Coriolanus
Banned
Could they peg the value initially for say a month to avoid immediate inflation, and then switch to floating / currency exchange afterward? This would help to get some price stability going.
That's part of the measures that Brazil took once it adopted the Real. Initially it was pegged to the dollar.
Going back to those times makes for a fun graph.
we unpegged it in 99 (which was generally considered A Bad Move because we shoulda done it way earlier, but w/e). This happened:
mammoth spike in 2003 was the market telling us how much it loved our electing of a "leftist" president.
Still would be hard pressed to find anything close to the 15+ years that the FMI paper suggested staying the course would take.