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! ]
How to Exit from Fixed Exchange Rate Regimes Author info | Abstract | Publisher info | Download info | Related research | Statistics Asici, Ahmet Atil
Ivanova, Nadezhda
Wyplosz, Charles
Additional information is available for the following
registered author(s):
This paper improves upon the recently developed literature on exits from fixed exchange rate regimes in three ways: 1) It allows for two indicators for post-exit macroeconomic conditions, the change in the exchange rate and the change in the output gap; 2) it tests whether the distinction between orderly and disorderly exit is statistically justified, and concludes that it is not; 3) it deals with the sample selection problem. The results, subject to extensive sensitivity analysis, suggest that post-exits are better when de-pegging occur in good macroeconomic conditions – an unnatural move for most policy-makers – when world interest rates decline and in the presence of capital controls. Importantly, ‘good’ macroeconomic policies do not seem to help with post-exit performance.
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
file . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
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.
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
5141.
Download reference. The following formats are available: HTML ,
plain text ,
BibTeX ,
RIS (EndNote),
ReDIF
Length:
Date of creation: Jul 2005Date of revision:
Handle: RePEc:cpr:ceprdp:5141Contact details of provider: Postal: Centre for Economic Policy Research, 53--56 Great Sutton Street, London EC1V 0DG Phone: 44 - 20 - 7183 8801 Fax: 44 - 20 - 7183 8820
Order Information: Email:
For technical questions regarding this item, or to correct its listing, contact: ().
Keywords: exchange rate regimes macroeconomic policy Other versions of this item:
Find related papers by JEL classification: C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models F30 - International Economics - - International Finance - - - General F31 - International Economics - - International Finance - - - Foreign Exchange F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
This paper has been announced in the following NEP Reports :
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.: MASSON, Paul & RUGE-MURCIA, Francisco J., 2003.
"Explaining the Transition Between Exchange Rate Regimes ,"
Cahiers de recherche
2003-21, Universite de Montreal, Departement de sciences economiques.
[Downloadable!]
Other versions:
MASSON, Paul & RUGE-MURCIA, Francisco J., 2003.
"Explaining the Transition Between Exchange Rate Regimes ,"
Cahiers de recherche
15-2003, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
[Downloadable!] Paul Masson & Francisco J. Ruge-Murcia, 2005.
"Explaining the Transition between Exchange Rate Regimes ,"
Scandinavian Journal of Economics ,
Blackwell Publishing, vol. 107(2), pages 261-278, 06.
[Downloadable!] (restricted) Stanley Fischer, 2001.
"Exchange Rate Regimes: Is the Bipolar View Correct? ,"
Journal of Economic Perspectives ,
American Economic Association, vol. 15(2), pages 3-24, Spring.
[Downloadable!] (restricted)
Graciela L. Kaminsky & Carmen M. Reinhart, 1996.
"The twin crises: the causes of banking and balance-of-payments problems ,"
International Finance Discussion Papers
544, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Other versions: Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error ,"
Econometrica ,
Econometric Society, vol. 47(1), pages 153-61, January.
[Downloadable!] (restricted)
PIERRE-RICHARD AGÉNOR, 2004.
"Orderly exits from adjustable pegs and exchange rate bands ,"
Journal of Policy Reform ,
Taylor and Francis Journals, vol. 7(2), pages 83-108, June.
[Downloadable!] (restricted)
Kaminsky, Graciela & Lizondo, Saul & Reinhart, Carmen M., 1997.
"Leading indicators of currency crises ,"
Policy Research Working Paper Series
1852, The World Bank.
[Downloadable!]
Other versions:
Graciela Laura Kaminsky, 1997.
"Leading Indicators of Currency Crises ,"
IMF Working Papers
97/79, International Monetary Fund.
Reinhart, Carmen & Kaminsky, Graciela & Lizondo, Saul, 1998.
"Leading Indicators of Currency Crises ,"
MPRA Paper
6981, University Library of Munich, Germany.
[Downloadable!] Graciela Kaminsky & Saul Lizondo & Carmen Reinhart, 1998.
"Leading Indicators of Currency Crisis ,"
IMF Staff Papers ,
Palgrave Macmillan Journals, vol. 45(1), pages 1.
[Downloadable!] (restricted) Sebastian Edwards & Igal Magendzo, 2003.
"A Currency of One's Own? An Empirical Investigation on Dollarization and Independent Currency Unions ,"
NBER Working Papers
9514, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Roberto Chang & Andres Velasco, 1998.
"Financial Fragility and the Exchange Rate Regime ,"
NBER Working Papers
6469, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Ahmet Asici & Charles Wyplosz, 2003.
"The Art of Gracefully Exiting a Peg ,"
The Economic and Social Review ,
Economic and Social Studies, vol. 34(3), pages 211â228.
[Downloadable!]
Other versions: Alberto Alesina & Alexander Wagner, 2003.
"Choosing (And Reneging On) Exchange Rate Regimes ,"
Harvard Institute of Economic Research Working Papers
2008, Harvard - Institute of Economic Research.
[Downloadable!]
Other versions:
Alberto Alesina & Alexander Wagner, 2003.
"Choosing (and reneging on) exchange rate regimes ,"
NBER Working Papers
9809, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Alberto Alesina & Alexander F. Wagner, 2006.
"Choosing (and Reneging on) Exchange Rate Regimes ,"
Journal of the European Economic Association ,
MIT Press, vol. 4(4), pages 770-799, 06.
[Downloadable!] (restricted) Frankel, Jeffrey A. & Rose, Andrew K., 1996.
"Currency crashes in emerging markets: An empirical treatment ,"
Journal of International Economics ,
Elsevier, vol. 41(3-4), pages 351-366, November.
[Downloadable!] (restricted)
Other versions: Sergio Rebelo & Carlos A. Vegh, 2006.
"When Is It Optimal to Abandon a Fixed Exchange Rate? ,"
NBER Working Papers
12793, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Inci Ötker & Hugh Bredenkamp & A. Javier Hamann & Esteban Jadresic & R. B. Johnston & Paul R. Masson & Barry J. Eichengreen, 1998.
"Exit Strategies: Policy Options for Countries Seeking Exchange Rate Flexibility ,"
IMF Occasional Papers
168, International Monetary Fund.
Sebastian Edwards, 1996.
"The Determinants of the Choice between Fixed and Flexible Exchange-Rate Regimes ,"
NBER Working Papers
5756, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
repec:rus:hseeco:181565 is not listed on IDEAS
Inci Ötker & Akira Ariyoshi & Jorge Iván Canales Kriljenko & Karl Friedrich Habermeier & Andrei Kirilenko & Bernard Laurens, 2000.
"Capital Controls: Country Experiences with Their Use and Liberalization ,"
IMF Occasional Papers
190, International Monetary Fund.
[Downloadable!]
Wyplosz, Charles, 2001.
"How Risky is Financial Liberalization in the Developing Countries? ,"
CEPR Discussion Papers
2724, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Inci Ötker & Rupa Duttagupta, 2003.
"Exits From Pegged Regimes: An Empirical Analysis ,"
IMF Working Papers
03/147, International Monetary Fund.
[Downloadable!]
Chang, Roberto & Velasco, Andres, 2000.
"Financial Fragility and the Exchange Rate Regime ,"
Journal of Economic Theory ,
Elsevier, vol. 92(1), pages 1-34, May.
[Downloadable!] (restricted)
Ashoka Mody & Eisuke Okada & Enrica Detragiache, 2005.
"Exits from Heavily Managed Exchange Rate Regimes ,"
IMF Working Papers
05/39, International Monetary Fund.
[Downloadable!]
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.
[Downloadable!] (restricted)
Other versions: 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: Hans Genberg & Alexander K. Swoboda, 2005.
"Exchange Rate Regimes: Does What Countries Say Matter? ,"
IMF Staff Papers ,
Palgrave Macmillan Journals, vol. 52(si), pages 8.
[Downloadable!] (restricted)
Kydland, Finn E & Prescott, Edward C, 1977.
"Rules Rather Than Discretion: The Inconsistency of Optimal Plans ,"
Journal of Political Economy ,
University of Chicago Press, vol. 85(3), pages 473-91, June.
[Downloadable!] (restricted)
Gilda Fernandez & Cem Karacadag & Rupa Duttagupta, 2004.
"From Fixed to Float: Operational Aspects of Moving Towards Exchange Rate Flexibility ,"
IMF Working Papers
04/126, International Monetary Fund.
[Downloadable!]
Levy-Yeyati, Eduardo & Sturzenegger, Federico, 2005.
"Classifying exchange rate regimes: Deeds vs. words ,"
European Economic Review ,
Elsevier, vol. 49(6), pages 1603-1635, August.
[Downloadable!] (restricted)
Deepak Mishra & Poonam Gupta & Ratna Sahay, 2003.
"Output Response to Currency Crises ,"
IMF Working Papers
03/230, International Monetary Fund.
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.)
Ahmet Atil Asici, 2007.
"Parametric and Non-parametric Approaches to Exits from Fixed Exchange Rate Regimes ,"
HEI Working Papers
14-2007, Economics Section, The Graduate Institute of International Studies.
[Downloadable!]
Michael W. Klein & Jay C. Shambaugh, 2006.
"The Nature of Exchange Rate Regimes ,"
NBER Working Papers
12729, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Access and
download statistics Did you know? Use the JEL tree to browse through the database by subfields.
This page was last updated on 2008-10-11.
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 .