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The Case for an Intermediate Exchange Rate Regime with Endogenizing Market Structures and Capital Mobility

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Author Info
Kaltenbrunner, Annina
Nissanke, Machiko
Abstract

Set in the context of the recent theoretical and policy debates on appropriate exchange rate regimes for emerging market economies in a world of free capital mobility, the paper attempts to present the case for an intermediate exchange rate regime, drawing on recent theoretical and empirical literatures on behavioural finance and currency market structures; and to examine empirically the experiences and evolution of Brazil.s foreign exchange market under different exchange rate regimes.

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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Papers with number UNU-WIDER Research Paper RP2009/29.

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Length: 33
Date of creation: 2009
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Handle: RePEc:unu:wpaper:rp2009-29

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Keywords: exchange rate management; emerging markets; Brazil;

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