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Evolution and Performance of Exchange Rate Regimes, Aasim Husain, Ashoka Mody, Nienke Oomes, Robin Brooks, Kenneth Rogoff

Label
Evolution and Performance of Exchange Rate Regimes, Aasim Husain, Ashoka Mody, Nienke Oomes, Robin Brooks, Kenneth Rogoff
Language
eng
Abstract
Using recent advances in the classification of exchange rate regimes, this paper finds no support for the popular bipolar view that countries will tend over time to move to the polar extremes of free float or rigid peg. Rather, intermediate regimes have shown remarkable durability. The analysis suggests that as economies mature, the value of exchange rate flexibility rises. For countries at a relatively early stage of financial development and integration, fixed or relatively rigid regimes appear to offer some anti-inflation credibility gain without compromising growth objectives. As countries develop economically and institutionally, there appear to be considerable benefits to more flexible regimes. For developed countries that are not in a currency union, relatively flexible exchange rate regimes appear to offer higher growth without any cost in credibility
resource.governmentPublication
international or intergovernmental publication
Literary Form
non fiction
Main title
Evolution and Performance of Exchange Rate Regimes
Nature of contents
dictionaries
Responsibility statement
Aasim Husain, Ashoka Mody, Nienke Oomes, Robin Brooks, Kenneth Rogoff
Series statement
IMF Working Papers
Content
Other version