1945

Exchange-rate regimes reform in Arab countries

The choice of exchange-rate regime is always a controversial topic. As policymakers adopt an exchange-rate regime based on the anticipation of country’s vulnerability to real versus nominal shock, the choice between a rigid and flexible regime is a complex decision that hinges on several country-specific characteristics such as the degree of capital mobility, trade share with main partners, the degree of flexibility and sustainability of fiscal policy, and the extent to which wages are sticky.

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content/books/9789210477291
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