YOSHINO, NAOYUKI; KAJI, SAHOKO; ASONUMA, TAMON - In: The Singapore Economic Review (SER) 57 (2012) 04, pp. 1250024-1
This paper determines whether adopting the basket-peg rather than the floating regime is optimal for emerging market countries. Under the basket-peg regime, there is a trade-off between practical usefulness and welfare losses associated with capital movements across countries. We develop a...