] 2001

1 online resource

Numeric

To the surprise of many market watchers, Thailand's exchange rate peg to the dollar collapsed in July 1997, leading to similar rounds of currency devaluations in other East Asian countries. This study seeks to determine whether there were identifiable contrasts in implementation between Thailand's peg and a perennially successful peg -- Austria's peg to the Deutsche mark -- that would have hinted at problems for Thailand prior to July 1997. The comparison suggests that Thailand was not sufficiently vigilant about keeping its inflation rate low in the early 1990s. By 1995, Thailand faced a situation in which a tight monetary policy involving high domestic interest rates would not always have created disinflationary pressure, as high interest rates also tended to attract greater capital inflow to Thailand. In this environment, Thailand's monetary policy became erratic and failed to maintain the exchange rate peg.Cf: http://doi.org/10.3886/ICPSR01246.v1

Also available as downloadable files.

Data Sets / Online

English

June 14, 2019

Dataset

Data sets.