This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

The Viability of Fixed Exchange Rate Commitments: Does Politics Matter? A Theoretical and Empirical Investigation

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Pierre-Guillaume Méon ()
Jean-Marc Rizzo ()
Abstract

This article studies the connection between political instability and the sustainability of an exchange rate regime. A model based on the credibility of monetary policy shows that political unrest should be correlated with the adoption of flexible exchange rates. That intuition is tested using various measures of political instability on a panel of 125 countries between 1980 and 1994. Copyright Kluwer Academic Publishers 2002

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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.

File URL: http://hdl.handle.net/10.1023/A:1013916013825
File Format: text/html
File Function:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by Springer in its journal Open Economies Review.

Volume (Year): 13 (2002)
Issue (Month): 2 (April)
Pages: 111-132
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:openec:v:13:y:2002:i:2:p:111-132

Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100323

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: exchange rate regimes; political uncertainty; credibility;

Other versions of this item:

References listed on IDEAS
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.:
  1. Susanne Lohmann, 1998. "Rationalizing the Political Business Cycle: A Workhorse Model," Economics and Politics, Blackwell Publishing, vol. 10(1), pages 1-17, 03. [Downloadable!] (restricted)
  2. Torben Andersen, 1998. "Shocks and the Viability of a Fixed Exchange Rate Commitment," Open Economies Review, Springer, vol. 9(2), pages 139-156, April. [Downloadable!] (restricted)
  3. Collins, S.M. & Giavazzi, F., 1992. "Attitudes Towards Inflation and the Viability of Fixed Exchange Rates: Evidence from the EMS," Harvard Institute of Economic Research Working Papers 1592, Harvard - Institute of Economic Research.
    Other versions:
  4. Ernesto Stein and Jorge Streb., 1994. "Political Stabilization Cycles in High Inflation Economies," Center for International and Development Economics Research (CIDER) Working Papers C94-039, University of California at Berkeley.
    Other versions:
  5. Susan M. Collins & Francesco Giavazzi, 1993. "Attitudes toward Inflation and the Viability of Fixed Exchange Rates: Evidence from the EMS," NBER Chapters, in: A Retrospective on the Bretton Woods System: Lessons for International Monetary Reform, pages 547-586 National Bureau of Economic Research, Inc. [Downloadable!]
  6. Robert J. Barro & David B. Gordon, 1984. "Rules, Discretion and Reputation in a Model of Monetary Policy," NBER Working Papers 1079, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Milesi-Ferretti, G-M & Razin, A, 1996. "Current-Account Sustainability," Princeton Studies in International Economics 81, International Economics Section, Departement of Economics Princeton University,.
  8. Edwards, Sebastian, 1996. "Exchange Rates and the Political Economy of Macroeconomic Discipline," American Economic Review, American Economic Association, vol. 86(2), pages 159-63, May. [Downloadable!] (restricted)
  9. Reinhart, Carmen & Kaminsky, Graciela & Lizondo, Saul, 1998. "Leading Indicators of Currency Crises," MPRA Paper 6981, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  10. Alesina, Alberto, 1987. "Macroeconomic Policy in a Two-Party System as a Repeated Game," The Quarterly Journal of Economics, MIT Press, vol. 102(3), pages 651-78, August. [Downloadable!] (restricted)
  11. Klein, Michael W. & Marion, Nancy P., 1997. "Explaining the duration of exchange-rate pegs," Journal of Development Economics, Elsevier, vol. 54(2), pages 387-404, December. [Downloadable!] (restricted)
    Other versions:
  12. Melvin, Michael, 1985. "The Choice of an Exchange Rate System and Macroeconomic Stability," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 17(4), pages 467-78, November. [Downloadable!] (restricted)
  13. Frieden, Jeffry A., 1991. "Invested interests: the politics of national economic policies in a world of global finance," International Organization, Cambridge University Press, vol. 45(04), pages 425-451, September. [Downloadable!]
    Other versions:
  14. Honkapohja, Seppo & Pikkarainen, Pentti, 1992. "Country Characteristics and the Choice of the Exchange Rate Regime: Are Mini-skirts Followed by Maxis?," CEPR Discussion Papers 744, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  15. Gulcin Ozkan & Alan Sutherland, . "A Currency Crisis Model with an Optimising Policymaker," Discussion Papers 96/11, Department of Economics, University of York.
    Other versions:
Full references

Cited by:
(explanations, 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.)

  1. Mehmet Güçlü, 2008. "The Determinants of Exchange Rate Regimes in Emerging Market Economies," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Proceedings of the Conference on Emerging Economic Issues in a Globalizing World, pages 177-191 Izmir University of Economics. [Downloadable!]
  2. Fabrizio Carmignani & Emilio Colombo & Patrizio Tirelli, 2005. "Consistency versus credibility: how do countries choose their exchange rate regime?," International Finance 0502001, EconWPA. [Downloadable!]
    Other versions:
  3. Mehmet Guclu, 2008. "The Determinants of Exchange Rate Regimes in Emerging Market Economies," Working Papers 0806, Ege University, Department of Economics. [Downloadable!]
  4. von Hagen, Jürgen & Zhou, Jizhong, 2004. "The Choice of Exchange Rate Regime in Developing Countries: A Multinational Panel Analysis," CEPR Discussion Papers 4227, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Statistics
Access and download statistics

Did you know? Apart from a small start up grant in the 1990's, RePEc has received no funding and lives on the help of volunteers.

This page was last updated on 2009-12-8.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.