Does the Exchange Regime Matter for Inflation and Growth?

Author/Editor: Ghosh, Atish R. ; Gulde, Anne Marie ; Ostry, Jonathan David ; Wolf, Holger C.
Publication Date: September 12, 1996
Electronic Access: Free Full text

Summary: Although the theoretical relationships are ambiguous, evidence suggests a strong link between the choice of the exchange rate regime and economic performance. The paper argues that adopting a pegged exchange rate can lead to lower inflation, but also to slower growth in productivity. It finds that on average per capita GDP growth was slightly faster under floating regimes than under pegged exchange regimes.
Series: Economic Issues No. 2
Subject(s): Exchange rate regimes | Inflation | Economic growth | Productivity

Publication Date: September 12, 1996
ISBN/ISSN: ISBN 1-55775-614-7 ; ISSN 1020-5098 Format: Paper
Stock No: EIIEA0021996 Pages: 21
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