Economic and Financial Committee


Emily Summers
United States

Cite as

Harvard World Model United Nations 2016 Economic and Financial Committee Guatemala

Topic A: Competitive Currency Devaluation

Manipulation of currency valuation is a tool that has become increasingly popular, especially in the aftermath of the 2007 Financial Crisis. In 2005, Guatemala restructured its exchange rate regime to a crawl-like arrangement, a type of pegged exchange rate system. This allowed the country’s monetary policy to use an inflation targeting framework to prevent the nation from succumbing entirely to the economic recession that many other countries experienced during this time period. For this reason, Guatemala recognizes the importance of nations to be able to maintain the autonomy of monetary policy and th...