01763cas a2200253 a 4500 AALejournalIMF001859 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451845273 1018-5941 BD-DhAAL BD-DhAAL Rebucci, Alessandro. Monetary Rules for Emerging Market Economies / Alessandro Rebucci, Fabio Ghironi. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (41 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We compare the performance of a currency board, inflation targeting, and dollarization in a small, open developing economy with a liberalized capital account. We focus on the transmission of shocks to currency and country risk premia and on the role of fluctuations in premia in the propagation of other shocks. We calibrate our model on Argentina. The framework matches the second moments of key variables well. Welfare analysis suggests that dollarization is preferable to alternative regimes because it removes currency premium volatility. However, a currency board can match dollarization on welfare grounds if the central bank holds a sufficiently large stock of foreign reserves. Mode of access: Internet Ghironi, Fabio. IMF Working Papers; Working Paper ; No. 2002/034 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/034/001.2002.issue-034-en.xml IMF e-Library