We test a simple model of exchange rate regime choice with data for 65 non-OECD countries covering the period 1980-94. We find that the variance of output at home and in potential target countries as well as the correlation between home and foreign real activity are powerful and robust predictors of exchange rate regime choice. Surprisingly, a more volatile foreign economy can be an argument in...

‎The main purpose of this paper is to analyze the exchange rate volatility in Iran in the time period between 2011/11/27 and 2017/02/25 on a daily basis. As a tradable asset and as an important and effective economic  variable, exchange rate plays a decisive role in the economy of a country. In a successful economic management, the modeling and prediction of the exchange rate volatility is esse...

We use a model of international trade to show that (i) trade a¤ects exchange rate volatility and (ii) exchange rate volatility impacts trade in goods di¤erently according to their degree of di¤erentiation. In particular, commodity goods are less a¤ected by exchange rate volatility than more highly di¤erentiated products. These insights allow us to structurally address one of the main shortcomin...