The Papua New Guinea Kina's Fear of Floating

23 Pages Posted: 26 Jul 2005  

Chakriya Bowman

Australian National University - Crawford School of Economics and Government

Date Written: June 2005

Abstract

Calvo and Reinhart (2002) demonstrated that there is a pervasive 'fear of floating' to be found in emerging market currencies, and that officially announced currency regimes may diverge from actual central bank practice. The Papua New Guinea kina is officially a floating currency, but there are a number of reasons why this is unlikely to be the case in practice. This analysis uses the Calvo and Reinhart method to show that, like many other emerging market 'floating' currencies, the kina more closely resembles a managed regime.

Keywords: Foreign exchange, currency behavior

JEL Classification: F31, G15

Suggested Citation

Bowman, Chakriya, The Papua New Guinea Kina's Fear of Floating (June 2005). Available at SSRN: https://ssrn.com/abstract=759204 or http://dx.doi.org/10.2139/ssrn.759204

Chakriya Bowman (Contact Author)

Australian National University - Crawford School of Economics and Government ( email )

Coombs Building 9
Canberra, Australian Capital Territory 0200
Australia

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