## Do “Flexible” Exchange Rates of Developing Countries Behave Like the Floating Exchange Rates of Industrialized Countries?

_IMF Working Papers, May 1, 2002_

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## Bibliographic details
- Authors: Peter Wickham
- Published: May 1, 2002
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451850451.001

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### Summary
- The paper examines the behavior of daily spot exchange rates for a sample of industrialized countries generally considered to be floating with only occasional official foreign exchange market intervention.
- It compares that behavior to the exchange rates of a sample of sixteen developing countries whose regimes are often classified as being “flexible”.
- Considerable differences in the way these developing countries’ exchange rate regimes operate are apparent from the daily data.
- Some developing countries share similarities with the regimes of the industrialized countries.
- Other developing countries demonstrate regime shifts and other marked discontinuities.

### Key findings and analytical emphasis
- Daily spot exchange rate behavior for industrialized "floating" regimes is used as the benchmark for comparison.
- The developing-country sample (n = 16) exhibits heterogeneity:
  - Subset showing similarities to industrialized floating regimes.
  - Subset exhibiting regime shifts and marked discontinuities in daily exchange rate data.
- The analysis highlights that classification of a developing country’s regime as “flexible” may mask important differences observable at daily frequency.

### Data and scope
- Frequency: daily spot exchange rates.
- Samples:
  - Industrialized countries: described as generally floating with only occasional official foreign exchange market intervention.
  - Developing countries: sample of sixteen countries often classified as “flexible”.
- Page length: 38 pages.

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/do-flexible-exchange-rates-of-developing-countries-behave-like-the-floating-exchange-rates-15636_