Fear Of Floating
AbstractMany emerging market countries have suffered financial crises. One view blames soft pegs for these crises. Adherents of this view suggest that countries move to corner solutions-hard pegs or floating exchange rates. We analyze the behavior of exchange rates, reserves, and interest rates to assess whether there is evidence that country practice is moving toward corner solutions. We focus on whether countries that claim they are floating are indeed doing so. We find that countries that say they allow their exchange rate to float mostly do not-there seems to be an epidemic case of "fear of floating." © 2001 the President and Fellows of Harvard College and the Massachusetts Institute of Technology
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Bibliographic InfoArticle provided by MIT Press in its journal The Quarterly Journal of Economics.
Volume (Year): 117 (2002)
Issue (Month): 2 (May)
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Web page: http://mitpress.mit.edu/journals/
Other versions of this item:
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- The Financial Cycle and Macroeconomics: What Have we Learnt? (Claudio Borio)
by Nicolas Cachanosky in Punto de Vista Economico on 2012-12-10 21:15:49
- Corruption and the exchange rate regime
by Economic Logician in Economic Logic on 2011-11-28 15:56:00
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