Currency and monetary arrangements for East Timor

Date

2001

Authors

de Brouwer, Gordon

Journal Title

Journal ISSN

Volume Title

Publisher

Asia Pacific Press

Abstract

East Timor faces an important decision in choosing its currency and monetary arrangements. This paper sets out the policy issues in deciding whether to fix or float the currency, including implications for the choice of the framework for monetary policy. It assesses the relative merits of different fixed exchange-rate regimes, including the standard peg, currency board and ‘dollarisation’ (by which a country decides to use another country’s currency as its own), and of different target currencies, including the euro, the rupiah, the US dollar and the Australian dollar. It argues that East Timor should adopt a strongly fixed exchange rate. The best option is probably dollarisation using either the US dollar or the Australian dollar.

Description

Keywords

East Timor, currency, monetary arrangements, policy issues, dollarisation, fixed exchange rate, standard peg, currency board

Citation

Source

Type

Journal article

Book Title

East Timor: Development Challenges for the World�s Newest Nation

Entity type

Access Statement

License Rights

DOI

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