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Exchange Rate Regimes 20 years later: The prevalence of floats

Author

Listed:
  • Eduardo Levy Yeyati

    (Universidad Di Tella)

  • Federico Sturzenegger

    (Universidad de San Andres and Harvard Kennedy School)

Abstract

De facto exchange rate classifications are a standard tool in international finance. In this paper we update our (2005) de facto classification through 2022. We find that the US dollar remains as valid as reference currency as it was during the Bretton Woods period. We also show that there has been a steady trend towards floating regimes with 20% more countries floating than 50 years ago. However, when adjusted by GDP, the share of floats has remained very high and stable over time, while fixed regimes have mostly been confined to smaller economies. We also find that discrepancies between de jure and de facto regimes is presently at an all time low.

Suggested Citation

  • Eduardo Levy Yeyati & Federico Sturzenegger, 2022. "Exchange Rate Regimes 20 years later: The prevalence of floats," Working Papers 166, Universidad de San Andres, Departamento de Economia, revised Nov 2023.
    • Handle: RePEc:sad:wpaper:166
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    File URL: https://webacademicos.udesa.edu.ar/pub/econ/doc166.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Exchange rate regimes; fear of floating; fear of appreciation;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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