Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80324
Authors: 
Bleaney, Michael
Francisco, Manuela
Year of Publication: 
2007
Series/Report no.: 
CREDIT Research Paper 07/04
Abstract: 
Official and four alternative regime classification schemes based on observed exchange rate behaviour are used to examine the relationship with inflation and growth in developing countries. For an identical sample of observations from 73 countries for 1984-2001, only the scheme based on parallel rates suggests a significant effect (negative) of floating on growth. Floats that claim to be pegs, or have high exchange rate volatility, are the ones with lower growth. Hard pegs offer inflation benefits. Floating is not consistently associated with higher inflation than soft pegs, and any apparent association is a possible by-product of the design of the classification algorithms.
Subjects: 
exchange rate regimes
growth
inflation
JEL: 
E31
F41
O40
Document Type: 
Working Paper

Files in This Item:
File
Size
148.02 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.