Expected Regime Change: Transition toward Nominal Exchange Rate Stability

Economic Transition and the Exchange-Rate Regime

Economic Transition and the Exchange-Rate Regime Author(s): Jeffrey D. Sachs Reviewed work(s): Source: The American Economic Review, Vol. 86, No. 2, Papers and Proceedings of the Hundredth and Eighth Annual Meeting of the American Economic Association San Francisco, CA, January 5-7, 1996 (May, 1996), pp. 147-152 Published by: American Economic Association Stable URL: http://www.jstor.org/stable...

Exchange Rate Regime Analysis Using Structural Change Methods

Regression models for de facto currency regime classification are complemented by inferential techniques for tracking the stability of exchange rate regimes. Several structural change methods are adapted to these regressions: tools for assessing the stability of exchange rate regressions in historical data (testing), in incoming data (monitoring) and for determining the breakpoints of shifts in...

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...

Toward a Stable System of Exchange Rates: Implications of the Choice of Exchange Rate Regime

This paper conducts a comprehensive empirical analysis to examine the stability of the overall system of exchange rates along two dimensions: does the choice of exchange rate regime help individual countries achieve their domestic macroeconomic goals? And does this choice of regime facilitate the country’s interaction with the rest of the system? The empirical findings suggest that there is no ...

Stylized Facts of Nominal Exchange Rate Returns