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The Modern History of Exchange Rate Arrangements: A Reinterpretation

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  • Carmen M. Reinhart
  • Kenneth S. Rogoff

Abstract

We develop a novel system of reclassifying historical exchange rate regimes. One key difference between our study and previous classifications is that we employ monthly data on market-determined parallel exchange rates going back to 1946 for 153 countries. Our approach differs from the IMF official classification (which we show to be only a little better than random); it also differs radically from all previous attempts at historical reclassification. Our classification points to a rethinking of economic performance under alternative exchange rate regimes. Indeed, the breakup of Bretton Woods had less impact on exchange rate regimes than is popularly believed.

Suggested Citation

  • Carmen M. Reinhart & Kenneth S. Rogoff, 2004. "The Modern History of Exchange Rate Arrangements: A Reinterpretation," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 1-48.
  • Handle: RePEc:oup:qjecon:v:119:y:2004:i:1:p:1-48.
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    File URL: http://hdl.handle.net/10.1162/003355304772839515
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    References listed on IDEAS

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    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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