evolution of exchange rate regimes since 1990

evidence from de facto policies by Andrea Bubula

Publisher: International Monetary Fund, Monetary and Exchange Affairs Department in [Washington, D.C.]

Written in English
Published: Pages: 44 Downloads: 288
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Subjects:

  • Foreign exchange rates -- Econometric models.,
  • Monetary policy -- Econometric models.,
  • Currency question -- Econometric models.
  • Edition Notes

    StatementAndrea Bubula and *Inci Ötker-Robe.
    GenreEconometric models.
    SeriesIMF working paper -- WP/02/155
    ContributionsÖtker, İnci, International Monetary Fund. Monetary and Exchange Affairs Dept.
    The Physical Object
    Pagination44 p. :
    Number of Pages44
    ID Numbers
    Open LibraryOL20168912M

The most volatile years came along with regime change and revolution. After the Bolshevik revolution, the ruble lost one third of its value, and in the following years while the country was gripped by civil war, the ruble dropped from 31 against the dollar to nearly 1, The new Russian Central Bank set the official exchange rate at. desired exchange rate regime, and especially whether to fix the exchange rate against either some other nation’s currency or a commodity such as gold. The second is the level (price) of the exchange rate.1 The exchange rate regime has two common meanings. The first refers to the prevailing international monetary arrangements. The gold. exchange rate regime and level decisions. At the international level, the character of the Since , international monetary relations have become extremely prominent in practice, and the study of their political economy has accordingly increased in explained, the rise and evolution of regional and global exchange rate institutions, and is. facto exchange rate regime used. This is what we found in Eichengreen and Razo-Garcia (). Where it is sensitive is with respect to the choice between measures of de facto and de jure regimes. And the arguments above apply to de facto regimes. The IMF has long published a series for countries’ official (self-announced) exchange rate regimes.

´Flexible exchange rates as shock absorbers´, National Bureau of Economic Research working paper No. , Cambridge, MA: NBER, International Monetary Fund (). ´The evolution of the exchange rate regimes since evidence from de facto policies´, IMF working paper No. 02/, Washington, DC: IMF,   Economists call the resulting system a "managed float regime," meaning that even though exchange rates for most currencies float, central banks still intervene to prevent sharp changes. As in , countries with large trade surpluses often sell their own currencies in an effort to prevent them from appreciating (and thereby hurting exports).   A floating exchange rate is a regime where a nation's currency is set by the forex market through supply and demand. The currency rises or falls freely, and .   A look at emerging-market exchange rate regimes. that the evolution of emerging-market exchange rate regimes since the crises of the s helped explain their relative robustness in .

Both dollarization and currency unions viewed as the hard exchange rate pegs. Diagram 1. “De Facto Classification of Foreign Exchange Regimes (November – January ) ”. Source: IMF The Evolution of Exchange Rate Regimes Since Evidence from De Facto Polices Exchange Rate Regimes Hard Pegs Regimes Floating Regimes No separate. Georgios Alogoskoufis (Greek: Γιώργος Αλογοσκούφης) (born 17 October ) is a professor of economics at the Athens University of Economics and Business since He was a member of the Hellenic Parliament from September till October and served as Greece's Minister of Economy and Finance from March till January In the period following the Bretton Woods Conference of , exchange rates around the world were pegged to the United States dollar, which could be exchanged for a fixed amount of reinforced the dominance of the US dollar as a global currency. Since the collapse of the fixed exchange rate regime and the gold standard and the institution of floating exchange rates following the.

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Title: The Evolution of Exchange Rate Regimes Since Evidence from De fact o Policies - WP/02/ Created Date: 9/16/ PM. Get this from a library. The evolution of exchange rate regimes since evidence from de facto policies. [Andrea Bubula; İnci Ötker; International Monetary Fund. Monetary and Exchange Affairs Department.] -- This paper presents a monthly database on de facto exchange rate regimes that covers all IMF members since Information from IMF country reports and other sources, including.

In this book, two leading economists examine the operation and consequences of exchange rate regimes in an era of increasing international l Klein and Jay Shambaugh focus on the evolution of exchange rate regimes in the modern era, the period sincewhich followed the Bretton Woods era of –72 and the pre-World.

With the outbreak of the two World Wars in andstable exchange rate regimes had gone completely haywire.

The Bretton Woods system was established. An empirical study of exchange rate regimes based on data compiled from member countries of the International Monetary Fund over the past thirty years.

Few topics in international economics are as controversial as the choice of an exchange rate regime. Since the breakdown of the Bretton Woods system in the early s, countries have adopted a wide variety of regimes, ranging from pure Reviews: 1.

Another Look at the Evolution of Exchange Rate Regimes Table 1 documents the decline in intermediate regimes since For the full sample of countries, the share of intermediate regimes (fixed pegs to a single currency, subsample in (Table 1), they account for a bit more than half today (55 per cent of.

Evolution of the Exchange Rate Regime Founded in Maythe BRB has maintained the exchange rate regime set up by the Belgian trusteeship until February This scheme was based on a dual exchange rate: constituting the negative impact of the socio-political crisis known in Burundi since.

exchange rate regimes in September and November ,2 Executive Directors concluded 2 See the summings up of the Board discussions on “Exchange Rate Regimes in an Integrated World Economy” and “Exchange Rate Regimes in an Integrated World Economy—Further Considerations”, which were subsequently published in Mussa and others ().

Bubula, ÖR (), The evolution of exchange rate regimes since Evidence from De Facto Policies. International Monetary Fund (IMF) Working Paper.

An exchange rate regime is the way a monetary authority of a country or currency union manages the currency in relation to other currencies and the foreign exchange is closely related to monetary policy and the two are generally dependent on many of the same factors, such as economic scale and openness, inflation rate, elasticity of the labor market, financial market development.

1. Introduction. In the early s, Milton Friedman made his case in favor of flexible exchange rate regimes, based on the fact that, in a world with sticky prices, the nominal exchange rate could be used to insulate the economy against real shocks. Since then, a number of theories have confirmed his original intuition and it has become one of the least disputed arguments in favor of.

evolution of exchange regimes in selected Asian economies over the past decade. To preview the main conclusion, it is evident that Asia is home to a wide array of exchange rate regimes, though there are signs of gradual movement toward somewhat 4 The data has since been applied retroactively to The considerations that govern the choice of exchange rate regime are subject to influence by the surrounding domestic and international macroeconomic environment.

Email your librarian or administrator to recommend adding this book to your organisation's collection. (), “Evolution and Performance of Exchange Rate Regimes. In this book, two leading economists examine the operation and consequences of exchange rate regimes in an era of increasing international l Klein and Jay Shambaugh focus on the evolution of exchange rate regimes in the modern era, the period sincewhich followed the Bretton Woods era of and the pre-World.

Currency regimes, until recently, have relied on a link to a valuable commodity, usually gold or silver, to establish the value of a currency. The conference in Bretton Woods, New Hampshire, created the so called Bretton Woods regime of pegged but adjustable exchange rates with the dollar at its center.

The international political economy of exchange rate policy International monetary regimes tend toward one of two ideal types. The first is a fixed-rate system, in which currencies are tied to each other at publicly announced rates. Some fixed-rate systems involve a common link to a. A. Bubula, I.

Ötker-RobeThe Evolution of Exchange Rate Regimes Since Evidence from De Facto Policies International Monetary Fund, Washington, DC. An exchange rate regime is the system that a country’s monetary authority, -generally the central bank- adopts to establish the exchange rate of its own currency against other currencies.

Each country is free to adopt the exchange-rate regime that it considers optimal, and will do so using mostly monetary and sometimes even fiscal policies. The distinction amongst these exchange rates.

other hand, since the abandonment of the Bretton Woods System in far-reaching changes in the spectrum of exchange rate regimes (hereafter, ERRs) have been observed. During this period, Europe moved from the European Monetary System to the euro, Argentina’s attempt to maintain.

country’s choice of its exchange rate regime. I begin with a critical review of Klein and Shambaugh’s () book Exchange Rate Regimes in the Modern Era, and then proceed to provide an alternative overview of what the economics professions knows and needs to know about exchange rate regimes.

Bubula, A. and I. Ötker-Robe () ‘The Evolution of Exchange Rate Regimes Since Evidence from De Facto Policies’, IMF Working Paper No.

Google Scholar. The Impact of Exchange Rate Regime s on Economic Growth with Continuous Classification of de facto Regimes. Jeffrey Frankel. Xiaonan Ma.

Danxia Xie. Ap Abstract. We construct a new database characterizing the de facto Exchange Rate Regime (ERR) for countries during the full post-Bretton Woods period. exible exchange rate regime, prices are usually determined by market forces in accordance with demand and supply (Abdalla, ).

They can either be independent whereby no attempt is made to maintain Evolution of Kenya’s exchange rate system Between andthe KES/USD exchange rate transitioned from xed to crawling to oating eras. The Real Exchange Rate and Growth in Zimbabwe: Does the Currency Regime Matter.

Zuzana Brixiová1 and Mthuli Ncube23 1 Advisor to the Chief Economist and Vice President, the African Development Bank. 2 The Chief Economist and Vice President, the African Development Bank. 3 The authors thank Zorobabel Bicaba for contributions to the regression analysis and discussions.

exchange rate regimes, ranging from floating exchange rate regimes to fixed/pegged regimes. However, maintaining a realistic exchange rate for the naira in Nigeria is very crucial, given the structure of the economy.

Sanusi () opined the importance of maintaining a realistic exchange rate for naira, and also the need to minimize. Exchange Rate Systems in Selected Emerging Markets (): The Brazilian real – The crawling peg was replaced by a floating exchange rate in The Hong Kong dollar – It is on a currency board.

The Indonesian rupiah – The managed float was replaced by a floating exchange rate. The exchange rate is sometimes called the most important price in a highly globalized world. A country's choice of its exchange rate regime, between government-managed fixed rates and market-determined floating rates has significant implications for monetary policy, trade, and macroeconomic outcomes, and is the subject of both academic and policy debate.

Evolution of China’s Exchange Rate Regime in the Reform Era Reforms of China’s exchange rate regime have been a key factor underlying the country’s growing participation in global trade since economic reform began in From until the late s, the state fixed China’s.

Exchange Rate Regimes Applied Macro and International Economics Alberto Cavallo February – Since the recent financial crisis CBs are focusing – Germany reunification higher rates in Germany to avoid inflation UK in recession.

Aside from factors such as interest rates and inflation, the currency exchange rate is one of the most important determinants of a country's relative level of economic ge rates play a.

exchange rate regime and pegged the exchange rate at US$1: Z$ in (CSO, ). Inthe peg was adjusted to US$1: Z$ and remained there until the beginning of January Exchange controls in the official exchange market for foreign currency fuelled the.An empirical study of exchange rate regimes based on data compiled from member countries of the International Monetary Fund over the past thirty years.

Few topics in international economics are as controversial as the choice of an exchange rate regime. Since the breakdown of the Bretton Woods system in the early s, countries have adopted a wide variety of regimes, ranging from pure.

Michael Klein and Jay Shambaugh focus on the evolution of exchange rate regimes in the modern era, the period sincewhich followed the Bretton Woods era of –72 and the pre-World War I gold standard era.

Klein and Shambaugh offer a comprehensive, integrated treatment of the characteristics of exchange rate regimes and their effects. Reviews: 3.