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Are Monetary Rules and Reforms Complements or Substitutes? A Panel Analysis for the World versus OECD Countries

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Author Info

  • Ansgar Belke

    ()
    (University of Hohenheim (Department of Economics), Stuttgart/Germany)

  • Bernhard Herz

    (University of Bayreuth)

  • Lukas Vogel

    (University of Bayreuth)

Abstract

This paper investigates the relationship between the exchange rate regime and the degree of structural reforms using panel data techniques. We look at a broad sample of countries (the “world sample”) and also an OECD sample. Our main findings suggest that adopting a fixed exchange rate rule is positively correlated with the degree of overall structural reforms and the trade component. The paper also highlights the fact that considering a heterogeneous panel of countries as opposed to a limited does not matter for this results.

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Bibliographic Info

Paper provided by Oesterreichische Nationalbank (Austrian Central Bank) in its series Working Papers with number 129.

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Length: 51
Date of creation: 06 Jul 2006
Date of revision:
Handle: RePEc:onb:oenbwp:129

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Keywords: exchange rates; monetary policy regime; liberalisation; panel data;

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References

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Cited by:
  1. Jacques Pelkmans & Lourdes Acedo Montoya & Alessandro Maravalle, 2008. "How product market reforms lubricate shock adjustment in the euro area," European Economy - Economic Papers 341, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.

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