Meissner, Christopher M.; Oomes, Nienke - In: Journal of International Money and Finance 28 (2009) 3, pp. 522-547
What determines the currency to which countries peg or "anchor" their exchange rate? Data for over 100 countries between 1980 and 1998 reveal trade network externalities are a key determinant of anchor currency choice. This implies currency anchoring strategies could be sub-optimal. Hence,...