How to Exit From Fixed Exchange Rate Regimes?
Ahmet Asici; Nadezhda Ivanova; Charles Wyplosz ()
Additional contact information
Ahmet Asici; Nadezhda Ivanova; Charles Wyplosz: IUHEI, The Graduate Institute of International Studies, Geneva
Authors registered in the RePEc Author Service: Nadezhda Stanislavovna Ivanova,
Charles Wyplosz () and
Ahmet Atil Asici ()
No 03-2005, IHEID Working Papers from Economics Section, The Graduate Institute of International Studies
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 occur 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.
Keywords: exchange rate regimes; macroeconomic policy (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Journal Article: How to exit from fixed exchange rate regimes? (2008)
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:gii:giihei:heiwp03-2005
Access Statistics for this paper
More papers in IHEID Working Papers from Economics Section, The Graduate Institute of International Studies Contact information at EDIRC.
Series data maintained by Rahul Mehrotra ().