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BASKET PEGS AND EXCHANGE RATE REGIME CHANGE: AUSTRALIA AND NEW ZEALAND IN THE MID‐SEVENTIES *
Author(s) -
SCHENK CATHERINE,
SINGLETON JOHN
Publication year - 2011
Publication title -
australian economic history review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.493
H-Index - 16
eISSN - 1467-8446
pISSN - 0004-8992
DOI - 10.1111/j.1467-8446.2011.00327.x
Subject(s) - float (project management) , interim , currency , economics , china , exchange rate , renminbi , exchange rate regime , international economics , monetary economics , political science , management , law
The adoption of a basket peg by China in July 2005 raised interest in this form of exchange rate regime. This paper explores the emergence of the basket peg in the early 1970s, using New Zealand and Australia as case studies to examine why it was adopted, how it operated, and their policy‐makers' use of it to influence various goals. We highlight the complexity of regime choice following the collapse of Bretton Woods. For Australia and New Zealand, the basket peg was a plausible (although interim) solution when they were reluctant either to peg to a single currency or float.