01691cas a2200241 a 4500 AALejournalIMF002834 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451850925 1018-5941 BD-DhAAL BD-DhAAL Agenor, Pierre-Richard. Credibility and Exchange Rate Management in Developing Countries / Pierre-Richard Agenor. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (43 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 The paper examines the role of credibility in the conduct of exchange rate policy in developing countries, The analysis is based on a model in which policymakers are concerned about inflation and external competitiveness. Price setters in the nontraded goods sector of the economy adjust prices in reaction to anticipated fluctuations in the domestic price of tradable goods. This type of model is showm to generate a 'devaluation bias' which undermines the credibility of a fixed exchange rate. The effect of reputational factors, signaling considerations, and joining a currency union as possible solutions to this bias is examined. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1991/087 Full text available on IMF http://elibrary.imf.org/view/journals/001/1991/087/001.1991.issue-087-en.xml IMF e-Library