How to exit from fixed exchange rate regimes?
Ahmet Atil Asici (),
Nadezhda Stanislavovna Ivanova () and
Charles Wyplosz ()
International Journal of Finance & Economics, 2008, vol. 13, issue 3, pages 219-246
This paper improves upon the recently developed literature on exits from fixed exchange rate regimes in three ways: (1) It allows for two indicators for post-exit macroeconomic conditions, the change in the exchange rate and the change in the output gap; (2) it tests whether the distinction between orderly and disorderly exit is statistically justified, and concludes that it is not; (3) it deals with the sample selection problem. The results, subject to extensive sensitivity analysis, suggest that post-exits are better when depegging occurs in good macroeconomic conditions - an unnatural move for most policymakers - when world interest rates decline and in the presence of capital controls. Importantly, 'good' macroeconomic policies do not seem to help with post-exit performance. Copyright © 2007 John Wiley & Sons, Ltd.
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
http://hdl.handle.net/10.1002/ijfe.340 Link to full text; subscription required (text/html)
Working Paper: How to Exit from Fixed Exchange Rate Regimes (2005)
Working Paper: How to Exit From Fixed Exchange Rate Regimes? (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:ijf:ijfiec:v:13:y:2008:i:3:p:219-246
Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307
Access Statistics for this article
International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley
More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Series data maintained by Wiley-Blackwell Digital Licensing ().