productive to view them as influencing incentive structures in a world of multiple relevant actors. From this perspective, pegged … discretionary monetary and fiscal policies. In particular exchange rate pegging gives front loaded benefits and delayed costs. This … by pegged rates often fail to provide sufficient monetary and fiscal restraint to avoid such crises. They also tend to …

This note discusses the challenges that emerging markets face in managing capital flow volatility. The note lays out a … conceptual framework for evaluating deviations from a first-best world in which capital flows have desirable characteristics, and …