Do “Flexible” Exchange Rates of Developing Countries Behave Like the Floating Exchange Rates of Industrialized Countries?

May 1, 2002

Preview Citation

Format: Chicago

Peter Wickham. Do “Flexible” Exchange Rates of Developing Countries Behave Like the Floating Exchange Rates of Industrialized Countries?, (USA: International Monetary Fund, 2002) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper examines the behavior of daily spot exchange rates for a sample of industrialized countries which are generally considered to be floating with only occasional official foreign exchange market intervention. This behavior is then compared to the behavior of the exchange rates of a sample of sixteen developing countries whose regimes are often classified as being “flexible”. Considerable differences in the way these developing countries’ exchange rate regimes operate is apparent from the daily data, with some sharing similarities with the regimes of the industrialized countries and with others demonstrating regime shifts and other marked discontinuities.

Subject: Currencies, Currency markets, Exchange rate arrangements, Exchange rates, Financial markets, Foreign exchange, Foreign exchange intervention, Money

Keywords: Africa, Asia and Pacific, Currencies, Currency board arrangement, Currency markets, Currency peg, Developing country, Dollar, Exchange market intervention, Exchange market pressure, Exchange rate, Exchange rate arrangements, Exchange rate data, Exchange rate objective, Exchange rates, Flexible and floating exchange rates, Foreign exchange intervention, Hong Kong dollar, Indian rupee, Intervention, Kenyan shilling, Low-frequency exchange rate, Market, Philippine peso, WP, Zimbabwe dollar

Publication Details

Pages:

38
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2002/082
Stock No:

WPIEA0822002
ISBN:

9781451850451
ISSN:

1018-5941

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