Yoshino, Naoyuki; Kaji, Sahoko; Asonuma, Tamon - Faculty of Economics, Keio University - 2011
We quantify dynamic effect of shifts of exchange rate system from the dollar-peg to the basket- peg or floating and obtain transition paths for the shifts, based on a dynamic small open-economy model. We find that a small open country will be better off shifting to the basket-peg or floating...