Dynamics of a Floating Exchange Rate Regime

Policy Time-Inconsistency: A Comparison of Managed Floating Exchange Rate and Controlled Exchange Rate Regimes

Some empirical and theoretical studies have emphasized on fixed exchange rate regime in controlling time inconsistency, while others consider the role of target zone regime as an important factor. Thus there is no general consensus to decide which exchange rate regime may bring about less time-inconsistency. The main purpose of this study is to investigate policy time-inconsistency in exchange ...

Choosing an Exchange Rate Regime

1The sequence within intermediate regimes is somewhat arbitrary. For example, if the band is as narrow as 2 4 % as in the European Exchange Rate Mechanism or even 1% as under Bretton Woods, then it would properly belong closer to the fixed-rate end of the spectrum. Similarly, if the adjustable peg involved a devaluation or revaluation every time a moderate shock came along, it would properly be...

The Political Economy of Exchange Rate Regime Determination: A Comparison of Developing and Developed Countries

The non-optimal choice of exchange rate policy is a serious obstacle to improving the country's economic situation. Considering that the involvement of political economy factors in the adoption of exchange rate policy causes its inefficiency and the choice of exchange rate regime in developing countries seems to has been more influenced by the political economy factors, the study of amount and ...

New Estimation of China’s Exchange Rate Regime

The paper updates the answer to the question: what precisely is the exchange rate regime that China has put into place since 2005, when it announced a move away from the dollar peg? Is it a basket anchor with the possibility of cumulatable daily appreciations, as was announced at the time? We apply to this question a new approach to estimating countries’ de facto exchange rate regimes, a synthe...

The Impact of Monetary Regime on the Exchange Rate Pass-Through under Exchange Rate Volatility (Dynamic Panel Data Approach)