Abstract
Given the likelihood of further fiscal and monetary indiscipline in the future, the authors look at what exchange rate regime may best reduce the scope for such indiscipline in Papua New Guinea. They argue that a 'strongly-fixed' regime such as a currency board or, preferably, changing to the Australian dollar would be best - to the benefit of reductions in currency, interest rate and inflation risks.
Original language | English |
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Pages (from-to) | 36-45 |
Number of pages | 10 |
Journal | Pacific Economic Bulletin |
Volume | 15 |
Issue number | 2 |
Publication status | Published - 2000 |