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Are Emerging Market Countries Learning to Float?

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Author Info

  • Dalia Hakura

Abstract

The paper finds that exchange rate flexibility in emerging market countries has increased over the past decade. This "learning to float" appears to have involved a strengthening of monetary and financial policy frameworks aimed at directly addressing the key vulnerabilities that give rise to the "fear of floating." The results in the paper suggest that the trend toward greater exchange rate flexibility, alongside a strengthening of banking supervision, has afforded emerging market countries more monetary policy independence.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/98.

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Length: 34
Date of creation: 01 May 2005
Date of revision:
Handle: RePEc:imf:imfwpa:05/98

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Related research

Keywords: Emerging markets; Developed countries; Floating exchange rates; exchange rate; exchange rate regimes; flexible exchange rate; flexible exchange rate regimes; financial liberalization; domestic interest rates; exchange rate regime; exchange rate flexibility; financial sector; exchange rates; exchange rate overvaluation; currency crises; flexible exchange rates; domestic financial liberalization; exchange rate classification; exchange rate depreciation; international interest rates; exchange rate pass; real exchange rate overvaluation; overvaluation; financial sector liberalization; exchange rate volatility; real effective exchange rate; effective exchange rate; interest rate controls; international finance; financial markets; effective exchange rates; international financial statistics; exchange rate arrangements; financial institutions; real exchange rate; financial ? liberalization; nominal exchange rate; reserve requirements; bond; exchange rate system; exchange rate fluctuations; financial instruments; nominal bilateral exchange rates; fixed exchange rate regimes; bilateral exchange rates; fixed exchange rate; international capital; domestic ? financial ? liberalization; international capital mobility; de facto exchange rate regime; domestic-currency; overvalued exchange rate; undervalued exchange rates; currency convertibility; cash flow; exchange rate movements; fixed exchange rates; financial market; exchange rate pegs; financial reform; bond market; financial policies; exchange rate depreciations; financial systems; exchange rate category; exchange rate regime durability; exchange rate data; market exchange rates; exchange rate appreciation; international reserves; equity market; nominal interest rate; history of exchange rate; bond markets; exchange rate policy; current account balance; bilateral exchange rate; domestic financial systems; exchange rate stability; real effective exchange rates; currency regime; money market; financial controls;

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References

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  1. Gian Maria Milesi-Ferrett & Assaf Razin, 1998. "Current Account Reversals and Currency Crises: Empirical Regularities," NBER Working Papers 6620, National Bureau of Economic Research, Inc.
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  17. Eichengreen, B. & Masson, P. & Savastano, M. & Sharma, S., 1999. "Transition Strategies and Nominal Anchors on the Road to Greater Exchange-Rate Flexibility," Princeton Essays in International Economics 213, International Economics Section, Departement of Economics Princeton University,.
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Citations

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Cited by:
  1. Ramkishen S. Rajan, 2011. "Management of Exchange Rate Regimes in Emerging Asia," Governance Working Papers 23214, East Asian Bureau of Economic Research.
  2. Bersch, Julia & Klüh, Ulrich H., 2007. "When countries do not do what they say: Systematic discrepancies between exchange rate regime announcements and de facto policies," Discussion Papers in Economics 2072, University of Munich, Department of Economics.
  3. Alena Kimakova, 2006. "Does globalization enhance the role of fiscal policy in economic stabilization?," Economics Bulletin, AccessEcon, vol. 8(11), pages 1-11.
  4. Reginaldo P. Nogueira Jnr, 2006. "Inflation Targeting, Exchange Rate Pass-Through and 'Fear of Floating'," Studies in Economics 0605, Department of Economics, University of Kent.
  5. repec:ebl:ecbull:v:30:y:2010:i:1:p:624-635 is not listed on IDEAS

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