Mechanics of a Successful Exchange-Rate Peg: Lessons for Emerging Markets (ICPSR 1246)

Version Date: Oct 31, 2001

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Principal Investigator(s):
Michael J. Dueker, Federal Reserve Bank of St. Louis; Andreas Fischer, Federal Reserve Bank of St. Louis

https://doi.org/10.3886/ICPSR01246.v1

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Summary

To the surprise of many market watchers, Thailand's exchange rate peg to the dollar collapsed in July 1997, leading to similar rounds of currency devaluations in other East Asian countries. This study seeks to determine whether there were identifiable contrasts in implementation between Thailand's peg and a perennially successful peg -- Austria's peg to the Deutsche mark -- that would have hinted at problems for Thailand prior to July 1997. The comparison suggests that Thailand was not sufficiently vigilant about keeping its inflation rate low in the early 1990s. By 1995, Thailand faced a situation in which a tight monetary policy involving high domestic interest rates would not always have created disinflationary pressure, as high interest rates also tended to attract greater capital inflow to Thailand. In this environment, Thailand's monetary policy became erratic and failed to maintain the exchange rate peg.

Citation

Dueker, Michael J., and Fischer, Andreas. Mechanics of a Successful Exchange-Rate Peg:  Lessons for Emerging Markets. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2001-10-31. https://doi.org/10.3886/ICPSR01246.v1

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Distributor(s)

Inter-university Consortium for Political and Social Research
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Data Collection Notes

  1. The file submitted is 0109md.zip, containing data and programs. These data are part of ICPSR's Publication-Related Archive and are distributed exactly as they arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.

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Original Release Date

2001-10-31

Version History

2018-02-15 The citation of this study may have changed due to the new version control system that has been implemented. The previous citation was:

  • Dueker, Michael J., and Andreas Fischer. Mechanics of a Successful Exchange-Rate Peg: Lessons for Emerging Markets. ICPSR01246-v1. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2001-10-31. http://doi.org/10.3886/ICPSR01246.v1

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