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Currency Misalignments in emerging and developing countries: reassessing the role of Exchange Rate Regimes

Listed author(s):
  • Cécile Couharde
  • Carl Grekou

This paper re-examines empirically the relationship between exchange rate regimes and currency misalignments in emerging and developing countries. Using alternative de facto exchange rate regime classifications over the period 1980-2012, it finds strong evidence that performance of exchange rate regimes is conditional on the de facto classification. In particular, this paper shows that the effect of monetary arrangements on currency misalignments depends critically on the ability of these classification schemes to capture adequately dysfunctional monetary regimes.

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File URL: http://economix.fr/pdf/dt/2016/WP_EcoX_2016-31.pdf
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Paper provided by University of Paris Nanterre, EconomiX in its series EconomiX Working Papers with number 2016-31.

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Length: 54 pages
Date of creation: 2016
Handle: RePEc:drm:wpaper:2016-31
Contact details of provider: Postal:
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Web page: https://economix.fr/
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  8. Eduardo Levy-Yeyati & Federico Sturzenegger, 2003. "To Float or to Fix: Evidence on the Impact of Exchange Rate Regimes on Growth," American Economic Review, American Economic Association, vol. 93(4), pages 1173-1193, September.
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  15. Ethan Ilzetzki & Carmen M. Reinhart & Kenneth S. Rogoff, 2017. "Exchange Arrangements Entering the 21st Century: Which Anchor Will Hold?," NBER Working Papers 23134, National Bureau of Economic Research, Inc.
  16. Rebecca L Driver & Peter F Westaway, 2005. "Concepts of equilibrium exchange rates," Bank of England working papers 248, Bank of England.
  17. Levy-Yeyati, Eduardo & Sturzenegger, Federico & Gluzmann, Pablo Alfredo, 2013. "Fear of appreciation," Journal of Development Economics, Elsevier, vol. 101(C), pages 233-247.
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