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On the endogeneity of exchange rate regimes

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dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorLevy-Yeyati, Eduardo
dc.contributor.authorSturzenegger, Federico
dc.contributor.authorReggio, Iliana
dc.contributor.editorUniversidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned2009-12-14T13:17:19Z
dc.date.available2009-12-14T13:17:19Z
dc.date.issued2009-11
dc.description.abstractThe literature has identified three main approaches to account for the way exchange rate regimes are chosen: i) the optimal currency area theory; ii) the financial view, which highlights the consequences of international financial integration; and iii) the political view, which stresses the use of exchange rate anchors as credibility enhancers in politically challenged economies. Using de facto and de jure regime classifications, we test the empirical relevance of these approaches separately and jointly. We find overall empirical support for all of them, although the incidence of financial and political aspects varies substantially between industrial and non-industrial economies. Furthermore, we find that the link between de facto regimes and their underlying fundamentals has been surprisingly stable over the years, suggesting that the global trends often highlighted in the literature can be traced back to the evolution of their natural determinants, and that actual policies have been little influenced by the frequent twist and turns in the exchange rate regime debate.
dc.format.mimetypeapplication/pdf
dc.identifier.issn2340-5031
dc.identifier.repecwe098374
dc.identifier.urihttp://hdl.handle.net/10016/6031
dc.language.isoeng
dc.relation.ispartofseriesUC3M Working papers. Economics
dc.relation.ispartofseries09-47
dc.rightsAtribución-NoComercial-SinDerivadas 3.0 España
dc.rights.accessRightsopen access
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.ecienciaEconomía
dc.subject.jelF30
dc.subject.jelF33
dc.subject.otherExchange rates
dc.subject.otherGrowth
dc.subject.otherImpossible trinity
dc.subject.otherDollarization
dc.subject.otherCapital flows
dc.titleOn the endogeneity of exchange rate regimes
dc.typeworking paper*
dspace.entity.typePublication
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