Exchange rate anchoring - Is there still a de facto US dollar standard?
AbstractThe paper provides a measure of exchange rate anchoring behaviour across 149 emerging market and developing economies for the 1980-2010 period. An extension of the Frankel and Wei (2008) methodology is used to determine whether exchange rates are pegged or floating, and in the case of pegs, to which anchor currencies they are pegged. To capture the role of major currencies over time, an aggregate trade-weighted indicator is constructed based on exchange rate regimes of individual countries. The evolution of this aggregate indicator suggests that the US dollar has continuously dominated exchange rate regimes, despite some temporary decoupling during major financial crises. JEL Classification: F30, F31, F33
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Bibliographic InfoPaper provided by European Central Bank in its series Working Paper Series with number 1353.
Date of creation: Jun 2011
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Find related papers by JEL classification:
- F30 - International Economics - - International Finance - - - General
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-25 (All new papers)
- NEP-CBA-2011-06-25 (Central Banking)
- NEP-IFN-2011-06-25 (International Finance)
- NEP-MON-2011-06-25 (Monetary Economics)
- NEP-OPM-2011-06-25 (Open Economy Macroeconomics)
- NEP-SEA-2011-06-25 (South East Asia)
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