On the endogeneity of exchange rate regimes
The literature has identified at least five approaches to the determinants of the choice of exchange rate regimes: i) optimal currency area theory; ii) exchange rate policy and the absortion of real and nominal shocks; iii) exchange rate rules as a policy crutch in credibility-challenged economies;...
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| Autores principales: | , , |
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| Formato: | Documento de trabajo acceptedVersion |
| Lenguaje: | Inglés |
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Universidad Torcuato Di Tella. Escuela de Negocios. Centro de Investigaciones en Finanzas (CIF)
2018
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| Materias: | |
| Acceso en línea: | http://repositorio.utdt.edu/handle/utdt/10759 |
| Aporte de: |
| id |
I57-R16320.500.13098-10759 |
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| record_format |
dspace |
| institution |
Universidad Torcuato Di Tella |
| institution_str |
I-57 |
| repository_str |
R-163 |
| collection |
Repositorio Digital Universidad Torcuato Di Tella |
| language |
Inglés |
| orig_language_str_mv |
eng |
| topic |
Tipo de cambio Análisis comparativo Análisis financiero Política monetaria |
| spellingShingle |
Tipo de cambio Análisis comparativo Análisis financiero Política monetaria Levy Yeyati, Eduardo Sturzenegger, Federico Regio, Iliana On the endogeneity of exchange rate regimes |
| description |
The literature has identified at least five approaches to the determinants of the choice of exchange rate regimes: i) optimal currency area theory; ii) exchange rate policy and the absortion of real and nominal shocks; iii) exchange rate rules as a policy crutch in credibility-challenged economies; iv) the impossible trinity in light of increasing financial globalization; and v) the balance sheet exposure to exchange rate changes in financially dollarized economies. Using both a de facto and a de jure regime classification, we test the empirical relevance of these approaches simultaneously. We find overall empirical support for all of them, although their relative relevance varies substantially between industrial and non-industrial economies. We show that regime choices, as well as deviations between actual and reported policies, can be accurately predicted by a small number of economic and political characteristics of each country. When regimes are correctly characterized, they display no time trend, suggesting that the trends typically highlighted in the exchange rate regime debate can be traced back to the evolution of their natural determinants. |
| format |
Documento de trabajo acceptedVersion |
| author |
Levy Yeyati, Eduardo Sturzenegger, Federico Regio, Iliana |
| author_facet |
Levy Yeyati, Eduardo Sturzenegger, Federico Regio, Iliana |
| author_sort |
Levy Yeyati, Eduardo |
| title |
On the endogeneity of exchange rate regimes |
| title_short |
On the endogeneity of exchange rate regimes |
| title_full |
On the endogeneity of exchange rate regimes |
| title_fullStr |
On the endogeneity of exchange rate regimes |
| title_full_unstemmed |
On the endogeneity of exchange rate regimes |
| title_sort |
on the endogeneity of exchange rate regimes |
| publisher |
Universidad Torcuato Di Tella. Escuela de Negocios. Centro de Investigaciones en Finanzas (CIF) |
| publishDate |
2018 |
| url |
http://repositorio.utdt.edu/handle/utdt/10759 |
| work_keys_str_mv |
AT levyyeyatieduardo ontheendogeneityofexchangerateregimes AT sturzeneggerfederico ontheendogeneityofexchangerateregimes AT regioiliana ontheendogeneityofexchangerateregimes |
| bdutipo_str |
Repositorios |
| _version_ |
1764820543040651267 |