Social and Behavioral Sciences Commons^™

Exchange Rate Stability And Its Implications For Economic Development Of The Less Developed Countries, Chileshe Hilda Wabo Gowon

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

The question that Less Developed Countries have faced since the advent of floating exchange rates among the Industrial Countries is whether they should also adopt a floating exchange rate system. The Less Developed Countries have opted for a pegged exchange rate system, since their economic characteristics and institutional structure indicate that floating for the Less Developed Countries would result in volatile or unstable exchange rates. Since Less Developed Countries peg t heir exchange rates in the presence of flexible rates among industrial countries, the Less Developed Countries pegged exchange rates move in accordance to the exchange rates to which they …