A macro-appraisal of the kina float

Abstract

The appraisal of Papua New Guinea?s floating of its currency focuses on the appropriateness of the policy and the currency?s interactions with, and impact on, key macroeconomic variables, the balance-of-payments and broad-based economic growth. Considering the erratic macroeconomic environment, including bad fiscal policymaking, unsteady exchange rate market conditions, unstable parliamentary democracy, and poor governance, it is judged that the kina-float regime has performed fairly well. Show more