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Choosing and Assessing Exchange Rate Regimes: a Survey of the Literature

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  • Alexis Cruz-Rodriguez

    ()
    (Pontificia Universidad Católica Madre y Maestra)

Abstract

This paper attempts to provide a comprehensive overview on the theoretical and empirical analysis of the selection and assessment of exchange rate regimes. The literature can be divided into two main groups: classical and modern. The first group refers to earlier studies examining the differences between floating and fixed exchange rate regimes. The second group is focused on the trade-off between credibility and flexibility, the economic performance and currency crisis, among others. In addition, this paper reviews why many countries follow de facto regimes different from their de jure regimes.

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Article provided by Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines in its journal Revista de Analisis Economico – Economic Analysis Review.

Volume (Year): 28 (2013)
Issue (Month): 2 (October)
Pages: 37-61

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Handle: RePEc:ila:anaeco:v:28:y:2013:i:2:p:37-61

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Keywords: Exchange rate; currency crisis; optimal currency area;

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Cited by:
  1. Andrew K. Rose, 2011. "Exchange Rate Regimes in the Modern Era : Fixed, Floating, and Flaky," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 652-72, September.
  2. Nasha Ananchotikul & Nuwat Nookhwun & Paiboon Pongpaichet & Songklod Rastapana & Phurichai Rungcharoenkitkul, 2010. "The Future of Monetary Policy: Roles of Financial Stability and Exchange Rate," Working Papers 2010-07, Economic Research Department, Bank of Thailand.
  3. Rose, Andrew K, 2010. "Exchange Rate Regimes in the Modern Era: Fixed, Floating, and Flaky," CEPR Discussion Papers 7987, C.E.P.R. Discussion Papers.

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