To Float Or Not To Float? Currency Regimes And Growth
AbstractOne recent line of research on exchange rates is the effect of fixed or floating currencies on long-term growth. One difficulty with such studies is that emerging market countries with certain imbalances and potentially hard-to-observe policy distortions are more likely to choose a fixed exchange rate regime, and thus estimates of the effect of exchange rates on growth are likely to be biased upward in magnitude. Results here indicate that when a measure of domestic distortions and macroeconomic imbalances is added to the model the exchange rate regime at most exacerbates existing distortions, and no longer appears to have an independent, significant effect on growth, contrary to some recent findings.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.
Volume (Year): 31 (2006)
Issue (Month): 2 (December)
International Finance; Open Economy Macroeconomics; Economic Growth;
Find related papers by JEL classification:
- F3 - International Economics - - International Finance
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rudi Dornbusch, 2001.
"Fewer Monies, Better Monies,"
American Economic Review,
American Economic Association, vol. 91(2), pages 238-242, May.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2002.
"The Modern History of Exchange Rate Arrangements: A Reinterpretation,"
NBER Working Papers
8963, National Bureau of Economic Research, Inc.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2004. "The Modern History of Exchange Rate Arrangements: A Reinterpretation," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 1-48, February.
- Reinhart, Carmen & Rogoff, Kenneth, 2004. "The modern history of exchange rate arrangements: A reinterpretation," MPRA Paper 14070, University Library of Munich, Germany.
- Manuk Ghazanchyan & Janet Gale Stotsky, 2013. "Drivers of Growth: Evidence from Sub-Saharan African Countries," IMF Working Papers 13/236, International Monetary Fund.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Changhui Kang).
If references are entirely missing, you can add them using this form.