Issues in Monetary and Exchange Rate Policy of Developing Countries

  • Friedrich L. Sell
Conference paper
Part of the Contributions to Economics book series (CE)


The aim of this paper is to discuss issues that relate to the recent exchange rate and capital market crises in developing countries. The body of existing literature on the basics of money and exchange rate reform in developing countries — and increasingly transformation economies as well — is extremely large. I believe, however, that by now it is possible to find a certain number of essentials, i.e. elements that are conditions of sine qua non character for monetary and exchange rate reform in those countries. About the essentials there is either a wide-spread consensus or the differences in opinion have already been comprehensively identified.2 Little value would be added if one was to try to list these essentials again. I consider it a much more rewarding task to analyze those developments that despite extensive existing research „routinely“ surprise national as well as international policymakers, in spite of the dramatic experience with Mexico in 1994/95. As a matter of fact, these developments have shakened a group of newly industrializing countries in East and Southeast Asia which were treated before as the most challenging competitors for the OECD group. By now, it is less than clear what their growth prospects in the future really are.


Exchange Rate Banking System Real Exchange Rate Exchange Rate Policy Foreign Exchange Reserve 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Physica-Verlag Heidelberg 1998

Authors and Affiliations

  • Friedrich L. Sell
    • 1
  1. 1.University of DresdenDresdenGermany

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