IDEAS home Printed from https://ideas.repec.org/a/kap/openec/v23y2012i3p421-445.html
   My bibliography  Save this article

Exchange Rate Policy in Small Rich Economies

Author

Abstract

We look at the exchange rate policy choices and outcomes for small rich economies. Small rich economies face significant policy challenges due to proportionately greater economic volatility than larger economies. These economies usually choose some form of fixed exchange rate regime, particularly in the very small economies where the per capita cost of independent monetary policy is relatively high. When such countries do choose a free or managed floating regime, they appear to derive no benefit from those regimes; their exchange rate volatility seems to rise without any significant change in fundamental economic volatility. Thus, for these countries, floating exchange rates seem to create problems for policy makers without solving any.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Francis Breedon & Thórarinn Pétursson & Andrew Rose, 2012. "Exchange Rate Policy in Small Rich Economies," Open Economies Review, Springer, vol. 23(3), pages 421-445, July.
  • Handle: RePEc:kap:openec:v:23:y:2012:i:3:p:421-445
    DOI: 10.1007/s11079-011-9226-0
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11079-011-9226-0
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:kap:atlecj:v:45:y:2017:i:4:d:10.1007_s11293-017-9555-5 is not listed on IDEAS
    2. Michael Bleaney & Mo Tian & Lin Yin, 2016. "Global Trends in the Choice of Exchange Rate Regime," Open Economies Review, Springer, vol. 27(1), pages 71-85, February.
    3. Dumitriu, Ramona & Stefanescu, Razvan, 2013. "Utilizarea cursurilor valutare drept ancore nominale antiinflaţioniste
      [The use of exchange rates as nominal anchors]
      ," MPRA Paper 52415, University Library of Munich, Germany.
    4. Bjarni G. Einarsson & Gudjón Emilsson & Svava J. Haraldsdóttir & Thórarinn G. Pétursson & Rósa B. Sveinsdóttir, 2013. "On our own? The Icelandic business cycle in an international context," Economics wp63, Department of Economics, Central bank of Iceland.
    5. Bjarni G. Einarsson & Kristófer Gunnlaugsson & Thorvardur Tjörvi Ólafsson & Thórarinn G. Pétursson, 2016. "The long history of financial boom-bust cycles in Iceland - Part II: Financial cycles," Economics wp72, Department of Economics, Central bank of Iceland.
    6. Ortega, José Luis & Aguillo, Isidro F., 2013. "Institutional and country collaboration in an online service of scientific profiles: Google Scholar Citations," Journal of Informetrics, Elsevier, vol. 7(2), pages 394-403.
    7. Bjarni G. Einarsson & Kristófer Gunnlaugsson & Thorvardur Tjörvi Ólafsson & Thórarinn G. Pétursson, 2015. "The long history of financial boom-bust cycles in Iceland - Part I: Financial crises," Economics wp68, Department of Economics, Central bank of Iceland.
    8. Bohl, Martin T. & Michaelis, Philip & Siklos, Pierre L., 2016. "Austerity and recovery: Exchange rate regime choice, economic growth, and financial crises," Economic Modelling, Elsevier, vol. 53(C), pages 195-207.
    9. Ghassan Dibeh, 2014. "The Political Economy of Monetary Policy in Resource-Rich Arab Economies," Working Papers 896, Economic Research Forum, revised Dec 2014.
    10. Bjarni G. Einarsson & Gudjón Emilsson & Svava J. Haraldsdóttir & Ólafur Ö. Klemensson & Thórarinn G. Pétursson & Rósa B. Sveinsdóttir, 2013. "The production and export structure of the Icelandic economy. An international comparison," Economics wp60, Department of Economics, Central bank of Iceland.
    11. Peter, Manuel, 2015. "Konvergenz der europäischen Aktienmärkte: Eine Analyse der Entwicklungen und Herausforderungen für Investoren," Arbeitspapiere 150, University of Münster, Institute for Cooperatives.
    12. repec:wsi:serxxx:v:62:y:2017:i:01:n:s0217590817400069 is not listed on IDEAS
    13. International Monetary Fund, 2012. "Iceland; Selected Issues Paper," IMF Staff Country Reports 12/90, International Monetary Fund.

    More about this item

    Keywords

    Small economies; Exchange rate regimes; F33; E52;

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:openec:v:23:y:2012:i:3:p:421-445. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.