At 10:38 PM 12/29/2001 +0100, you wrote: >As long as dollar remains the planetary account unit of debt, floating >currencies remain more effective than a TT associated to a steady exchange >rate that would be as disastrous to Europe as it has been to Argentina. > >Regards, > >Romain Kroës > >
This was the conclusion I came to with the CGE model of Argentina with financial markets which I built for my dissertation. I looked at how the model responded to external shocks in the presence of a unilateral TT (actually, it was more like the Chilean tax) under fixed and flexible exchange rates. From simulation results, the flexible exchange rate regime seemed to be preferable to the other alternatives. Alan _________________________________________________________ Do You Yahoo!? Get your free @yahoo.com address at http://mail.yahoo.com
