International Capital Markets and Exchange Rate Stabilization in the CIS

27 Pages Posted: 29 Jun 2005

See all articles by Gunther Schnabl

Gunther Schnabl

University of Leipzig - Institute for Economic Policy

Abstract

In this paper, we examine the rationale for dollar and euro pegging in Russia and the CIS. We consider macroeconomic stabilization and transaction costs for international trade as rationales for pegging to the euro. Dollarization of international assets and liabilities are examined as determinants of exchange rate stabilization against the dollar. The impact of network externalities from a common anchor for all CIS countries is explored. Tests on de facto exchange rate stabilization reveal that dollar pegging has been pervasive in the CIS.

Keywords: CIS, Exchange Rate Systems

JEL Classification: F31, F32

Suggested Citation

Schnabl, Gunther, International Capital Markets and Exchange Rate Stabilization in the CIS. Available at SSRN: https://ssrn.com/abstract=748905

Gunther Schnabl (Contact Author)

University of Leipzig - Institute for Economic Policy ( email )

Institute for Economic Policy
Grimmaische Straße 12
Leipzig, 04109
Germany

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