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Mark my Words: Information and the Fear of Declaring one’s Exchange Rate Regime

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  • Pierre-Guillaume Méon
  • Geoffrey Minne

Abstract

This paper investigates the role of a free press and of the circulation of information on the capacity of a country to declare an exchange regime that is different from the regime it de facto implements. We put forward consistent evidence that increased press freedom and easier access to information results in a lower probability of untruthfully reporting the regime that is implemented. The finding is resistant to a large set of robustness checks, including controlling for democracy.

Suggested Citation

  • Pierre-Guillaume Méon & Geoffrey Minne, 2011. "Mark my Words: Information and the Fear of Declaring one’s Exchange Rate Regime," Working Papers CEB 11-040, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:sol:wpaper:2013/97393
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    Cited by:

    1. Liu, Xiaohui & Zhang, Jing, 2015. "Export diversification and exchange-rate regimes: Evidences from 72 developing countries," MPRA Paper 66448, University Library of Munich, Germany.
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    3. repec:cii:cepiei:2015-q1-141-8 is not listed on IDEAS
    4. Slimani, Slah & Ben Allem, Khawla, 2018. "Determinants of real exchange rate misalignment: An empirical analysis for MENA region," MPRA Paper 91605, University Library of Munich, Germany.

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    More about this item

    Keywords

    Official exchange rate regime; de facto exchange rate regime; press freedom; information; fear of floating.;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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