01857cas a2200253 a 4500 AALejournalIMF008671 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451980066 1018-5941 BD-DhAAL BD-DhAAL Jurzyk, Emilia. Will You Buy My Peg? : The Credibility of a Fixed Exchange Rate Regime As a Determinant of Bilateral Trade / Emilia Jurzyk, Bernhard Fritz-Krockow. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (25 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 This paper examines the relationship between fixed exchange rate arrangements and trade using a gravity model of international trade together with bilateral trade data from 24 countries from the Caribbean and Latin America for the period 1960-2001. The analysis indicates that a credible fixed peg has a positive impact on the value of bilateral trade. Moreover, the positive impact on trade is more pronounced with a stricter definition of the fixed peg or a longer duration of the peg. This supports the argument that the credibility of an exchange rate peg is an important element to determine bilateral trade. There is, however, no evidence to suggest that a currency union provides additional benefits. Mode of access: Internet Fritz-Krockow, Bernhard. IMF Working Papers; Working Paper ; No. 2004/165 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/165/001.2004.issue-165-en.xml IMF e-Library