Evolution and Performance of Exchange Rate Regimes

By Robin Brooks, Kenneth Rogoff, Ashoka Mody, Nienke Oomes, Aasim M. Husain

May 26, 2004

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Robin Brooks, Kenneth Rogoff, Ashoka Mody, Nienke Oomes, and Aasim M. Husain Evolution and Performance of Exchange Rate Regimes, (USA: International Monetary Fund, 2004) accessed November 25, 2024

Summary

The issue of the appropriate exchange rate regime for individual countries has been perennially lively, and the role played by international capital flows and domestic financial systems in determining the performance of these regimes has gained prominence in the policy debate. Using recent advances in the classification of exchange rate regimes, the key message in this paper is that, as economies and their institutions mature, the value of exchange rate flexibility increases. This study assesses the historical durability and performance of alternative exchange rate regimes, with special focus on developing and emerging market countries. It describes trends in the distribution of regimes and examines the transitions between regimes. It also reviews the performance of exchange rate regimes in terms of inflation and business cycles.

Subject: Emerging and frontier financial markets, Exchange rate arrangements, Exchange rate flexibility, Exchange rates, Financial markets, Foreign exchange, Inflation, Prices

Keywords: Country, East Asia, Emerging and frontier financial markets, Exchange rate arrangements, Exchange rate flexibility, Exchange rates, Global, Inflation, Inflation benefit, Intermediate regime, OP, Policy credibility, Policy goal, Regime, Regime choice

Publication Details

Pages:

62
Volume:

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DOI:

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Issue:

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Series:

Occasional Paper No. 2004/004
Stock No:

S229EA
ISBN:

9781589063273
ISSN:

0251-6365

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