Are Emerging Market Countries Learning to Float?

Author/Editor:

Dalia S Hakura

Publication Date:

May 1, 2005

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper finds that exchange rate flexibility in emerging market countries has increased over the past decade. This "learning to float" appears to have involved a strengthening of monetary and financial policy frameworks aimed at directly addressing the key vulnerabilities that give rise to the "fear of floating." The results in the paper suggest that the trend toward greater exchange rate flexibility, alongside a strengthening of banking supervision, has afforded emerging market countries more monetary policy independence.

Series:

Working Paper No. 2005/098

Subject:

Bank supervision Exchange rate arrangements Exchange rate flexibility Exchange rates Monetary policy frameworks

English

Publication Date:

May 1, 2005

ISBN/ISSN:

9781451861174/1018-5941

Stock No:

WPIEA2005098

Pages:

34

Please address any questions about this title to publications@imf.org