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Are Pegged and Intermediate Regimes More Crisis Prone?, Andrea Bubula, Inci Ötker

This paper provides evidence on the susceptibility of different types of exchange rate regimes to currency crises during 1990-2001. It explores the incidence of crises, identified as episodes of severe exchange market pressure, to seek evidence on whether pegged regimes are more crisis prone than floating regimes and on whether certain types of pegged regimes are more crisis prone than others. The paper finds that pegged regimes, as a whole, have been characterized by a higher incidence of crises than floating regimes, for countries that are more integrated with international capital markets; and that intermediate regimes (mainly soft pegs and tightly-managed floating regimes) have been more crisis prone than both hard pegs and other floating regimes-a view consistent with the bipolar view of exchange rate regimes. The degree of crisis proneness seems to be broadly similar across different types of intermediate regimes
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. EXCHANGE RATE REGIMES AND CURRENCY CRISES""; ""A. Classification of Exchange Rate Regimes""; ""B. Identifying “Crisis� Episodes""; ""C. Crisis Proneness of Various Exchange Rate Regimes""; ""III. CONCLUDING REMARKS""; ""Survey of Methodologies to Identify Crises Through the Market Pressure Index""; ""COMPUTATION OF THE EXCHANGE MARKET PRESSURE (EMP) INDEX""; ""DESCRIPTION OF DATA AND SOURCES""; ""REFERENCES""
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (36 p.)
Specific Material Designation
Form Of Item

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