Series: IMF Working Papers
Author(s): Selim Elekdag , and Ivan Tchakarov
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 April 2004
Keywords: financial accelerator, debt-to-GDP threshold, second-order approximation, exchange rate, exchange rate regimes, exchange rate regime, flexible exchange rate, fixed exchange rate, Open Economy Macroeconomics,
The debate about the appropriate choice of exchange rate regime is fundamental in international economics. This paper develops a small open-economy model with balance sheet effects and compares the performance of f...