Evolution and Performance of Exchange Rate Regimes

 
Author/Editor: Rogoff, Kenneth ; Husain, Aasim M. ; Mody, Ashoka ; Brooks, Robin ; Oomes, Nienke
 
Publication Date: December 01, 2003
 
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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: 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.
 
Series: Working Paper No. 03/243
Subject(s): Exchange rate regimes | Economic conditions

Author's Keyword(s): Exchange Rate Regimes | economic performance
 
English
Publication Date: December 01, 2003
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2432003 Pages: 83
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
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