[PDF] Exchange Rate Regime Durability And Performance In Developing Countries Versus Advanced Economies eBook

Author : Aasim M. Husain
Publisher :
Page : 60 pages
File Size : 19,17 MB
Release : 2004
Category : Capital movements
ISBN :

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"Drawing on new data and advances in exchange rate regimes' classification, we find that countries appear to benefit by having increasingly flexible exchange rate systems as they become richer and more financially developed. For developing countries with little exposure to international capital markets, pegs are notable for their durability and relatively low inflation. In contrast, for advanced economies, floats are distinctly more durable and also appear to be associated with higher growth. For emerging markets, our results parallel the Baxter and Stockman classic exchange regime neutrality result, though pegs are the least durable and expose countries to higher risk of crisis"--NBER website

Author : Aasim M. Husain
Publisher :
Page : 45 pages
File Size : 13,68 MB
Release : 2004
Category : Economics
ISBN :

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Drawing on new data and advances in exchange rate regimes' classification, we find that countries appear to benefit by having increasingly flexible exchange rate systems as they become richer and more financially developed. For developing countries with little exposure to international capital markets, pegs are notable for their durability and relatively low inflation. In contrast, for advanced economies, floats are distinctly more durable and also appear to be associated with higher growth. For emerging markets, our results parallel the Baxter and Stockman classic exchange regime neutrality result, though pegs are the least durable and expose countries to higher risk of crisis

Author : Mr.Kenneth Rogoff
Publisher : International Monetary Fund
Page : 85 pages
File Size : 27,27 MB
Release : 2003-12-01
Category : Business & Economics
ISBN : 1451875843

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Using recent advances in the classification of exchange rate regimes, this paper finds no support for the popular bipolar view that countries will tend over time to move to the polar extremes of free float or rigid peg. Rather, intermediate regimes have shown remarkable durability. The analysis suggests that as economies mature, the value of exchange rate flexibility rises. For countries at a relatively early stage of financial development and integration, fixed or relatively rigid regimes appear to offer some anti-inflation credibility gain without compromising growth objectives. As countries develop economically and institutionally, there appear to be considerable benefits to more flexible regimes. For developed countries that are not in a currency union, relatively flexible exchange rate regimes appear to offer higher growth without any cost in credibility.

Author : Atish R. Ghosh
Publisher : International Monetary Fund
Page : 52 pages
File Size : 23,32 MB
Release : 2010-03-15
Category : Business & Economics
ISBN :

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Exchange rate regimes; Financial stability; Foreign exchange; International monetary system; Monetary policy; Reserve currencies; Reserves accumulation; Trade integration

Author : Kenneth S. Rogoff
Publisher : International Monetary Fund
Page : 90 pages
File Size : 40,11 MB
Release : 2003
Category : Business & Economics
ISBN :

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"This study assesses the historical durability and performance of alternative exchange rate regimes, with special focus on developing and emerging market countries. It suggests that the popular bipolar view of exchange rates is neither an accurate description of the past nor a likely scenario for the next decade. While the study confirms that emerging market countries need to consider adopting more flexible exchange rate regimes as they develop economically and institutionally, it also finds that fixed or relatively rigid exchange rate regimes have not performed badly for poorer countries."--Overview.

Author : Kenneth Rogoff
Publisher :
Page : 84 pages
File Size : 40,64 MB
Release : 2006
Category :
ISBN :

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Using recent advances in the classification of exchange rate regimes, this paper finds no support for the popular bipolar view that countries will tend over time to move to the polar extremes of free float or rigid peg. Rather, intermediate regimes have shown remarkable durability. The analysis suggests that as economies mature, the value of exchange rate flexibility rises. For countries at a relatively early stage of financial development and integration, fixed or relatively rigid regimes appear to offer some anti-inflation credibility gain without compromising growth objectives. As countries develop economically and institutionally, there appear to be considerable benefits to more flexible regimes. For developed countries that are not in a currency union, relatively flexible exchange rate regimes appear to offer higher growth without any cost in credibility.

Author : Pierre-Richard Agénor
Publisher : International Monetary Fund
Page : 43 pages
File Size : 43,77 MB
Release : 1991-09-01
Category : Business & Economics
ISBN : 1451850921

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The paper examines the role of credibility in the conduct of exchange rate policy in developing countries, The analysis is based on a model in which policymakers are concerned about inflation and external competitiveness. Price setters in the nontraded goods sector of the economy adjust prices in reaction to anticipated fluctuations in the domestic price of tradable goods. This type of model is showm to generate a “devaluation bias” which undermines the credibility of a fixed exchange rate. The effect of reputational factors, signaling considerations, and joining a currency union as possible solutions to this bias is examined.

Author : Mr.Mohsin S. Khan
Publisher : International Monetary Fund
Page : 38 pages
File Size : 13,32 MB
Release : 1991-05-15
Category : Business & Economics
ISBN : 9781557752093

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This paper addresses analytical aspects of exchange rate policy and emphasizes the relationship among exchange rate flexibility, financial discipline, and international competitiveness.

Author : W. Max Corden
Publisher : MIT Press
Page : 292 pages
File Size : 32,31 MB
Release : 2004-08-20
Category : Business & Economics
ISBN : 9780262262118

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Most of the literature on exchange rate regimes has focused on the developed countries. Since the recent crises in emerging markets, however, attention has shifted to the choice of exchange rate regimes for developing countries, especially those that are more integrated into the world capital markets. In Too Sensational, W. Max Corden presents a systematic and accessible overview of the choice of exchange rate regimes. Reviewing many types of regimes, he shows how the choice of an exchange rate regime is related to both fiscal policy and trade policy. Building on the theory of optimum currency areas, Corden develops an analytic framework of three approaches (nominal anchor, real targets, and exchange rate stability) and three polar exchange rate regimes (absolutely fixed, pure floating, and fixed but adjustable). He considers all other regimes to be mixtures of two or three of the polar regimes. Beginning with theory and later turning to case studies of countries in Asia, Europe, and Latin America, Corden focuses on how economies react to negative and positive shocks under various exchange rate regimes. He examines in particular the Asian and Latin American currency crises of the 1990s. He concludes that although "too sensational" crises have discredited fixed but adjustable regimes, the extremes of absolutely fixed regimes or pure floating regimes need not be chosen.