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Friday, July 24, 2020 | History

2 edition of determinants of the choice between fixed and flexible exchange-rate regimes found in the catalog.

determinants of the choice between fixed and flexible exchange-rate regimes

Sebastian Edwards

determinants of the choice between fixed and flexible exchange-rate regimes

by Sebastian Edwards

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Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Foreign exchange administration.

  • Edition Notes

    StatementSebastian Edwards.
    SeriesNBER working paper series -- working paper 5756, Working paper series (National Bureau of Economic Research) -- working paper no. 5756.
    ContributionsNational Bureau of Economic Research.
    The Physical Object
    Pagination20, [8] p. ;
    Number of Pages20
    ID Numbers
    Open LibraryOL22411780M

    "The Determinants of the Choice between Fixed and Flexible Exchange-Rate Regimes," NBER Working Papers , National Bureau of Economic Research, Inc. Roberto Frankel & Martín Rapetti, " A Concise History of Exchange Rate Regimes in Latin America," CEPR Reports and Issue Briefs , Center for Economic and Policy Research (CEPR). Sebastian Edwards, "The Determinants of the Choice between Fixed and Flexible Exchange-Rate Regimes," NBER Working Papers , National Bureau of Economic Research, Inc. Ayhan Kose & Kenneth Rogoff & Eswar S Prasad & Shang-Jin Wei,

      The determinants of the choice between fixed and flexible exchange-rate regimes (No. w). National Bureau of Economic Research. This paper attempts to explain the different reasons and factors that determine the kind of currency system adopted by different nations. The case for flexible exchange rates, , Johnson, H. G. (). A 'read' is counted each time someone views a publication summary (such as the title, abstract, and list of authors), clicks on a figure, or views or downloads the full-text.

      When comparing floating to fixed exchange rate regimes, we do not find any significant differences in GDP growth, debt to asset ratios, and real exchange rate dynamics. Inflation, growth in M0 relative to reserves, and stock market volatility are significantly higher in the floating regime than in the fixed exchange rate regime, as expected.   Differences between Flexible and Fixed Exchange Rate System: Flexible Exchange Rate System: Advantages: It permits quicker adjustments in the exchange rate to changes in macro-economic factors such as changes in inflation rate, growth rate, and interest rates. There is less likelihood of currency overvaluation.


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Determinants of the choice between fixed and flexible exchange-rate regimes by Sebastian Edwards Download PDF EPUB FB2

The Determinants of the Choice between Fixed and Flexible Exchange-Rate Regimes Sebastian Edwards. NBER Working Paper No. Issued in September NBER Program(s):International Finance and Macroeconomics.

In recent years, analysts and policy makers alike have been evaluating the nexus between exchange rates and macroeconomic by: Sebastian Edwards, "The Determinants of the Choice between Fixed and Flexible Exchange-Rate Regimes," NBER Working PapersNational Bureau of Economic Research, Inc. Handle: RePEc:nbr:nberwo Note: IFM.

NBER Working Paper September THE DETERMINANTS OF THE CHOICE BETWEEN FIXED AND FLEXIBLE EXCHANGE-RATE REGIMES ABSTRACT In recent years, analysts and policy makers alike have been evaluating the nexus between exchange rates and macroeconomic by:   The Determinants of the Choice between Fixed and Flexible Exchange-Rate Regimes NBER Working Paper No.

w 26 Pages Posted: 31 Oct Last revised: 4 Oct Cited by:   The following points are noteworthy so far as the difference between fixed and flexible exchange rates is concerned: The exchange rate which the government sets and maintains at the same level is called fixed exchange rate.

The exchange rate that variates with the variation in market forces is called flexible exchange rate. DOI: /w Corpus ID: The Determinants of the Choice between Fixed and Flexible Exchange-Rate Regimes @article{EdwardsTheDO, title={The Determinants of the Choice between Fixed and Flexible Exchange-Rate Regimes}, author={Sebasti{\'a}n Edwards}, journal={International Finance}, year={} }.

In this section, we present the results of a PROBIT analysis (see Table 1).The models were tested in binomial and ordered multinomial versions. In the binomial regressions, the dependent variable (the exchange rate regime choice), takes the value of 0 (groups 1 and 2) or 1 (groups 3 and 4) and so opposes fixed exchange rate regimes to flexible exchange rate regimes.

Fixed or Flexible Exchange rate regimes. By Kisu Simwaka1 Summary The choice of an appropriate exchange rate regime has been a subject of ongoing debate in international economics.

The majority of African countries are small open economies and thus where the choice of the exchange rate regime is an important policy issue. This study examines the determinants of exchange rate regime choice between and for 20 Latin American countries. The study uses an ordered panel probit that takes into account economic, political and institutional factors.

EdwardsThe determinants of the choice between fixed and flexible exchange-rate regimes. National Bureau of.

M.W. Klein, in Handbook of Safeguarding Global Financial Stability, Conclusion. The choice of the exchange rate regime is one of the central macroeconomic decisions made by a government. This choice affects both a key price in the economy and the conduct of monetary policy.

Sincethere has been a wide variety of choices of the exchange rate regime, with some countries choosing to. Edwards: w The Determinants of the Choice between Fixed and Flexible Exchange-Rate Regimes: Devereux and Engel: w Fixed vs. Floating Exchange Rates: How Price Setting Affects the Optimal Choice of Exchange-Rate Regime: Feldstein: w The Euro and the Stability Pact: Ghosh, Gulde, Ostry, and Wolf: w Does the Nominal Exchange Rate Regime Matter?.

BibTeX @MISC{Edwards96thedeterminants, author = {Sebastian Edwards and Exchange-rate Regimes}, title = {The Determinants of the Choice between Fixed and Flexible Exchange Rate Regimes, Working Paper No.National Bureau of Economic Research}, year = {}}.

The following are some of the principal determinants of the exchange rate between two countries. A currency peg is a policy in which a national government sets a specific fixed exchange rate.

Downloadable. This paper investigates the determinants of exchange rate regime choice in 93 countries during Cross-country analysis of variations in international reserves and nominal exchange rates shows that (i) truly fixed pegs and independent floats differ significantly from other regimes and (ii) significant discrepancies exist between de jure and de facto flexibility.

Add tags for "The determinants of the choice between fixed and flexible exchange-rate regimes". Determinants of the choice between fixed and flexible exchange-rate regimes. Cambridge, MA: National Bureau of Economic Research, (OCoLC) Material Type: Internet resource: Document Type: Book, Internet Resource: All Authors / Contributors: Sebastian Edwards; National Bureau of Economic Research.

This is why this kind of exchange rate regime is frequently ruled out as a policy option in economic literature. The remaining choice between a more flexible exchange rate and a more credible. Within this pure definition of flexible exchange rate, we can find two types of flexible exchange rates: pure floating regimes and managed floating regimes.

On the one hand, pure floating regimes exist when, in a flexible exchange rate regime, there are absolutely no. This book explores the exchange rate regime choice and the role played by the exchange rate in the economy. Approaching the classification of exchange rate regimes from theoretical, practical and historical perspectives, the book discusses pertinent case studies, including the choice of exchange rate regime in the post-conflict case of Iraq.

The determinants of the choice between fixed and flexible exchange-rate regimes. September NBER Working Paper no. [Google Scholar]; Rizzo Rizzo, Jean-Marc. The economic determinants of the choice of an exchange rate regime: A probit analysis. Economic Letters, –. "An Empirical Investigation into Exchange Rate Regime Choice and Exchange Rate Volatility," CESifo Working Paper SeriesCESifo.

Sebastian Edwards, "The Determinants of the Choice between Fixed and Flexible Exchange-Rate Regimes," NBER Working PapersNational Bureau of Economic Research, Inc.

Paolo Mauro & Grace Juhn,   The Optimum Currency Area (OCA) theory of the s views the exchange rate primarily as an expenditure-switching device and develops a list of criteria for favouring fixed-rate against flexible-rate regimes, such as the absence of asymmetric demand shocks, high factor mobility (Mundell, ), small economic size and high economic openness (McKinnon, ), and high production diversity (Kenen, ).First, whereas the traditional ranking between fixed and floating regimes is based on a loss function that depends exclusively on output volatility, Calvo (b) shows that fixed exchange rates would always dominate flexible regimes if the function being optimized puts weight on real exchange rate volatility.